How are KGRN 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 KGRN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.30%), the computed maximum profit is $132.00 per contract and the computed maximum loss is -$168.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KGRN collar?

The breakeven for the KGRN collar priced on this page is roughly $23.68 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 KGRN market-implied 1-standard-deviation expected move is approximately 4.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KGRN implied volatility affect this collar?

KGRN ATM IV is at 17.30% with IV rank near 0.89%, 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.

KGRN Collar Strategy

KGRN (KraneShares MSCI China Clean Technology Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

This fund allocates at least 80% of its net assets to securities that are either components of its underlying index or possess similar economic characteristics. The reference index itself is designed to gauge the stock market performance of Chinese enterprises within the industrial, utility, real estate, and technology sectors that actively contribute to a more environmentally sound economy. This index employs a free-float adjusted market capitalization weighting methodology and incorporates a 10/40 Constraint. The fund is classified as non-diversified.

KGRN (KraneShares MSCI China Clean Technology Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $60.4M, a beta of 0.61 versus the broader market, a 52-week range of 23.001-32.949, average daily share volume of 20K, a public-listing history dating back to 2017. These structural characteristics shape how KGRN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.61 indicates KGRN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KGRN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on KGRN?

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 KGRN snapshot

As of June 30, 2026, spot at $23.67, ATM IV 17.30%, IV rank 0.89%, expected move 4.96%. The collar on KGRN 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 17-day expiry.

Why this collar structure on KGRN specifically: IV regime affects collar pricing on both sides; compressed KGRN IV at 17.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.96% (roughly $1.17 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KGRN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KGRN should anchor to the underlying notional of $23.67 per share and to the trader's directional view on KGRN etf.

KGRN collar setup

The KGRN 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 KGRN near $23.67, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KGRN chain at a 17-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 KGRN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$23.67	long
Sell 1	Call	$25.00	$0.18
Buy 1	Put	$22.00	$0.19

KGRN collar risk and reward

Net Premium / Debit: -$2,368.00
Max Profit (per contract): $132.00
Max Loss (per contract): -$168.00
Breakeven(s): $23.68
Risk / Reward Ratio: 0.786

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.

KGRN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on KGRN. 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%	-$168.00
$5.24	-77.9%	-$168.00
$10.47	-55.7%	-$168.00
$15.71	-33.6%	-$168.00
$20.94	-11.5%	-$168.00
$26.17	+10.6%	+$132.00
$31.40	+32.7%	+$132.00
$36.64	+54.8%	+$132.00
$41.87	+76.9%	+$132.00
$47.10	+99.0%	+$132.00

When traders use collar on KGRN

Collars on KGRN hedge an existing long KGRN 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.

KGRN thesis for this collar

The market-implied 1-standard-deviation range for KGRN extends from approximately $22.50 on the downside to $24.84 on the upside. A KGRN collar hedges an existing long KGRN 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 KGRN IV rank near 0.89% 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 KGRN at 17.30%. As a Financial Services name, KGRN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KGRN-specific events.

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

Frequently asked questions

What is a collar on KGRN?: A collar on KGRN is the collar strategy applied to KGRN (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 KGRN etf trading near $23.67, the strikes shown on this page are snapped to the nearest listed KGRN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KGRN 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 KGRN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.30%), the computed maximum profit is $132.00 per contract and the computed maximum loss is -$168.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KGRN collar?: The breakeven for the KGRN collar priced on this page is roughly $23.68 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 KGRN market-implied 1-standard-deviation expected move is approximately 4.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on KGRN?: Collars on KGRN hedge an existing long KGRN 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 KGRN implied volatility affect this collar?: KGRN ATM IV is at 17.30% with IV rank near 0.89%, 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.