SOYB Collar Strategy
SOYB (Teucrium Soybean Fund), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Teucrium Soybean Fund, identified by the ticker SOYB, provides a direct and accessible method for investors to gain exposure to the market prices of soybean futures contracts through their existing brokerage accounts. Given that soybean price fluctuations have historically demonstrated a low correlation with the performance of U.S. stock markets, SOYB presents a potentially appealing tool for strengthening portfolio diversification.
SOYB (Teucrium Soybean Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $52.7M, a beta of 0.44 versus the broader market, a 52-week range of 21.06-28.19, average daily share volume of 89K, a public-listing history dating back to 2011. These structural characteristics shape how SOYB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.44 indicates SOYB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on SOYB?
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.
SOYB snapshot
As of September 29, 2026, spot at $27.58, ATM IV 23.80%, IV rank 4.70%, expected move 6.82%. The collar on SOYB 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 SOYB specifically: IV regime affects collar pricing on both sides; compressed SOYB IV at 23.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.82% (roughly $1.88 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 SOYB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOYB should anchor to the underlying notional of $27.58 per share and to the trader's directional view on SOYB etf.
SOYB collar setup
The SOYB 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 SOYB at $27.58 on that close, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOYB 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 SOYB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.58 | long |
| Sell 1 | Call | $29.00 | $0.15 |
| Buy 1 | Put | $26.00 | $0.09 |
SOYB collar risk and reward
- Net Premium / Debit
- -$2,752.00
- Max Profit (per contract)
- $148.00
- Max Loss (per contract)
- -$152.00
- Breakeven(s)
- $27.52
- Risk / Reward Ratio
- 0.974
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.
SOYB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SOYB. 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% | -$152.00 |
| $6.11 | -77.9% | -$152.00 |
| $12.20 | -55.8% | -$152.00 |
| $18.30 | -33.6% | -$152.00 |
| $24.40 | -11.5% | -$152.00 |
| $30.49 | +10.6% | +$148.00 |
| $36.59 | +32.7% | +$148.00 |
| $42.69 | +54.8% | +$148.00 |
| $48.79 | +76.9% | +$148.00 |
| $54.88 | +99.0% | +$148.00 |
When traders use collar on SOYB
Collars on SOYB hedge an existing long SOYB 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.
SOYB thesis for this collar
The market-implied 1-standard-deviation range for SOYB extends from approximately $25.70 on the downside to $29.46 on the upside. A SOYB collar hedges an existing long SOYB 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 SOYB IV rank near 4.70% 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 SOYB at 23.80%. As a Financial Services name, SOYB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOYB-specific events.
SOYB 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. SOYB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SOYB alongside the broader basket even when SOYB-specific fundamentals are unchanged. Always rebuild the position from current SOYB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SOYB?
- A collar on SOYB is the collar strategy applied to SOYB (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 SOYB etf at $27.58 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed SOYB chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SOYB 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 SOYB collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.80%), the computed maximum profit is $148.00 per contract and the computed maximum loss is -$152.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SOYB collar?
- The breakeven for the SOYB collar priced on this page is roughly $27.52 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 SOYB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SOYB?
- Collars on SOYB hedge an existing long SOYB 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 SOYB implied volatility affect this collar?
- SOYB ATM IV is at 23.80% with IV rank near 4.70%, 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.