SNDU Collar Strategy
SNDU (T-REX 2X Long SNDK Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund, under normal circumstances, invests at least 80% of its net assets (plus any borrowings for investment purposes) in financial instruments that are designed to provide, in the aggregate, 200% exposure to the price performance of SNDK on a daily basis. The fund may also seek to achieve its investment objective by purchasing call options on SNDK or by investing directly in the common stock of SNDK. The fund is non-diversified.
SNDU (T-REX 2X Long SNDK Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $264.5M, a beta of 17.10 versus the broader market, a 52-week range of 5.72-79, average daily share volume of 7.0M, a public-listing history dating back to 2026. These structural characteristics shape how SNDU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 17.10 indicates SNDU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on SNDU?
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.
SNDU snapshot
As of September 29, 2026, spot at $25.38, ATM IV 139.60%, IV rank 4.94%, expected move 40.02%. The collar on SNDU 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 SNDU specifically: IV regime affects collar pricing on both sides; compressed SNDU IV at 139.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 40.02% (roughly $10.16 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 SNDU expiries trade a higher absolute premium for lower per-day decay. Position sizing on SNDU should anchor to the underlying notional of $25.38 per share and to the trader's directional view on SNDU etf.
SNDU collar setup
The SNDU 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 SNDU at $25.38 on that close, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SNDU 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 SNDU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.38 | long |
| Sell 1 | Call | $27.00 | $2.40 |
| Buy 1 | Put | $24.00 | $2.25 |
SNDU collar risk and reward
- Net Premium / Debit
- -$2,523.00
- Max Profit (per contract)
- $177.00
- Max Loss (per contract)
- -$123.00
- Breakeven(s)
- $25.23
- Risk / Reward Ratio
- 1.439
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.
SNDU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SNDU. 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% | -$123.00 |
| $5.62 | -77.9% | -$123.00 |
| $11.23 | -55.7% | -$123.00 |
| $16.84 | -33.6% | -$123.00 |
| $22.45 | -11.5% | -$123.00 |
| $28.06 | +10.6% | +$177.00 |
| $33.67 | +32.7% | +$177.00 |
| $39.28 | +54.8% | +$177.00 |
| $44.89 | +76.9% | +$177.00 |
| $50.50 | +99.0% | +$177.00 |
When traders use collar on SNDU
Collars on SNDU hedge an existing long SNDU 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.
SNDU thesis for this collar
The market-implied 1-standard-deviation range for SNDU extends from approximately $15.22 on the downside to $35.54 on the upside. A SNDU collar hedges an existing long SNDU 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 SNDU IV rank near 4.94% 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 SNDU at 139.60%. As a Financial Services name, SNDU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SNDU-specific events.
SNDU 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. SNDU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SNDU alongside the broader basket even when SNDU-specific fundamentals are unchanged. Always rebuild the position from current SNDU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SNDU?
- A collar on SNDU is the collar strategy applied to SNDU (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 SNDU etf at $25.38 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed SNDU chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SNDU 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 SNDU collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 139.60%), the computed maximum profit is $177.00 per contract and the computed maximum loss is -$123.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SNDU collar?
- The breakeven for the SNDU collar priced on this page is roughly $25.23 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 SNDU market-implied 1-standard-deviation expected move in the same options snapshot is approximately 40.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SNDU?
- Collars on SNDU hedge an existing long SNDU 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 SNDU implied volatility affect this collar?
- SNDU ATM IV is at 139.60% with IV rank near 4.94%, 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.