KTUP Collar Strategy
KTUP (ETF Opportunities Trust - T-REX 2X Long KTOS Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
KTUP primarily uses swap agreements to make bullish bets on the share price of Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS). Additionally, the fund may purchase FLEX call options on KTOS or invest directly in the stocks of KTOS. KTOS is an American technology company with manufacturing concentrations in weapons and military electronics. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in KTOS price through daily rebalancing. As a leveraged product, it is designed for short-term tactical use, not as a long-term investment vehicle. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
KTUP (ETF Opportunities Trust - T-REX 2X Long KTOS Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.3M, a beta of 1.84 versus the broader market, a 52-week range of 4.07-67.571, average daily share volume of 328K, a public-listing history dating back to 2025. These structural characteristics shape how KTUP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.84 indicates KTUP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KTUP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on KTUP?
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.
KTUP snapshot
As of September 29, 2026, spot at $4.17, ATM IV 103.30%, IV rank 12.30%, expected move 29.62%. The collar on KTUP below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 80-day expiry.
Why this collar structure on KTUP specifically: IV regime affects collar pricing on both sides; compressed KTUP IV at 103.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.62% (roughly $1.23 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KTUP expiries trade a higher absolute premium for lower per-day decay. Position sizing on KTUP should anchor to the underlying notional of $4.17 per share and to the trader's directional view on KTUP etf.
KTUP collar setup
The KTUP collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With KTUP at $4.17 on that close, the first option leg uses a $4.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KTUP chain at a 80-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 KTUP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.17 | long |
| Sell 1 | Call | $4.38 | N/A |
| Buy 1 | Put | $3.96 | N/A |
KTUP collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
KTUP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KTUP. 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.
When traders use collar on KTUP
Collars on KTUP hedge an existing long KTUP 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.
KTUP thesis for this collar
The market-implied 1-standard-deviation range for KTUP extends from approximately $2.94 on the downside to $5.40 on the upside. A KTUP collar hedges an existing long KTUP 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 KTUP IV rank near 12.30% 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 KTUP at 103.30%. As a Financial Services name, KTUP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KTUP-specific events.
KTUP 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. KTUP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KTUP alongside the broader basket even when KTUP-specific fundamentals are unchanged. Always rebuild the position from current KTUP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KTUP?
- A collar on KTUP is the collar strategy applied to KTUP (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 KTUP etf at $4.17 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed KTUP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KTUP 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 KTUP collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 103.30%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KTUP collar?
- The breakeven for the KTUP collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the September 29, 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 KTUP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 29.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KTUP?
- Collars on KTUP hedge an existing long KTUP 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 KTUP implied volatility affect this collar?
- KTUP ATM IV is at 103.30% with IV rank near 12.30%, 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.