How are SOFX 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 SOFX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 115.10%), the computed maximum profit is $41.00 per contract and the computed maximum loss is -$59.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOFX collar?

The breakeven for the SOFX collar priced on this page is roughly $10.59 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 SOFX market-implied 1-standard-deviation expected move is approximately 33.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SOFX implied volatility affect this collar?

SOFX ATM IV is at 115.10% with IV rank near 37.63%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

SOFX Collar Strategy

SOFX (Daily Target 2X Long SOFI ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

SOFX is an exchange-traded fund engineered to capitalize on upward movements in the stock price of SoFi Technologies, Inc. (SOFI). It achieves this through the use of swap agreements, essentially placing bullish bets on the underlying company. SoFi Technologies, Inc. itself is an American financial technology firm that offers a broad spectrum of personal finance and digital banking services. The fund's core objective is to deliver a daily return equivalent to 200% of the daily percentage change in SOFI's share price. To maintain this magnified exposure, it undergoes daily rebalancing. Given its highly leveraged design, SOFX is specifically intended for short-term, tactical trading maneuvers and is explicitly not recommended as a vehicle for long-term investment.

SOFX (Daily Target 2X Long SOFI ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $24.1M, a beta of 4.34 versus the broader market, a 52-week range of 7.56-55.479, average daily share volume of 1.5M, a public-listing history dating back to 2025. These structural characteristics shape how SOFX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 4.34 indicates SOFX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SOFX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SOFX?

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 SOFX snapshot

As of June 30, 2026, spot at $10.44, ATM IV 115.10%, IV rank 37.63%, expected move 33.00%. The collar on SOFX 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 17-day expiry.

Why this collar structure on SOFX specifically: IV regime affects collar pricing on both sides; mid-range SOFX IV at 115.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 33.00% (roughly $3.45 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 SOFX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOFX should anchor to the underlying notional of $10.44 per share and to the trader's directional view on SOFX etf.

SOFX collar setup

The SOFX 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 SOFX near $10.44, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOFX 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 SOFX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$10.44	long
Sell 1	Call	$11.00	$0.78
Buy 1	Put	$10.00	$0.93

SOFX collar risk and reward

Net Premium / Debit: -$1,059.00
Max Profit (per contract): $41.00
Max Loss (per contract): -$59.00
Breakeven(s): $10.59
Risk / Reward Ratio: 0.695

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.

SOFX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SOFX. 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%	-$59.00
$2.32	-77.8%	-$59.00
$4.62	-55.7%	-$59.00
$6.93	-33.6%	-$59.00
$9.24	-11.5%	-$59.00
$11.55	+10.6%	+$41.00
$13.85	+32.7%	+$41.00
$16.16	+54.8%	+$41.00
$18.47	+76.9%	+$41.00
$20.78	+99.0%	+$41.00

When traders use collar on SOFX

Collars on SOFX hedge an existing long SOFX 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.

SOFX thesis for this collar

The market-implied 1-standard-deviation range for SOFX extends from approximately $6.99 on the downside to $13.89 on the upside. A SOFX collar hedges an existing long SOFX 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 SOFX IV rank near 37.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SOFX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SOFX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOFX-specific events.

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

Frequently asked questions

What is a collar on SOFX?: A collar on SOFX is the collar strategy applied to SOFX (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 SOFX etf trading near $10.44, the strikes shown on this page are snapped to the nearest listed SOFX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SOFX 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 SOFX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 115.10%), the computed maximum profit is $41.00 per contract and the computed maximum loss is -$59.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SOFX collar?: The breakeven for the SOFX collar priced on this page is roughly $10.59 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 SOFX market-implied 1-standard-deviation expected move is approximately 33.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SOFX?: Collars on SOFX hedge an existing long SOFX 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 SOFX implied volatility affect this collar?: SOFX ATM IV is at 115.10% with IV rank near 37.63%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.