CORN Collar Strategy
CORN (Teucrium Corn Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Teucrium Corn Fund (CORN) is a commodity pool that provides investors with a cost-effective way to gain price exposure to the corn market for future delivery. The fund invests in a portfolio of corn futures contracts with different expiration dates to mitigate the effects of contango. It is not a mutual fund and does not invest in physical corn.
CORN (Teucrium Corn Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $52.4M, a beta of 0.45 versus the broader market, a 52-week range of 16.36-20.43, average daily share volume of 425K, a public-listing history dating back to 2010. These structural characteristics shape how CORN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates CORN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on CORN?
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.
CORN snapshot
As of September 29, 2026, spot at $19.52, ATM IV 22.20%, IV rank 5.16%, expected move 6.36%. The collar on CORN below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.
Why this collar structure on CORN specifically: IV regime affects collar pricing on both sides; compressed CORN IV at 22.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.36% (roughly $1.24 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CORN expiries trade a higher absolute premium for lower per-day decay. Position sizing on CORN should anchor to the underlying notional of $19.52 per share and to the trader's directional view on CORN etf.
CORN collar setup
The CORN collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CORN at $19.52 on that close, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CORN chain at a 52-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 CORN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $19.52 | long |
| Sell 1 | Call | $20.00 | $0.43 |
| Buy 1 | Put | $19.00 | $0.25 |
CORN collar risk and reward
- Net Premium / Debit
- -$1,934.50
- Max Profit (per contract)
- $65.50
- Max Loss (per contract)
- -$34.50
- Breakeven(s)
- $19.35
- Risk / Reward Ratio
- 1.899
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.
CORN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CORN. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$34.50 |
| $4.32 | -77.8% | -$34.50 |
| $8.64 | -55.7% | -$34.50 |
| $12.95 | -33.6% | -$34.50 |
| $17.27 | -11.5% | -$34.50 |
| $21.58 | +10.6% | +$65.50 |
| $25.90 | +32.7% | +$65.50 |
| $30.21 | +54.8% | +$65.50 |
| $34.53 | +76.9% | +$65.50 |
| $38.84 | +99.0% | +$65.50 |
When traders use collar on CORN
Collars on CORN hedge an existing long CORN 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.
CORN thesis for this collar
The market-implied 1-standard-deviation range for CORN extends from approximately $18.28 on the downside to $20.76 on the upside. A CORN collar hedges an existing long CORN 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 CORN IV rank near 5.16% 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 CORN at 22.20%. As a Financial Services name, CORN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CORN-specific events.
CORN 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. CORN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CORN alongside the broader basket even when CORN-specific fundamentals are unchanged. Always rebuild the position from current CORN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CORN?
- A collar on CORN is the collar strategy applied to CORN (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 CORN etf at $19.52 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed CORN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CORN 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 CORN collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.20%), the computed maximum profit is $65.50 per contract and the computed maximum loss is -$34.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CORN collar?
- The breakeven for the CORN collar priced on this page is roughly $19.35 at expiration, derived from the September 29, 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 CORN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CORN?
- Collars on CORN hedge an existing long CORN 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 CORN implied volatility affect this collar?
- CORN ATM IV is at 22.20% with IV rank near 5.16%, 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.