How are MAGS 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 MAGS collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is $361.50 per contract and the computed maximum loss is -$338.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAGS collar?

The breakeven for the MAGS collar priced on this page is roughly $68.39 at expiration, derived from the August 14, 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 MAGS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAGS implied volatility affect this collar?

MAGS ATM IV is at 20.80% with IV rank near 20.13%, 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.

MAGS Collar Strategy

MAGS (Roundhill Magnificent Seven ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

Listed Funds Trust - Roundhill Magnificent Seven ETF is an exchange traded fund launched by Listed Funds Trust. The fund is co-managed by Exchange Traded Concepts, LLC, Roundhill Financial Inc. It invests in public equity markets. The fund invests directly and through derivatives in stocks of companies operating across Information technology, semiconductors and semiconductor equipment, semiconductors, software and services, software, technology hardware and equipment, automotive, e-commerce discretionary and internet media & services sectors. The fund uses derivatives such as swaps, forwards to create its portfolio. The fund invests in growth and value stocks of large-cap companies.

MAGS (Roundhill Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.73B, a beta of 1.38 versus the broader market, a 52-week range of 55.085-71.16, average daily share volume of 4.2M, a public-listing history dating back to 2023, approximately 394 full-time employees. These structural characteristics shape how MAGS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.38 indicates MAGS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MAGS?

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.

MAGS snapshot

As of August 14, 2026, spot at $68.31, ATM IV 20.80%, IV rank 20.13%, expected move 5.96%. The collar on MAGS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this collar structure on MAGS specifically: IV regime affects collar pricing on both sides; compressed MAGS IV at 20.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.96% (roughly $4.07 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGS should anchor to the underlying notional of $68.31 per share and to the trader's directional view on MAGS etf.

MAGS collar setup

The MAGS collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MAGS at $68.31 on that close, the first option leg uses a $72.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGS chain at a 28-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 MAGS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$68.31	long
Sell 1	Call	$72.00	$0.38
Buy 1	Put	$65.00	$0.45

MAGS collar risk and reward

Net Premium / Debit: -$6,838.50
Max Profit (per contract): $361.50
Max Loss (per contract): -$338.50
Breakeven(s): $68.39
Risk / Reward Ratio: 1.068

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.

MAGS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MAGS. 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%	-$338.50
$15.11	-77.9%	-$338.50
$30.22	-55.8%	-$338.50
$45.32	-33.7%	-$338.50
$60.42	-11.5%	-$338.50
$75.52	+10.6%	+$361.50
$90.63	+32.7%	+$361.50
$105.73	+54.8%	+$361.50
$120.83	+76.9%	+$361.50
$135.93	+99.0%	+$361.50

When traders use collar on MAGS

Collars on MAGS hedge an existing long MAGS 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.

MAGS thesis for this collar

The market-implied 1-standard-deviation range for MAGS extends from approximately $64.24 on the downside to $72.38 on the upside. A MAGS collar hedges an existing long MAGS 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 MAGS IV rank near 20.13% 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 MAGS at 20.80%. As a Financial Services name, MAGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGS-specific events.

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

Frequently asked questions

What is a collar on MAGS?: A collar on MAGS is the collar strategy applied to MAGS (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 MAGS etf at $68.31 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MAGS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MAGS 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 MAGS collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is $361.50 per contract and the computed maximum loss is -$338.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAGS collar?: The breakeven for the MAGS collar priced on this page is roughly $68.39 at expiration, derived from the August 14, 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 MAGS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MAGS?: Collars on MAGS hedge an existing long MAGS 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 MAGS implied volatility affect this collar?: MAGS ATM IV is at 20.80% with IV rank near 20.13%, 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.