How are METU 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 METU collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 64.20%), the computed maximum profit is $145.00 per contract and the computed maximum loss is -$105.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a METU collar?

The breakeven for the METU collar priced on this page is roughly $21.05 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 METU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current METU implied volatility affect this collar?

METU ATM IV is at 64.20% with IV rank near 25.61%, 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.

METU Collar Strategy

METU (Direxion Daily META Bull 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The Direxion Daily META Bull 2X Shares and Direxion Daily META Bear 1X Shares are constructed to deliver specific daily investment outcomes. The Bull 2X ETF is designed to provide daily returns equivalent to 200% of the positive performance of Meta Platforms, Inc. (NASDAQ: META) common stock. Conversely, the Bear 1X ETF aims to reflect 100% of the inverse, or opposite, daily movement of Meta's shares. These targets are set before the deduction of any fees or operational expenses.

METU (Direxion Daily META Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $439.7M, a beta of 3.23 versus the broader market, a 52-week range of 16.85-51.2, average daily share volume of 5.4M, a public-listing history dating back to 2024. These structural characteristics shape how METU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.23 indicates METU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. METU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on METU?

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.

METU snapshot

As of August 14, 2026, spot at $21.25, ATM IV 64.20%, IV rank 25.61%, expected move 18.41%. The collar on METU 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 METU specifically: IV regime affects collar pricing on both sides; compressed METU IV at 64.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.41% (roughly $3.91 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 METU expiries trade a higher absolute premium for lower per-day decay. Position sizing on METU should anchor to the underlying notional of $21.25 per share and to the trader's directional view on METU etf.

METU collar setup

The METU 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 METU at $21.25 on that close, the first option leg uses a $22.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed METU 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 METU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$21.25	long
Sell 1	Call	$22.50	$1.10
Buy 1	Put	$20.00	$0.90

METU collar risk and reward

Net Premium / Debit: -$2,105.00
Max Profit (per contract): $145.00
Max Loss (per contract): -$105.00
Breakeven(s): $21.05
Risk / Reward Ratio: 1.381

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.

METU collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on METU. 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%	-$105.00
$4.71	-77.8%	-$105.00
$9.40	-55.7%	-$105.00
$14.10	-33.6%	-$105.00
$18.80	-11.5%	-$105.00
$23.50	+10.6%	+$145.00
$28.19	+32.7%	+$145.00
$32.89	+54.8%	+$145.00
$37.59	+76.9%	+$145.00
$42.29	+99.0%	+$145.00

When traders use collar on METU

Collars on METU hedge an existing long METU 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.

METU thesis for this collar

The market-implied 1-standard-deviation range for METU extends from approximately $17.34 on the downside to $25.16 on the upside. A METU collar hedges an existing long METU 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 METU IV rank near 25.61% 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 METU at 64.20%. As a Financial Services name, METU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to METU-specific events.

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

Frequently asked questions

What is a collar on METU?: A collar on METU is the collar strategy applied to METU (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 METU etf at $21.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed METU chain strike and the premiums come straight from that session's bid/ask midpoint.
How are METU 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 METU collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 64.20%), the computed maximum profit is $145.00 per contract and the computed maximum loss is -$105.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a METU collar?: The breakeven for the METU collar priced on this page is roughly $21.05 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 METU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on METU?: Collars on METU hedge an existing long METU 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 METU implied volatility affect this collar?: METU ATM IV is at 64.20% with IV rank near 25.61%, 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.