NFLU Collar Strategy
NFLU (T-REX 2X Long NFLX Daily Target ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
This fund primarily aims to provide investors with returns that are double the daily movement of NFLX. It achieves this by typically committing at least 80% of its overall assets (including funds acquired through borrowing) to swap agreements that mirror this leveraged daily exposure. The fund also has the flexibility to pursue its investment objective by directly purchasing NFLX common stock or by acquiring call options on NFLX. It is important to note that this fund operates on a non-diversified basis.
NFLU (T-REX 2X Long NFLX Daily Target ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $7.5M, a beta of 0.36 versus the broader market, a 52-week range of 16.33-74.49, average daily share volume of 191K, a public-listing history dating back to 2024. These structural characteristics shape how NFLU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.36 indicates NFLU has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on NFLU?
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 NFLU snapshot
As of June 29, 2026, spot at $17.67, ATM IV 106.00%, IV rank 83.80%, expected move 30.39%. The collar on NFLU 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 18-day expiry.
Why this collar structure on NFLU specifically: IV regime affects collar pricing on both sides; elevated NFLU IV at 106.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 30.39% (roughly $5.37 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NFLU expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFLU should anchor to the underlying notional of $17.67 per share and to the trader's directional view on NFLU etf.
NFLU collar setup
The NFLU 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 NFLU near $17.67, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFLU chain at a 18-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 NFLU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.67 | long |
| Sell 1 | Call | $19.00 | $1.18 |
| Buy 1 | Put | $17.00 | $1.20 |
NFLU collar risk and reward
- Net Premium / Debit
- -$1,769.50
- Max Profit (per contract)
- $130.50
- Max Loss (per contract)
- -$69.50
- Breakeven(s)
- $17.70
- Risk / Reward Ratio
- 1.878
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.
NFLU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NFLU. 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% | -$69.50 |
| $3.92 | -77.8% | -$69.50 |
| $7.82 | -55.7% | -$69.50 |
| $11.73 | -33.6% | -$69.50 |
| $15.63 | -11.5% | -$69.50 |
| $19.54 | +10.6% | +$130.50 |
| $23.44 | +32.7% | +$130.50 |
| $27.35 | +54.8% | +$130.50 |
| $31.26 | +76.9% | +$130.50 |
| $35.16 | +99.0% | +$130.50 |
When traders use collar on NFLU
Collars on NFLU hedge an existing long NFLU 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.
NFLU thesis for this collar
The market-implied 1-standard-deviation range for NFLU extends from approximately $12.30 on the downside to $23.04 on the upside. A NFLU collar hedges an existing long NFLU 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 NFLU IV rank near 83.80% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on NFLU at 106.00%. As a Financial Services name, NFLU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFLU-specific events.
NFLU 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. NFLU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFLU alongside the broader basket even when NFLU-specific fundamentals are unchanged. Always rebuild the position from current NFLU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NFLU?
- A collar on NFLU is the collar strategy applied to NFLU (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 NFLU etf trading near $17.67, the strikes shown on this page are snapped to the nearest listed NFLU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFLU 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 NFLU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 106.00%), the computed maximum profit is $130.50 per contract and the computed maximum loss is -$69.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NFLU collar?
- The breakeven for the NFLU collar priced on this page is roughly $17.70 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 NFLU market-implied 1-standard-deviation expected move is approximately 30.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NFLU?
- Collars on NFLU hedge an existing long NFLU 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 NFLU implied volatility affect this collar?
- NFLU ATM IV is at 106.00% with IV rank near 83.80%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.