KRBN Collar Strategy
KRBN (KraneShares Global Carbon Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund's manager endeavors to track the performance of an underlying index by holding carbon credit futures that are largely equivalent to its constituents. This benchmark specifically measures the returns of a selection of readily tradable carbon credit futures. A defining characteristic of these futures is their stipulation for the actual delivery of emission permits, which are generated within "cap and trade" regulatory frameworks. This investment vehicle maintains a concentrated portfolio.
KRBN (KraneShares Global Carbon Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $144.8M, a beta of 0.13 versus the broader market, a 52-week range of 27-36.5, average daily share volume of 17K, a public-listing history dating back to 2020. These structural characteristics shape how KRBN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.13 indicates KRBN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. KRBN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on KRBN?
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 KRBN snapshot
As of June 30, 2026, spot at $33.22, ATM IV 48.30%, IV rank 58.70%, expected move 13.85%. The collar on KRBN 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 KRBN specifically: IV regime affects collar pricing on both sides; mid-range KRBN IV at 48.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.85% (roughly $4.60 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 KRBN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRBN should anchor to the underlying notional of $33.22 per share and to the trader's directional view on KRBN etf.
KRBN collar setup
The KRBN 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 KRBN near $33.22, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRBN 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 KRBN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.22 | long |
| Sell 1 | Call | $35.00 | $0.72 |
| Buy 1 | Put | $32.00 | $0.82 |
KRBN collar risk and reward
- Net Premium / Debit
- -$3,332.00
- Max Profit (per contract)
- $168.00
- Max Loss (per contract)
- -$132.00
- Breakeven(s)
- $33.32
- Risk / Reward Ratio
- 1.273
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.
KRBN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KRBN. 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% | -$132.00 |
| $7.35 | -77.9% | -$132.00 |
| $14.70 | -55.8% | -$132.00 |
| $22.04 | -33.6% | -$132.00 |
| $29.39 | -11.5% | -$132.00 |
| $36.73 | +10.6% | +$168.00 |
| $44.07 | +32.7% | +$168.00 |
| $51.42 | +54.8% | +$168.00 |
| $58.76 | +76.9% | +$168.00 |
| $66.11 | +99.0% | +$168.00 |
When traders use collar on KRBN
Collars on KRBN hedge an existing long KRBN 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.
KRBN thesis for this collar
The market-implied 1-standard-deviation range for KRBN extends from approximately $28.62 on the downside to $37.82 on the upside. A KRBN collar hedges an existing long KRBN 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 KRBN IV rank near 58.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on KRBN should anchor more to the directional view and the expected-move geometry. As a Financial Services name, KRBN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRBN-specific events.
KRBN 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. KRBN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRBN alongside the broader basket even when KRBN-specific fundamentals are unchanged. Always rebuild the position from current KRBN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KRBN?
- A collar on KRBN is the collar strategy applied to KRBN (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 KRBN etf trading near $33.22, the strikes shown on this page are snapped to the nearest listed KRBN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRBN 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 KRBN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.30%), the computed maximum profit is $168.00 per contract and the computed maximum loss is -$132.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KRBN collar?
- The breakeven for the KRBN collar priced on this page is roughly $33.32 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 KRBN market-implied 1-standard-deviation expected move is approximately 13.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KRBN?
- Collars on KRBN hedge an existing long KRBN 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 KRBN implied volatility affect this collar?
- KRBN ATM IV is at 48.30% with IV rank near 58.70%, 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.