How are BNDD collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the BNDD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.60%), the computed maximum profit is $482.00 per contract and the computed maximum loss is -$518.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BNDD collar?

The breakeven for the BNDD collar priced on this page is roughly $96.18 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BNDD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BNDD implied volatility affect this collar?

BNDD ATM IV is at 18.60% with IV rank near 2.75%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

BNDD Collar Strategy

BNDD (Quadratic Deflation ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

KraneShares Trust - Quadratic Deflation ETF is an exchange traded fund launched and managed by Krane Funds Advisors, LLC. The fund is co-managed by Quadratic Capital Management LLC. It invests directly, through derivatives and through other funds in the fixed income markets of the United States. The fund primarily invests in a mix of U.S. Treasury securities and option strategies tied to the shape of the U.S. interest rate swap curve. It seeks to invest in securities of any maturity.

BNDD (Quadratic Deflation ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $6.2M, a beta of 1.24 versus the broader market, a 52-week range of 94.64-102.28, average daily share volume of 31K, a public-listing history dating back to 2021. These structural characteristics shape how BNDD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.24 places BNDD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BNDD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BNDD?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

BNDD snapshot

As of August 14, 2026, spot at $95.90, ATM IV 18.60%, IV rank 2.75%, expected move 5.33%. The collar on BNDD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on BNDD specifically: IV regime affects collar pricing on both sides; compressed BNDD IV at 18.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.33% (roughly $5.11 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BNDD expiries trade a higher absolute premium for lower per-day decay. Position sizing on BNDD should anchor to the underlying notional of $95.90 per share and to the trader's directional view on BNDD etf.

BNDD collar setup

The BNDD collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BNDD at $95.90 on that close, the first option leg uses a $101.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BNDD chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 BNDD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$95.90	long
Sell 1	Call	$101.00	$0.13
Buy 1	Put	$91.00	$0.41

BNDD collar risk and reward

Net Premium / Debit: -$9,618.00
Max Profit (per contract): $482.00
Max Loss (per contract): -$518.00
Breakeven(s): $96.18
Risk / Reward Ratio: 0.931

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

BNDD collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BNDD. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$518.00
$21.21	-77.9%	-$518.00
$42.42	-55.8%	-$518.00
$63.62	-33.7%	-$518.00
$84.82	-11.6%	-$518.00
$106.02	+10.6%	+$482.00
$127.23	+32.7%	+$482.00
$148.43	+54.8%	+$482.00
$169.63	+76.9%	+$482.00
$190.84	+99.0%	+$482.00

When traders use collar on BNDD

Collars on BNDD hedge an existing long BNDD etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

BNDD thesis for this collar

The market-implied 1-standard-deviation range for BNDD extends from approximately $90.79 on the downside to $101.01 on the upside. A BNDD collar hedges an existing long BNDD position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current BNDD IV rank near 2.75% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on BNDD at 18.60%. As a Financial Services name, BNDD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BNDD-specific events.

BNDD collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. BNDD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BNDD alongside the broader basket even when BNDD-specific fundamentals are unchanged. Always rebuild the position from current BNDD chain quotes before placing a trade.

Frequently asked questions

What is a collar on BNDD?: A collar on BNDD is the collar strategy applied to BNDD (etf). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With BNDD etf at $95.90 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BNDD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BNDD collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the BNDD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 18.60%), the computed maximum profit is $482.00 per contract and the computed maximum loss is -$518.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BNDD collar?: The breakeven for the BNDD collar priced on this page is roughly $96.18 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BNDD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BNDD?: Collars on BNDD hedge an existing long BNDD etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current BNDD implied volatility affect this collar?: BNDD ATM IV is at 18.60% with IV rank near 2.75%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.