NAIL Collar Strategy
NAIL (Direxion Daily Homebuilders & Supplies Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Homebuilders & Supplies Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the Dow Jones U.S. Select Home Construction Index. There is no guarantee the fund will achieve its stated investment objectives.
NAIL (Direxion Daily Homebuilders & Supplies Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $440.9M, a beta of 4.61 versus the broader market, a 52-week range of 33.26-99.006, average daily share volume of 1.8M, a public-listing history dating back to 2015. These structural characteristics shape how NAIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.61 indicates NAIL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. NAIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NAIL?
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 NAIL snapshot
As of May 15, 2026, spot at $31.54, ATM IV 99.54%, IV rank 46.83%, expected move 28.54%. The collar on NAIL 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 28-day expiry.
Why this collar structure on NAIL specifically: IV regime affects collar pricing on both sides; mid-range NAIL IV at 99.54% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.54% (roughly $9.00 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 NAIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on NAIL should anchor to the underlying notional of $31.54 per share and to the trader's directional view on NAIL etf.
NAIL collar setup
The NAIL 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 NAIL near $31.54, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NAIL 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 NAIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $31.54 | long |
| Sell 1 | Call | $33.00 | $3.33 |
| Buy 1 | Put | $30.00 | $2.43 |
NAIL collar risk and reward
- Net Premium / Debit
- -$3,064.00
- Max Profit (per contract)
- $236.00
- Max Loss (per contract)
- -$64.00
- Breakeven(s)
- $30.64
- Risk / Reward Ratio
- 3.687
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.
NAIL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NAIL. 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 | -100.0% | -$64.00 |
| $6.98 | -77.9% | -$64.00 |
| $13.96 | -55.8% | -$64.00 |
| $20.93 | -33.6% | -$64.00 |
| $27.90 | -11.5% | -$64.00 |
| $34.87 | +10.6% | +$236.00 |
| $41.85 | +32.7% | +$236.00 |
| $48.82 | +54.8% | +$236.00 |
| $55.79 | +76.9% | +$236.00 |
| $62.76 | +99.0% | +$236.00 |
When traders use collar on NAIL
Collars on NAIL hedge an existing long NAIL 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.
NAIL thesis for this collar
The market-implied 1-standard-deviation range for NAIL extends from approximately $22.54 on the downside to $40.54 on the upside. A NAIL collar hedges an existing long NAIL 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 NAIL IV rank near 46.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NAIL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, NAIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NAIL-specific events.
NAIL 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. NAIL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NAIL alongside the broader basket even when NAIL-specific fundamentals are unchanged. Always rebuild the position from current NAIL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NAIL?
- A collar on NAIL is the collar strategy applied to NAIL (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 NAIL etf trading near $31.54, the strikes shown on this page are snapped to the nearest listed NAIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NAIL 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 NAIL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 99.54%), the computed maximum profit is $236.00 per contract and the computed maximum loss is -$64.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NAIL collar?
- The breakeven for the NAIL collar priced on this page is roughly $30.64 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 NAIL market-implied 1-standard-deviation expected move is approximately 28.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NAIL?
- Collars on NAIL hedge an existing long NAIL 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 NAIL implied volatility affect this collar?
- NAIL ATM IV is at 99.54% with IV rank near 46.83%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.