How are SJNK 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 SJNK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.40%), the computed maximum profit is $94.00 per contract and the computed maximum loss is -$106.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SJNK collar?

The breakeven for the SJNK collar priced on this page is roughly $25.06 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 SJNK market-implied 1-standard-deviation expected move is approximately 6.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SJNK implied volatility affect this collar?

SJNK ATM IV is at 23.40% with IV rank near 4.49%, 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.

SJNK Collar Strategy

SJNK (State Street SPDR Bloomberg Short Term High Yield Bond ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.

This State Street SPDR exchange-traded fund (ETF) endeavors to replicate the investment performance, encompassing both price appreciation and yield generation, of the Bloomberg US High Yield 350mn Cash Pay 0-5 Yr 2% Capped Index, prior to accounting for its operational costs. It provides broad, diversified exposure to U.S. dollar-denominated, short-maturity corporate debt within the high-yield segment. Due to its emphasis on shorter-dated assets, this ETF generally exhibits reduced sensitivity to interest rate fluctuations compared to high-yield bonds with longer maturities. Additionally, it presents a more economical approach for investors to gain access to the high-yield market than purchasing individual bonds.

SJNK (State Street SPDR Bloomberg Short Term High Yield Bond ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $4.77B, a beta of 0.46 versus the broader market, a 52-week range of 24.72-25.65, average daily share volume of 3.1M, a public-listing history dating back to 2012. These structural characteristics shape how SJNK etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.46 indicates SJNK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SJNK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SJNK?

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 SJNK snapshot

As of June 29, 2026, spot at $25.05, ATM IV 23.40%, IV rank 4.49%, expected move 6.71%. The collar on SJNK 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 SJNK specifically: IV regime affects collar pricing on both sides; compressed SJNK IV at 23.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.71% (roughly $1.68 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 SJNK expiries trade a higher absolute premium for lower per-day decay. Position sizing on SJNK should anchor to the underlying notional of $25.05 per share and to the trader's directional view on SJNK etf.

SJNK collar setup

The SJNK 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 SJNK near $25.05, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SJNK 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 SJNK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$25.05	long
Sell 1	Call	$26.00	$0.16
Buy 1	Put	$24.00	$0.17

SJNK collar risk and reward

Net Premium / Debit: -$2,506.00
Max Profit (per contract): $94.00
Max Loss (per contract): -$106.00
Breakeven(s): $25.06
Risk / Reward Ratio: 0.887

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.

SJNK collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SJNK. 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	-100.0%	-$106.00
$5.55	-77.9%	-$106.00
$11.09	-55.7%	-$106.00
$16.62	-33.6%	-$106.00
$22.16	-11.5%	-$106.00
$27.70	+10.6%	+$94.00
$33.24	+32.7%	+$94.00
$38.77	+54.8%	+$94.00
$44.31	+76.9%	+$94.00
$49.85	+99.0%	+$94.00

When traders use collar on SJNK

Collars on SJNK hedge an existing long SJNK 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.

SJNK thesis for this collar

The market-implied 1-standard-deviation range for SJNK extends from approximately $23.37 on the downside to $26.73 on the upside. A SJNK collar hedges an existing long SJNK 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 SJNK IV rank near 4.49% 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 SJNK at 23.40%. As a Financial Services name, SJNK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SJNK-specific events.

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

Frequently asked questions

What is a collar on SJNK?: A collar on SJNK is the collar strategy applied to SJNK (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 SJNK etf trading near $25.05, the strikes shown on this page are snapped to the nearest listed SJNK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SJNK 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 SJNK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.40%), the computed maximum profit is $94.00 per contract and the computed maximum loss is -$106.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SJNK collar?: The breakeven for the SJNK collar priced on this page is roughly $25.06 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 SJNK market-implied 1-standard-deviation expected move is approximately 6.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SJNK?: Collars on SJNK hedge an existing long SJNK 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 SJNK implied volatility affect this collar?: SJNK ATM IV is at 23.40% with IV rank near 4.49%, 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.