KORU Collar Strategy
KORU (Direxion Daily MSCI South Korea Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily MSCI South Korea Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the MSCI Korea 25/50 Index. There is no guarantee that the fund will achieve its stated investment objective.
KORU (Direxion Daily MSCI South Korea Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $814.6M, a beta of 5.12 versus the broader market, a 52-week range of 44.71-1007.8, average daily share volume of 1.1M, a public-listing history dating back to 2013. These structural characteristics shape how KORU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 5.12 indicates KORU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KORU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on KORU?
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 KORU snapshot
As of May 15, 2026, spot at $753.00, ATM IV 187.30%, IV rank 59.71%, expected move 53.70%. The collar on KORU 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 KORU specifically: IV regime affects collar pricing on both sides; mid-range KORU IV at 187.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 53.70% (roughly $404.34 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 KORU expiries trade a higher absolute premium for lower per-day decay. Position sizing on KORU should anchor to the underlying notional of $753.00 per share and to the trader's directional view on KORU etf.
KORU collar setup
The KORU 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 KORU near $753.00, the first option leg uses a $790.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KORU 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 KORU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $753.00 | long |
| Sell 1 | Call | $790.00 | $155.30 |
| Buy 1 | Put | $715.00 | $147.70 |
KORU collar risk and reward
- Net Premium / Debit
- -$74,540.00
- Max Profit (per contract)
- $4,460.00
- Max Loss (per contract)
- -$3,040.00
- Breakeven(s)
- $745.40
- Risk / Reward Ratio
- 1.467
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.
KORU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KORU. 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% | -$3,040.00 |
| $166.50 | -77.9% | -$3,040.00 |
| $332.99 | -55.8% | -$3,040.00 |
| $499.48 | -33.7% | -$3,040.00 |
| $665.98 | -11.6% | -$3,040.00 |
| $832.47 | +10.6% | +$4,460.00 |
| $998.96 | +32.7% | +$4,460.00 |
| $1,165.45 | +54.8% | +$4,460.00 |
| $1,331.94 | +76.9% | +$4,460.00 |
| $1,498.43 | +99.0% | +$4,460.00 |
When traders use collar on KORU
Collars on KORU hedge an existing long KORU 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.
KORU thesis for this collar
The market-implied 1-standard-deviation range for KORU extends from approximately $348.66 on the downside to $1,157.34 on the upside. A KORU collar hedges an existing long KORU 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 KORU IV rank near 59.71% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on KORU should anchor more to the directional view and the expected-move geometry. As a Financial Services name, KORU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KORU-specific events.
KORU 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. KORU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KORU alongside the broader basket even when KORU-specific fundamentals are unchanged. Always rebuild the position from current KORU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KORU?
- A collar on KORU is the collar strategy applied to KORU (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 KORU etf trading near $753.00, the strikes shown on this page are snapped to the nearest listed KORU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KORU 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 KORU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 187.30%), the computed maximum profit is $4,460.00 per contract and the computed maximum loss is -$3,040.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KORU collar?
- The breakeven for the KORU collar priced on this page is roughly $745.40 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 KORU market-implied 1-standard-deviation expected move is approximately 53.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KORU?
- Collars on KORU hedge an existing long KORU 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 KORU implied volatility affect this collar?
- KORU ATM IV is at 187.30% with IV rank near 59.71%, 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.