How are KIE 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 KIE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 19.50%), the computed maximum profit is $241.00 per contract and the computed maximum loss is -$259.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KIE collar?

The breakeven for the KIE collar priced on this page is roughly $56.59 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 KIE market-implied 1-standard-deviation expected move is approximately 5.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KIE implied volatility affect this collar?

KIE ATM IV is at 19.50% with IV rank near 1.83%, 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.

KIE Collar Strategy

KIE (State Street SPDR S&P Insurance ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Insurance ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Insurance Select Industry Index (the "Index")Seeks to provide exposure to the insurance segment of the S&P TMI, which comprises the following sub-industries: Insurance Brokers, Life & Health Insurance, Multi-Line Insurance, Property & Casualty Insurance, and ReinsuranceSeeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocksAllows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing

KIE (State Street SPDR S&P Insurance ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $446.7M, a beta of 0.63 versus the broader market, a 52-week range of 53.45-61.26, average daily share volume of 1.5M, a public-listing history dating back to 2005. These structural characteristics shape how KIE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.63 indicates KIE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KIE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on KIE?

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 KIE snapshot

As of May 15, 2026, spot at $56.55, ATM IV 19.50%, IV rank 1.83%, expected move 5.59%. The collar on KIE 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 KIE specifically: IV regime affects collar pricing on both sides; compressed KIE IV at 19.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.59% (roughly $3.16 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 KIE expiries trade a higher absolute premium for lower per-day decay. Position sizing on KIE should anchor to the underlying notional of $56.55 per share and to the trader's directional view on KIE etf.

KIE collar setup

The KIE 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 KIE near $56.55, the first option leg uses a $59.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KIE 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 KIE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$56.55	long
Sell 1	Call	$59.00	$0.51
Buy 1	Put	$54.00	$0.55

KIE collar risk and reward

Net Premium / Debit: -$5,659.00
Max Profit (per contract): $241.00
Max Loss (per contract): -$259.00
Breakeven(s): $56.59
Risk / Reward Ratio: 0.931

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.

KIE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on KIE. 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%	-$259.00
$12.51	-77.9%	-$259.00
$25.01	-55.8%	-$259.00
$37.52	-33.7%	-$259.00
$50.02	-11.5%	-$259.00
$62.52	+10.6%	+$241.00
$75.02	+32.7%	+$241.00
$87.53	+54.8%	+$241.00
$100.03	+76.9%	+$241.00
$112.53	+99.0%	+$241.00

When traders use collar on KIE

Collars on KIE hedge an existing long KIE 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.

KIE thesis for this collar

The market-implied 1-standard-deviation range for KIE extends from approximately $53.39 on the downside to $59.71 on the upside. A KIE collar hedges an existing long KIE 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 KIE IV rank near 1.83% 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 KIE at 19.50%. As a Financial Services name, KIE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KIE-specific events.

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

Frequently asked questions

What is a collar on KIE?: A collar on KIE is the collar strategy applied to KIE (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 KIE etf trading near $56.55, the strikes shown on this page are snapped to the nearest listed KIE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KIE 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 KIE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 19.50%), the computed maximum profit is $241.00 per contract and the computed maximum loss is -$259.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KIE collar?: The breakeven for the KIE collar priced on this page is roughly $56.59 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 KIE market-implied 1-standard-deviation expected move is approximately 5.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on KIE?: Collars on KIE hedge an existing long KIE 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 KIE implied volatility affect this collar?: KIE ATM IV is at 19.50% with IV rank near 1.83%, 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.