SPXS Collar Strategy
SPXS (Direxion Daily S&P 500 Bear 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily S&P 500 Bull and Bear 3X ETFs seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the S&P 500 Index. There is no guarantee the funds will achieve their stated investment objectives.
SPXS (Direxion Daily S&P 500 Bear 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $381.4M, a beta of -2.75 versus the broader market, a 52-week range of 27.1385-58.6, average daily share volume of 16.8M, a public-listing history dating back to 2008. These structural characteristics shape how SPXS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.75 indicates SPXS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SPXS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SPXS?
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 SPXS snapshot
As of May 15, 2026, spot at $27.57, ATM IV 47.51%, IV rank 15.92%, expected move 13.62%. The collar on SPXS 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 28-day expiry.
Why this collar structure on SPXS specifically: IV regime affects collar pricing on both sides; compressed SPXS IV at 47.51% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.62% (roughly $3.76 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPXS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPXS should anchor to the underlying notional of $27.57 per share and to the trader's directional view on SPXS etf.
SPXS collar setup
The SPXS 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 SPXS near $27.57, 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 SPXS chain at a 28-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 SPXS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.57 | long |
| Sell 1 | Call | $29.00 | $0.91 |
| Buy 1 | Put | $26.00 | $0.58 |
SPXS collar risk and reward
- Net Premium / Debit
- -$2,723.50
- Max Profit (per contract)
- $176.50
- Max Loss (per contract)
- -$123.50
- Breakeven(s)
- $27.24
- Risk / Reward Ratio
- 1.429
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.
SPXS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SPXS. 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% | -$123.50 |
| $6.10 | -77.9% | -$123.50 |
| $12.20 | -55.8% | -$123.50 |
| $18.29 | -33.6% | -$123.50 |
| $24.39 | -11.5% | -$123.50 |
| $30.48 | +10.6% | +$176.50 |
| $36.58 | +32.7% | +$176.50 |
| $42.67 | +54.8% | +$176.50 |
| $48.77 | +76.9% | +$176.50 |
| $54.86 | +99.0% | +$176.50 |
When traders use collar on SPXS
Collars on SPXS hedge an existing long SPXS 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.
SPXS thesis for this collar
The market-implied 1-standard-deviation range for SPXS extends from approximately $23.81 on the downside to $31.33 on the upside. A SPXS collar hedges an existing long SPXS 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 SPXS IV rank near 15.92% 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 SPXS at 47.51%. As a Financial Services name, SPXS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPXS-specific events.
SPXS 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. SPXS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPXS alongside the broader basket even when SPXS-specific fundamentals are unchanged. Always rebuild the position from current SPXS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SPXS?
- A collar on SPXS is the collar strategy applied to SPXS (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 SPXS etf trading near $27.57, the strikes shown on this page are snapped to the nearest listed SPXS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SPXS 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 SPXS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 47.51%), the computed maximum profit is $176.50 per contract and the computed maximum loss is -$123.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SPXS collar?
- The breakeven for the SPXS collar priced on this page is roughly $27.24 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 SPXS market-implied 1-standard-deviation expected move is approximately 13.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SPXS?
- Collars on SPXS hedge an existing long SPXS 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 SPXS implied volatility affect this collar?
- SPXS ATM IV is at 47.51% with IV rank near 15.92%, 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.