How are QBTZ 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 QBTZ collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 137.10%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$114.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a QBTZ collar?

The breakeven for the QBTZ collar priced on this page is roughly $17.15 at expiration, derived from the September 29, 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 QBTZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 39.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current QBTZ implied volatility affect this collar?

QBTZ ATM IV is at 137.10% with IV rank near 25.01%, 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.

QBTZ Collar Strategy

QBTZ (Defiance Daily Target 2X Short QBTS ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

This fund's core strategy dictates that at least 80% of its net assets, combined with any borrowed capital utilized for investment, will be deployed into financial instruments. These instruments are specifically engineered to deliver daily investment outcomes that are two times the inverse (or opposite) of the underlying benchmark's daily performance. For the purpose of assessing compliance with this 80% allocation policy, derivative holdings are calculated based on their full notional value. Investors should also note that the fund operates as a non-diversified investment vehicle.

QBTZ (Defiance Daily Target 2X Short QBTS ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $7.3M, a beta of -8.43 versus the broader market, a 52-week range of 12.99-484.2, average daily share volume of 829K, a public-listing history dating back to 2025. These structural characteristics shape how QBTZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -8.43 indicates QBTZ 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 QBTZ?

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.

QBTZ snapshot

As of September 29, 2026, spot at $17.22, ATM IV 137.10%, IV rank 25.01%, expected move 39.31%. The collar on QBTZ below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this collar structure on QBTZ specifically: IV regime affects collar pricing on both sides; compressed QBTZ IV at 137.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 39.31% (roughly $6.77 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated QBTZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on QBTZ should anchor to the underlying notional of $17.22 per share and to the trader's directional view on QBTZ etf.

QBTZ collar setup

The QBTZ collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With QBTZ at $17.22 on that close, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed QBTZ chain at a 17-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 QBTZ shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$17.22	long
Sell 1	Call	$18.00	$1.58
Buy 1	Put	$16.00	$1.50

QBTZ collar risk and reward

Net Premium / Debit: -$1,714.50
Max Profit (per contract): $85.50
Max Loss (per contract): -$114.50
Breakeven(s): $17.15
Risk / Reward Ratio: 0.747

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.

QBTZ collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on QBTZ. 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%	-$114.50
$3.82	-77.8%	-$114.50
$7.62	-55.7%	-$114.50
$11.43	-33.6%	-$114.50
$15.24	-11.5%	-$114.50
$19.04	+10.6%	+$85.50
$22.85	+32.7%	+$85.50
$26.65	+54.8%	+$85.50
$30.46	+76.9%	+$85.50
$34.27	+99.0%	+$85.50

When traders use collar on QBTZ

Collars on QBTZ hedge an existing long QBTZ 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.

QBTZ thesis for this collar

The market-implied 1-standard-deviation range for QBTZ extends from approximately $10.45 on the downside to $23.99 on the upside. A QBTZ collar hedges an existing long QBTZ 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 QBTZ IV rank near 25.01% 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 QBTZ at 137.10%. As a Financial Services name, QBTZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to QBTZ-specific events.

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

Frequently asked questions

What is a collar on QBTZ?: A collar on QBTZ is the collar strategy applied to QBTZ (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 QBTZ etf at $17.22 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed QBTZ chain strike and the premiums come straight from that session's bid/ask midpoint.
How are QBTZ 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 QBTZ collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 137.10%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$114.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a QBTZ collar?: The breakeven for the QBTZ collar priced on this page is roughly $17.15 at expiration, derived from the September 29, 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 QBTZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 39.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on QBTZ?: Collars on QBTZ hedge an existing long QBTZ 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 QBTZ implied volatility affect this collar?: QBTZ ATM IV is at 137.10% with IV rank near 25.01%, 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.