How are FDT 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 FDT collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $469.00 per contract and the computed maximum loss is -$431.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDT collar?

The breakeven for the FDT collar priced on this page is roughly $88.31 at expiration, derived from the November 13, 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.

How does current FDT implied volatility affect this collar?

Current FDT ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.

FDT Collar Strategy

FDT (First Trust Developed Markets ex-US AlphaDEX Fund), in the Financial Services sector, (Asset Management - Global industry), listed on NASDAQ.

The First Trust Developed Markets ex-US AlphaDEX Fund is an exchange-traded fund whose investment objective is to generally replicate the total return (price and yield) of the Nasdaq AlphaDEX Developed Markets Ex-US Index, prior to accounting for its own fees and expenses.

FDT (First Trust Developed Markets ex-US AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $854.4M, a beta of 1.10 versus the broader market, a 52-week range of 74.6-101.32, average daily share volume of 120K, a public-listing history dating back to 2011. These structural characteristics shape how FDT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.10 places FDT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FDT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on FDT?

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.

FDT snapshot

As of November 13, 2026, spot at $88.18. The collar on FDT below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this collar structure on FDT specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FDT is inferred from ATM IV alone. The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDT should anchor to the underlying notional of $88.18 per share and to the trader's directional view on FDT etf.

FDT collar setup

The FDT collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FDT at $88.18 on that close, the first option leg uses a $93.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDT chain at a 7-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 FDT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$88.18	long
Sell 1	Call	$93.00	$0.29
Buy 1	Put	$84.00	$0.42

FDT collar risk and reward

Net Premium / Debit: -$8,831.00
Max Profit (per contract): $469.00
Max Loss (per contract): -$431.00
Breakeven(s): $88.31
Risk / Reward Ratio: 1.088

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.

FDT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FDT. 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%	-$431.00
$19.51	-77.9%	-$431.00
$39.00	-55.8%	-$431.00
$58.50	-33.7%	-$431.00
$77.99	-11.6%	-$431.00
$97.49	+10.6%	+$469.00
$116.99	+32.7%	+$469.00
$136.48	+54.8%	+$469.00
$155.98	+76.9%	+$469.00
$175.47	+99.0%	+$469.00

When traders use collar on FDT

Collars on FDT hedge an existing long FDT 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.

FDT thesis for this collar

A FDT collar hedges an existing long FDT 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. As a Financial Services name, FDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDT-specific events.

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

Frequently asked questions

What is a collar on FDT?: A collar on FDT is the collar strategy applied to FDT (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 FDT etf at $88.18 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed FDT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FDT 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 FDT collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV the current ATM IV), the computed maximum profit is $469.00 per contract and the computed maximum loss is -$431.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDT collar?: The breakeven for the FDT collar priced on this page is roughly $88.31 at expiration, derived from the November 13, 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.
When should you consider a collar on FDT?: Collars on FDT hedge an existing long FDT 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 FDT implied volatility affect this collar?: Current FDT ATM IV is the current ATM IV; IV rank context is unavailable in the current snapshot.