JDST Collar Strategy
JDST (Direxion Daily Junior Gold Miners Index Bear 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Junior Gold Miners Index Bull and Bear 2X ETFs seek daily investment results, before fees and expenses, of 200%, or 200% of the inverse (or opposite), of the performance of the MVIS Global Junior Gold Miners Index. There is no guarantee these funds will achieve their stated investment objectives.
JDST (Direxion Daily Junior Gold Miners Index Bear 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $25.4M, a beta of -0.80 versus the broader market, a 52-week range of 22.8-281, average daily share volume of 984K, a public-listing history dating back to 2013. These structural characteristics shape how JDST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.80 indicates JDST has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. JDST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on JDST?
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.
Current JDST snapshot
As of May 15, 2026, spot at $33.51, ATM IV 101.10%, IV rank 36.19%, expected move 28.98%. The collar on JDST below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this collar structure on JDST specifically: IV regime affects collar pricing on both sides; mid-range JDST IV at 101.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.98% (roughly $9.71 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated JDST expiries trade a higher absolute premium for lower per-day decay. Position sizing on JDST should anchor to the underlying notional of $33.51 per share and to the trader's directional view on JDST etf.
JDST collar setup
The JDST collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With JDST near $33.51, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JDST chain at a 34-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 JDST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.51 | long |
| Sell 1 | Call | $35.00 | $3.45 |
| Buy 1 | Put | $32.00 | $3.50 |
JDST collar risk and reward
- Net Premium / Debit
- -$3,356.00
- Max Profit (per contract)
- $144.00
- Max Loss (per contract)
- -$156.00
- Breakeven(s)
- $33.56
- Risk / Reward Ratio
- 0.923
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.
JDST collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on JDST. 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 | -100.0% | -$156.00 |
| $7.42 | -77.9% | -$156.00 |
| $14.83 | -55.8% | -$156.00 |
| $22.23 | -33.6% | -$156.00 |
| $29.64 | -11.5% | -$156.00 |
| $37.05 | +10.6% | +$144.00 |
| $44.46 | +32.7% | +$144.00 |
| $51.87 | +54.8% | +$144.00 |
| $59.28 | +76.9% | +$144.00 |
| $66.68 | +99.0% | +$144.00 |
When traders use collar on JDST
Collars on JDST hedge an existing long JDST 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.
JDST thesis for this collar
The market-implied 1-standard-deviation range for JDST extends from approximately $23.80 on the downside to $43.22 on the upside. A JDST collar hedges an existing long JDST 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 JDST IV rank near 36.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on JDST should anchor more to the directional view and the expected-move geometry. As a Financial Services name, JDST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JDST-specific events.
JDST 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. JDST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JDST alongside the broader basket even when JDST-specific fundamentals are unchanged. Always rebuild the position from current JDST chain quotes before placing a trade.
Frequently asked questions
- What is a collar on JDST?
- A collar on JDST is the collar strategy applied to JDST (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 JDST etf trading near $33.51, the strikes shown on this page are snapped to the nearest listed JDST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are JDST 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 JDST collar priced from the end-of-day chain at a 30-day expiry (ATM IV 101.10%), the computed maximum profit is $144.00 per contract and the computed maximum loss is -$156.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a JDST collar?
- The breakeven for the JDST collar priced on this page is roughly $33.56 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current JDST market-implied 1-standard-deviation expected move is approximately 28.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on JDST?
- Collars on JDST hedge an existing long JDST 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 JDST implied volatility affect this collar?
- JDST ATM IV is at 101.10% with IV rank near 36.19%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.