How are MAXI 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 MAXI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $27.50 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAXI collar?

The breakeven for the MAXI collar priced on this page is roughly $11.73 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 MAXI market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAXI implied volatility affect this collar?

MAXI ATM IV is at 53.10% with IV rank near 19.40%, 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.

MAXI Collar Strategy

MAXI (Simplify Bitcoin Strategy PLUS Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on NASDAQ.

The Simplify Bitcoin Strategy PLUS Income ETF (MAXI) seeks capital gains through an actively managed Bitcoin strategy. A risk-managed options overlay is added to provide income. The Bitcoin exposure will vary between 50% to 200% of the fund’s net assets, based on a proprietary technical model. Exposure may be gained through various instruments, including Bitcoin ETFs, futures, options, or swaps. The options income strategy will focus on selling put spreads on a variety of instruments, including equity indices as well as bond and commodity ETFs.* *The fund does not invest in bitcoin directly.

MAXI (Simplify Bitcoin Strategy PLUS Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $34.1M, a beta of 1.53 versus the broader market, a 52-week range of 9.2-36.34, average daily share volume of 29K, a public-listing history dating back to 2022. These structural characteristics shape how MAXI etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.53 indicates MAXI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MAXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MAXI?

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 MAXI snapshot

As of May 15, 2026, spot at $11.70, ATM IV 53.10%, IV rank 19.40%, expected move 15.22%. The collar on MAXI 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 MAXI specifically: IV regime affects collar pricing on both sides; compressed MAXI IV at 53.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.22% (roughly $1.78 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 MAXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAXI should anchor to the underlying notional of $11.70 per share and to the trader's directional view on MAXI etf.

MAXI collar setup

The MAXI 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 MAXI near $11.70, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAXI 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 MAXI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$11.70	long
Sell 1	Call	$12.00	$0.53
Buy 1	Put	$11.00	$0.55

MAXI collar risk and reward

Net Premium / Debit: -$1,172.50
Max Profit (per contract): $27.50
Max Loss (per contract): -$72.50
Breakeven(s): $11.73
Risk / Reward Ratio: 0.379

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.

MAXI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MAXI. 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	-99.9%	-$72.50
$2.60	-77.8%	-$72.50
$5.18	-55.7%	-$72.50
$7.77	-33.6%	-$72.50
$10.35	-11.5%	-$72.50
$12.94	+10.6%	+$27.50
$15.52	+32.7%	+$27.50
$18.11	+54.8%	+$27.50
$20.70	+76.9%	+$27.50
$23.28	+99.0%	+$27.50

When traders use collar on MAXI

Collars on MAXI hedge an existing long MAXI 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.

MAXI thesis for this collar

The market-implied 1-standard-deviation range for MAXI extends from approximately $9.92 on the downside to $13.48 on the upside. A MAXI collar hedges an existing long MAXI 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 MAXI IV rank near 19.40% 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 MAXI at 53.10%. As a Financial Services name, MAXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAXI-specific events.

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

Frequently asked questions

What is a collar on MAXI?: A collar on MAXI is the collar strategy applied to MAXI (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 MAXI etf trading near $11.70, the strikes shown on this page are snapped to the nearest listed MAXI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAXI 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 MAXI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $27.50 per contract and the computed maximum loss is -$72.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAXI collar?: The breakeven for the MAXI collar priced on this page is roughly $11.73 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 MAXI market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MAXI?: Collars on MAXI hedge an existing long MAXI 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 MAXI implied volatility affect this collar?: MAXI ATM IV is at 53.10% with IV rank near 19.40%, 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.