KEMQ Collar Strategy
KEMQ (KraneShares Emerging Markets Consumer Technology ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in instruments in its underlying index or in instruments that have economic characteristics similar to those in the underlying index. The underlying index is composed of the equity securities of the 50 largest companies by market capitalization that derive the most revenue from an Emerging and Frontier Market and classified as in the consumer or technology sector.
KEMQ (KraneShares Emerging Markets Consumer Technology ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $34.3M, a beta of 1.28 versus the broader market, a 52-week range of 19.8-28.47, average daily share volume of 20K, a public-listing history dating back to 2017. These structural characteristics shape how KEMQ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places KEMQ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. KEMQ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on KEMQ?
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 KEMQ snapshot
As of May 13, 2026, spot at $26.09, ATM IV 30.20%, IV rank 9.22%, expected move 8.66%. The collar on KEMQ 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 KEMQ specifically: IV regime affects collar pricing on both sides; compressed KEMQ IV at 30.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.66% (roughly $2.26 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 KEMQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on KEMQ should anchor to the underlying notional of $26.09 per share and to the trader's directional view on KEMQ etf.
KEMQ collar setup
The KEMQ 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 KEMQ near $26.09, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KEMQ 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 KEMQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.09 | long |
| Sell 1 | Call | $27.00 | $0.44 |
| Buy 1 | Put | $25.00 | $0.97 |
KEMQ collar risk and reward
- Net Premium / Debit
- -$2,662.00
- Max Profit (per contract)
- $38.00
- Max Loss (per contract)
- -$162.00
- Breakeven(s)
- $26.62
- Risk / Reward Ratio
- 0.235
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.
KEMQ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KEMQ. 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% | -$162.00 |
| $5.78 | -77.9% | -$162.00 |
| $11.55 | -55.7% | -$162.00 |
| $17.31 | -33.6% | -$162.00 |
| $23.08 | -11.5% | -$162.00 |
| $28.85 | +10.6% | +$38.00 |
| $34.62 | +32.7% | +$38.00 |
| $40.38 | +54.8% | +$38.00 |
| $46.15 | +76.9% | +$38.00 |
| $51.92 | +99.0% | +$38.00 |
When traders use collar on KEMQ
Collars on KEMQ hedge an existing long KEMQ 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.
KEMQ thesis for this collar
The market-implied 1-standard-deviation range for KEMQ extends from approximately $23.83 on the downside to $28.35 on the upside. A KEMQ collar hedges an existing long KEMQ 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 KEMQ IV rank near 9.22% 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 KEMQ at 30.20%. As a Financial Services name, KEMQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KEMQ-specific events.
KEMQ 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. KEMQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KEMQ alongside the broader basket even when KEMQ-specific fundamentals are unchanged. Always rebuild the position from current KEMQ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KEMQ?
- A collar on KEMQ is the collar strategy applied to KEMQ (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 KEMQ etf trading near $26.09, the strikes shown on this page are snapped to the nearest listed KEMQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KEMQ 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 KEMQ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.20%), the computed maximum profit is $38.00 per contract and the computed maximum loss is -$162.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KEMQ collar?
- The breakeven for the KEMQ collar priced on this page is roughly $26.62 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 KEMQ market-implied 1-standard-deviation expected move is approximately 8.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KEMQ?
- Collars on KEMQ hedge an existing long KEMQ 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 KEMQ implied volatility affect this collar?
- KEMQ ATM IV is at 30.20% with IV rank near 9.22%, 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.