How are MAGX 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 MAGX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.30%), the computed maximum profit is $114.00 per contract and the computed maximum loss is -$386.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAGX collar?

The breakeven for the MAGX collar priced on this page is roughly $52.86 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 MAGX market-implied 1-standard-deviation expected move is approximately 14.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAGX implied volatility affect this collar?

MAGX ATM IV is at 49.30% with IV rank near 21.82%, 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.

MAGX Collar Strategy

MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.

The Roundhill Daily 2X Long Magnificent Seven ETF, or "the Fund," is engineered to achieve daily investment results that are twice (2X) the performance of the Roundhill Magnificent Seven ETF (the "Magnificent Seven ETF"), prior to accounting for fees and expenses. Critically, this objective is designed to be met only within a single trading day. As a result, the Fund presents a higher risk profile compared to non-leveraged alternatives, given its strategy to amplify daily market fluctuations. For holding periods extending beyond a single day, the Fund's overall returns will be determined by the cumulative effect of its daily compounded performance. It is highly probable that its performance over such extended intervals will diverge significantly from a straightforward two-fold return of the Magnificent Seven ETF's performance, even before factoring in expenses and charges.

MAGX (Roundhill Investments - Daily 2X Long Magnificent Seven ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $41.6M, a beta of 2.93 versus the broader market, a 52-week range of 38.72-63.47, average daily share volume of 117K, a public-listing history dating back to 2024. These structural characteristics shape how MAGX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.93 indicates MAGX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAGX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MAGX?

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 MAGX snapshot

As of June 30, 2026, spot at $51.36, ATM IV 49.30%, IV rank 21.82%, expected move 14.13%. The collar on MAGX 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 MAGX specifically: IV regime affects collar pricing on both sides; compressed MAGX IV at 49.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.13% (roughly $7.26 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 MAGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAGX should anchor to the underlying notional of $51.36 per share and to the trader's directional view on MAGX etf.

MAGX collar setup

The MAGX 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 MAGX near $51.36, the first option leg uses a $54.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAGX 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 MAGX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$51.36	long
Sell 1	Call	$54.00	$0.80
Buy 1	Put	$49.00	$2.30

MAGX collar risk and reward

Net Premium / Debit: -$5,286.00
Max Profit (per contract): $114.00
Max Loss (per contract): -$386.00
Breakeven(s): $52.86
Risk / Reward Ratio: 0.295

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.

MAGX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MAGX. 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%	-$386.00
$11.36	-77.9%	-$386.00
$22.72	-55.8%	-$386.00
$34.07	-33.7%	-$386.00
$45.43	-11.5%	-$386.00
$56.78	+10.6%	+$114.00
$68.14	+32.7%	+$114.00
$79.49	+54.8%	+$114.00
$90.85	+76.9%	+$114.00
$102.20	+99.0%	+$114.00

When traders use collar on MAGX

Collars on MAGX hedge an existing long MAGX 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.

MAGX thesis for this collar

The market-implied 1-standard-deviation range for MAGX extends from approximately $44.10 on the downside to $58.62 on the upside. A MAGX collar hedges an existing long MAGX 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 MAGX IV rank near 21.82% 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 MAGX at 49.30%. As a Financial Services name, MAGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAGX-specific events.

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

Frequently asked questions

What is a collar on MAGX?: A collar on MAGX is the collar strategy applied to MAGX (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 MAGX etf trading near $51.36, the strikes shown on this page are snapped to the nearest listed MAGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAGX 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 MAGX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.30%), the computed maximum profit is $114.00 per contract and the computed maximum loss is -$386.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAGX collar?: The breakeven for the MAGX collar priced on this page is roughly $52.86 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 MAGX market-implied 1-standard-deviation expected move is approximately 14.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MAGX?: Collars on MAGX hedge an existing long MAGX 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 MAGX implied volatility affect this collar?: MAGX ATM IV is at 49.30% with IV rank near 21.82%, 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.