How are NUG 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 NUG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 76.10%), the computed maximum profit is $62.00 per contract and the computed maximum loss is -$38.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NUG collar?

The breakeven for the NUG collar priced on this page is roughly $11.38 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 NUG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NUG implied volatility affect this collar?

NUG ATM IV is at 76.10% with IV rank near 7.97%, 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.

NUG Collar Strategy

NUG (Leverage Shares 2X Long NU Daily ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

NUG is an exchange-traded fund designed to provide leveraged exposure to the daily performance of Nu Holdings (NYSE: NU) stock. Its primary goal is to generate returns equivalent to 200% of NU's daily price movements, essentially doubling a bullish bet on the stock. This 2x daily leverage is maintained primarily through swap agreements and daily rebalancing, where the fund adjusts its holdings in response to NU's price fluctuations. In addition to swaps, the fund may also employ a synthetic forward options strategy, depending on market conditions and operational considerations, to achieve its objective. It's crucial to understand that NUG is structured as a short-term, tactical trading instrument, not a long-term investment. Due to the effects of compounding, holding the fund for longer than a single day can lead to returns deviating significantly from the targeted 2x daily multiplier.

NUG (Leverage Shares 2X Long NU Daily ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $238,228, a beta of 0.41 versus the broader market, a 52-week range of 6.4-20.43, average daily share volume of 12K, a public-listing history dating back to 2016. These structural characteristics shape how NUG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.41 indicates NUG 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 NUG?

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.

NUG snapshot

As of August 14, 2026, spot at $11.13, ATM IV 76.10%, IV rank 7.97%, expected move 21.82%. The collar on NUG 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 7-day expiry.

Why this collar structure on NUG specifically: IV regime affects collar pricing on both sides; compressed NUG IV at 76.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.82% (roughly $2.43 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NUG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NUG should anchor to the underlying notional of $11.13 per share and to the trader's directional view on NUG etf.

NUG collar setup

The NUG 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 NUG at $11.13 on that close, 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 NUG chain at a 7-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 NUG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$11.13	long
Sell 1	Call	$12.00	$0.32
Buy 1	Put	$11.00	$0.57

NUG collar risk and reward

Net Premium / Debit: -$1,138.00
Max Profit (per contract): $62.00
Max Loss (per contract): -$38.00
Breakeven(s): $11.38
Risk / Reward Ratio: 1.632

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.

NUG collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on NUG. 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	-99.9%	-$38.00
$2.47	-77.8%	-$38.00
$4.93	-55.7%	-$38.00
$7.39	-33.6%	-$38.00
$9.85	-11.5%	-$38.00
$12.31	+10.6%	+$62.00
$14.77	+32.7%	+$62.00
$17.23	+54.8%	+$62.00
$19.69	+76.9%	+$62.00
$22.15	+99.0%	+$62.00

When traders use collar on NUG

Collars on NUG hedge an existing long NUG 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.

NUG thesis for this collar

The market-implied 1-standard-deviation range for NUG extends from approximately $8.70 on the downside to $13.56 on the upside. A NUG collar hedges an existing long NUG 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 NUG IV rank near 7.97% 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 NUG at 76.10%. As a Financial Services name, NUG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NUG-specific events.

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

Frequently asked questions

What is a collar on NUG?: A collar on NUG is the collar strategy applied to NUG (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 NUG etf at $11.13 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NUG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NUG 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 NUG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 76.10%), the computed maximum profit is $62.00 per contract and the computed maximum loss is -$38.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NUG collar?: The breakeven for the NUG collar priced on this page is roughly $11.38 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 NUG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on NUG?: Collars on NUG hedge an existing long NUG 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 NUG implied volatility affect this collar?: NUG ATM IV is at 76.10% with IV rank near 7.97%, 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.