How are ROKT 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 ROKT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.00%), the computed maximum profit is $445.00 per contract and the computed maximum loss is -$655.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ROKT collar?

The breakeven for the ROKT collar priced on this page is roughly $119.55 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 ROKT market-implied 1-standard-deviation expected move is approximately 8.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ROKT implied volatility affect this collar?

ROKT ATM IV is at 29.00% with IV rank near 3.06%, 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.

ROKT Collar Strategy

ROKT (State Street SPDR S&P Kensho Final Frontiers ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Kensho Final Frontiers ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho Final Frontiers Index (the "Index")Seeks to track an index utilizing artificial intelligence and a quantitative weighting methodology to capture companies whose products and services are driving innovation behind the exploration of the final frontiers, which includes the areas of outer space and the deep seaMay provide an effective way to pursue long-term growth potential by investing in a portfolio of companies involved in the expansion of human understanding and presence in outer space and in the oceans

ROKT (State Street SPDR S&P Kensho Final Frontiers ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $43.2M, a beta of 1.28 versus the broader market, a 52-week range of 56.61-119.57, average daily share volume of 30K, a public-listing history dating back to 2018. These structural characteristics shape how ROKT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places ROKT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ROKT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on ROKT?

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 ROKT snapshot

As of May 15, 2026, spot at $119.45, ATM IV 29.00%, IV rank 3.06%, expected move 8.31%. The collar on ROKT 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 34-day expiry.

Why this collar structure on ROKT specifically: IV regime affects collar pricing on both sides; compressed ROKT IV at 29.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.31% (roughly $9.93 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ROKT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROKT should anchor to the underlying notional of $119.45 per share and to the trader's directional view on ROKT etf.

ROKT collar setup

The ROKT 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 ROKT near $119.45, the first option leg uses a $124.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROKT chain at a 34-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 ROKT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$119.45	long
Sell 1	Call	$124.00	$2.08
Buy 1	Put	$113.00	$2.18

ROKT collar risk and reward

Net Premium / Debit: -$11,955.00
Max Profit (per contract): $445.00
Max Loss (per contract): -$655.00
Breakeven(s): $119.55
Risk / Reward Ratio: 0.679

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.

ROKT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ROKT. 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%	-$655.00
$26.42	-77.9%	-$655.00
$52.83	-55.8%	-$655.00
$79.24	-33.7%	-$655.00
$105.65	-11.6%	-$655.00
$132.06	+10.6%	+$445.00
$158.47	+32.7%	+$445.00
$184.88	+54.8%	+$445.00
$211.29	+76.9%	+$445.00
$237.70	+99.0%	+$445.00

When traders use collar on ROKT

Collars on ROKT hedge an existing long ROKT 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.

ROKT thesis for this collar

The market-implied 1-standard-deviation range for ROKT extends from approximately $109.52 on the downside to $129.38 on the upside. A ROKT collar hedges an existing long ROKT 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 ROKT IV rank near 3.06% 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 ROKT at 29.00%. As a Financial Services name, ROKT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROKT-specific events.

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

Frequently asked questions

What is a collar on ROKT?: A collar on ROKT is the collar strategy applied to ROKT (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 ROKT etf trading near $119.45, the strikes shown on this page are snapped to the nearest listed ROKT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ROKT 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 ROKT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.00%), the computed maximum profit is $445.00 per contract and the computed maximum loss is -$655.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ROKT collar?: The breakeven for the ROKT collar priced on this page is roughly $119.55 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 ROKT market-implied 1-standard-deviation expected move is approximately 8.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ROKT?: Collars on ROKT hedge an existing long ROKT 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 ROKT implied volatility affect this collar?: ROKT ATM IV is at 29.00% with IV rank near 3.06%, 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.