How are RETL 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 RETL collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.80%), 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 RETL collar?

The breakeven for the RETL collar priced on this page is roughly $9.38 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 RETL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RETL implied volatility affect this collar?

RETL ATM IV is at 32.80% with IV rank near 0.00%, 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.

RETL Collar Strategy

RETL (Direxion Daily Retail Bull 3X Shares), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The fund invests at least 80% of its net assets in financial instruments, such as swap agreements, securities of the index, and ETFs that track the index, that, in combination, provide 3X daily leveraged exposure to the index, consistent with the fund's investment objective. The index is a modified equal-weighted index that is designed to measure performance of the stocks comprising the S&P Total Market Index that are classified in the GICS retail sub-industry. The fund is non-diversified.

RETL (Direxion Daily Retail Bull 3X Shares) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $33.8M, a beta of 3.46 versus the broader market, a 52-week range of 6.49-11.29, average daily share volume of 584K, a public-listing history dating back to 2010. These structural characteristics shape how RETL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.46 indicates RETL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. RETL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on RETL?

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.

RETL snapshot

As of August 14, 2026, spot at $9.23, ATM IV 32.80%, IV rank 0.00%, expected move 9.40%. The collar on RETL 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 35-day expiry.

Why this collar structure on RETL specifically: IV regime affects collar pricing on both sides; compressed RETL IV at 32.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.40% (roughly $0.87 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RETL expiries trade a higher absolute premium for lower per-day decay. Position sizing on RETL should anchor to the underlying notional of $9.23 per share and to the trader's directional view on RETL etf.

RETL collar setup

The RETL 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 RETL at $9.23 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RETL chain at a 35-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 RETL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$9.23	long
Sell 1	Call	$10.00	$0.35
Buy 1	Put	$9.00	$0.50

RETL collar risk and reward

Net Premium / Debit: -$938.00
Max Profit (per contract): $62.00
Max Loss (per contract): -$38.00
Breakeven(s): $9.38
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.

RETL collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RETL. 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
$2.05	-77.8%	-$38.00
$4.09	-55.7%	-$38.00
$6.13	-33.6%	-$38.00
$8.17	-11.5%	-$38.00
$10.21	+10.6%	+$62.00
$12.25	+32.7%	+$62.00
$14.29	+54.8%	+$62.00
$16.33	+76.9%	+$62.00
$18.37	+99.0%	+$62.00

When traders use collar on RETL

Collars on RETL hedge an existing long RETL 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.

RETL thesis for this collar

The market-implied 1-standard-deviation range for RETL extends from approximately $8.36 on the downside to $10.10 on the upside. A RETL collar hedges an existing long RETL 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 RETL IV rank near 0.00% 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 RETL at 32.80%. As a Financial Services name, RETL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RETL-specific events.

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

Frequently asked questions

What is a collar on RETL?: A collar on RETL is the collar strategy applied to RETL (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 RETL etf at $9.23 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RETL chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RETL 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 RETL collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.80%), 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 RETL collar?: The breakeven for the RETL collar priced on this page is roughly $9.38 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 RETL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RETL?: Collars on RETL hedge an existing long RETL 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 RETL implied volatility affect this collar?: RETL ATM IV is at 32.80% with IV rank near 0.00%, 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.