How are KEMX 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 KEMX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $264.00 per contract and the computed maximum loss is -$236.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KEMX collar?

The breakeven for the KEMX collar priced on this page is roughly $50.36 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 KEMX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KEMX implied volatility affect this collar?

KEMX ATM IV is at 37.90% with IV rank near 23.23%, 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.

KEMX Collar Strategy

KEMX (KraneShares MSCI Emerging Markets ex China Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

This fund typically commits at least 80% of its investable assets (which includes any funds borrowed for investment purposes) to holdings that are either components of its reference index or possess similar economic characteristics. This reference index is a free-float market capitalization-weighted measure, constructed to monitor the equity market performance of mid- and large-sized corporations situated in emerging market nations, explicitly excluding China.

KEMX (KraneShares MSCI Emerging Markets ex China Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $137.8M, a beta of 1.33 versus the broader market, a 52-week range of 32.12-54.905, average daily share volume of 12K, a public-listing history dating back to 2019. These structural characteristics shape how KEMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.33 indicates KEMX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KEMX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on KEMX?

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.

KEMX snapshot

As of August 14, 2026, spot at $50.59, ATM IV 37.90%, IV rank 23.23%, expected move 10.87%. The collar on KEMX 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 KEMX specifically: IV regime affects collar pricing on both sides; compressed KEMX IV at 37.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.87% (roughly $5.50 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 KEMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KEMX should anchor to the underlying notional of $50.59 per share and to the trader's directional view on KEMX etf.

KEMX collar setup

The KEMX 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 KEMX at $50.59 on that close, the first option leg uses a $53.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KEMX 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 KEMX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$50.59	long
Sell 1	Call	$53.00	$1.48
Buy 1	Put	$48.00	$1.25

KEMX collar risk and reward

Net Premium / Debit: -$5,036.00
Max Profit (per contract): $264.00
Max Loss (per contract): -$236.00
Breakeven(s): $50.36
Risk / Reward Ratio: 1.119

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.

KEMX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on KEMX. 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%	-$236.00
$11.19	-77.9%	-$236.00
$22.38	-55.8%	-$236.00
$33.56	-33.7%	-$236.00
$44.75	-11.5%	-$236.00
$55.93	+10.6%	+$264.00
$67.12	+32.7%	+$264.00
$78.30	+54.8%	+$264.00
$89.49	+76.9%	+$264.00
$100.67	+99.0%	+$264.00

When traders use collar on KEMX

Collars on KEMX hedge an existing long KEMX 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.

KEMX thesis for this collar

The market-implied 1-standard-deviation range for KEMX extends from approximately $45.09 on the downside to $56.09 on the upside. A KEMX collar hedges an existing long KEMX 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 KEMX IV rank near 23.23% 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 KEMX at 37.90%. As a Financial Services name, KEMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KEMX-specific events.

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

Frequently asked questions

What is a collar on KEMX?: A collar on KEMX is the collar strategy applied to KEMX (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 KEMX etf at $50.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KEMX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are KEMX 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 KEMX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $264.00 per contract and the computed maximum loss is -$236.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KEMX collar?: The breakeven for the KEMX collar priced on this page is roughly $50.36 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 KEMX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on KEMX?: Collars on KEMX hedge an existing long KEMX 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 KEMX implied volatility affect this collar?: KEMX ATM IV is at 37.90% with IV rank near 23.23%, 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.