How are FITE 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 FITE collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.00%), the computed maximum profit is $550.00 per contract and the computed maximum loss is -$650.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FITE collar?

The breakeven for the FITE collar priced on this page is roughly $119.50 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 FITE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FITE implied volatility affect this collar?

FITE ATM IV is at 25.00% with IV rank near 3.57%, 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.

FITE Collar Strategy

FITE (State Street SPDR S&P Kensho Future Security ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The State Street SPDR S&P Kensho Future Security ETF (FITE) endeavors to achieve investment returns that closely align with the total return performance of the S&P Kensho Future Security Index, before any fees and expenses are factored in. This underlying index identifies and tracks companies that are leading innovation in the realm of future security. This includes critical sectors such as cybersecurity, sophisticated border protection, and various military applications like robotics, drone technology, space exploration, wearable devices, and virtual or augmented reality. Essentially, FITE offers a compelling opportunity to invest in a collection of companies shaping the future of national defense and modern warfare.

FITE (State Street SPDR S&P Kensho Future Security ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $123.7M, a beta of 1.32 versus the broader market, a 52-week range of 76.07-120.4, average daily share volume of 9K, a public-listing history dating back to 2017. These structural characteristics shape how FITE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates FITE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FITE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on FITE?

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.

FITE snapshot

As of August 14, 2026, spot at $119.38, ATM IV 25.00%, IV rank 3.57%, expected move 7.17%. The collar on FITE 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 FITE specifically: IV regime affects collar pricing on both sides; compressed FITE IV at 25.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.17% (roughly $8.56 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 FITE expiries trade a higher absolute premium for lower per-day decay. Position sizing on FITE should anchor to the underlying notional of $119.38 per share and to the trader's directional view on FITE etf.

FITE collar setup

The FITE 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 FITE at $119.38 on that close, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FITE 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 FITE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$119.38	long
Sell 1	Call	$125.00	$1.40
Buy 1	Put	$113.00	$1.52

FITE collar risk and reward

Net Premium / Debit: -$11,950.00
Max Profit (per contract): $550.00
Max Loss (per contract): -$650.00
Breakeven(s): $119.50
Risk / Reward Ratio: 0.846

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.

FITE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FITE. 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%	-$650.00
$26.40	-77.9%	-$650.00
$52.80	-55.8%	-$650.00
$79.19	-33.7%	-$650.00
$105.59	-11.6%	-$650.00
$131.98	+10.6%	+$550.00
$158.38	+32.7%	+$550.00
$184.77	+54.8%	+$550.00
$211.17	+76.9%	+$550.00
$237.56	+99.0%	+$550.00

When traders use collar on FITE

Collars on FITE hedge an existing long FITE 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.

FITE thesis for this collar

The market-implied 1-standard-deviation range for FITE extends from approximately $110.82 on the downside to $127.94 on the upside. A FITE collar hedges an existing long FITE 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 FITE IV rank near 3.57% 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 FITE at 25.00%. As a Financial Services name, FITE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FITE-specific events.

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

Frequently asked questions

What is a collar on FITE?: A collar on FITE is the collar strategy applied to FITE (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 FITE etf at $119.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FITE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FITE 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 FITE collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.00%), the computed maximum profit is $550.00 per contract and the computed maximum loss is -$650.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FITE collar?: The breakeven for the FITE collar priced on this page is roughly $119.50 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 FITE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on FITE?: Collars on FITE hedge an existing long FITE 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 FITE implied volatility affect this collar?: FITE ATM IV is at 25.00% with IV rank near 3.57%, 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.