How are CARZ 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 CARZ collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $511.00 per contract and the computed maximum loss is -$389.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CARZ collar?

The breakeven for the CARZ collar priced on this page is roughly $108.89 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 CARZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CARZ implied volatility affect this collar?

CARZ ATM IV is at 25.50% with IV rank near 1.00%, 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.

CARZ Collar Strategy

CARZ (First Trust S-Network Future Vehicles & Technology ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The First Trust S-Network Future Vehicles & Technology ETF (CARZ), previously known as the First Trust NASDAQ Global Auto Index Fund, endeavors to generally mirror the price and income performance of the S-Network Electric & Future Vehicle Ecosystem Index, prior to accounting for its own operational costs. The fund typically allocates at least 90% of its total assets, which may include borrowed capital used for investment, to the common stocks and depository receipts that comprise this benchmark index.

CARZ (First Trust S-Network Future Vehicles & Technology ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $56.6M, a beta of 1.78 versus the broader market, a 52-week range of 64.95-123.17, average daily share volume of 4K, a public-listing history dating back to 2011. These structural characteristics shape how CARZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.78 indicates CARZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CARZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on CARZ?

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.

CARZ snapshot

As of August 14, 2026, spot at $108.78, ATM IV 25.50%, IV rank 1.00%, expected move 7.31%. The collar on CARZ 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 CARZ specifically: IV regime affects collar pricing on both sides; compressed CARZ IV at 25.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.31% (roughly $7.95 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 CARZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on CARZ should anchor to the underlying notional of $108.78 per share and to the trader's directional view on CARZ etf.

CARZ collar setup

The CARZ 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 CARZ at $108.78 on that close, the first option leg uses a $114.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CARZ 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 CARZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$108.78	long
Sell 1	Call	$114.00	$1.62
Buy 1	Put	$105.00	$1.73

CARZ collar risk and reward

Net Premium / Debit: -$10,889.00
Max Profit (per contract): $511.00
Max Loss (per contract): -$389.00
Breakeven(s): $108.89
Risk / Reward Ratio: 1.314

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.

CARZ collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CARZ. 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%	-$389.00
$24.06	-77.9%	-$389.00
$48.11	-55.8%	-$389.00
$72.16	-33.7%	-$389.00
$96.21	-11.6%	-$389.00
$120.26	+10.6%	+$511.00
$144.31	+32.7%	+$511.00
$168.37	+54.8%	+$511.00
$192.42	+76.9%	+$511.00
$216.47	+99.0%	+$511.00

When traders use collar on CARZ

Collars on CARZ hedge an existing long CARZ 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.

CARZ thesis for this collar

The market-implied 1-standard-deviation range for CARZ extends from approximately $100.83 on the downside to $116.73 on the upside. A CARZ collar hedges an existing long CARZ 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 CARZ IV rank near 1.00% 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 CARZ at 25.50%. As a Financial Services name, CARZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CARZ-specific events.

CARZ 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. CARZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CARZ alongside the broader basket even when CARZ-specific fundamentals are unchanged. Always rebuild the position from current CARZ chain quotes before placing a trade.

Frequently asked questions

What is a collar on CARZ?: A collar on CARZ is the collar strategy applied to CARZ (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 CARZ etf at $108.78 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CARZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CARZ 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 CARZ collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $511.00 per contract and the computed maximum loss is -$389.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CARZ collar?: The breakeven for the CARZ collar priced on this page is roughly $108.89 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 CARZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CARZ?: Collars on CARZ hedge an existing long CARZ 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 CARZ implied volatility affect this collar?: CARZ ATM IV is at 25.50% with IV rank near 1.00%, 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.