How are TEMT 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 TEMT collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 148.20%), the computed maximum profit is $152.00 per contract and the computed maximum loss is -$48.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TEMT collar?

The breakeven for the TEMT collar priced on this page is roughly $38.48 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 TEMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TEMT implied volatility affect this collar?

TEMT ATM IV is at 148.20% with IV rank near 39.87%, 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.

TEMT Collar Strategy

TEMT (Investment Managers Series Trust II - Tradr 2X Long TEM Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.

TEMT is a leveraged ETF seeking to provide twice the daily performance of Tempus Al Inc., a healthcare AI firm. The fund's objective is strictly for daily returns and is not designed for long-term investment. To meet its leverage goal, the fund primarily engages in swap agreements, options, and direct holdings of Tempus Al (TEM) stock, actively rebalancing each trading day. Its performance is highly tied to TEM's daily price movements and may experience increased volatility compared to traditional funds. Due to its use of derivatives and leverage, the fund should be monitored regularly, as it is intended for short-term trading rather than long-term investing. The fund's concentration reflects TEM's focus on healthcare technology, and its results can vary considerably depending on underlying stock and sector movements.

TEMT (Investment Managers Series Trust II - Tradr 2X Long TEM Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $58.6M, a beta of 5.22 versus the broader market, a 52-week range of 11.52-152.22, average daily share volume of 281K, a public-listing history dating back to 2025. These structural characteristics shape how TEMT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 5.22 indicates TEMT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TEMT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on TEMT?

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.

TEMT snapshot

As of September 29, 2026, spot at $39.53, ATM IV 148.20%, IV rank 39.87%, expected move 42.49%. The collar on TEMT 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 TEMT specifically: IV regime affects collar pricing on both sides; mid-range TEMT IV at 148.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 42.49% (roughly $16.80 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 TEMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TEMT should anchor to the underlying notional of $39.53 per share and to the trader's directional view on TEMT etf.

TEMT collar setup

The TEMT 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 TEMT at $39.53 on that close, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TEMT 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 TEMT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$39.53	long
Sell 1	Call	$40.00	$4.95
Buy 1	Put	$38.00	$3.90

TEMT collar risk and reward

Net Premium / Debit: -$3,848.00
Max Profit (per contract): $152.00
Max Loss (per contract): -$48.00
Breakeven(s): $38.48
Risk / Reward Ratio: 3.167

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.

TEMT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TEMT. 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%	-$48.00
$8.75	-77.9%	-$48.00
$17.49	-55.8%	-$48.00
$26.23	-33.7%	-$48.00
$34.97	-11.5%	-$48.00
$43.71	+10.6%	+$152.00
$52.45	+32.7%	+$152.00
$61.18	+54.8%	+$152.00
$69.92	+76.9%	+$152.00
$78.66	+99.0%	+$152.00

When traders use collar on TEMT

Collars on TEMT hedge an existing long TEMT 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.

TEMT thesis for this collar

The market-implied 1-standard-deviation range for TEMT extends from approximately $22.73 on the downside to $56.33 on the upside. A TEMT collar hedges an existing long TEMT 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 TEMT IV rank near 39.87% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TEMT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TEMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TEMT-specific events.

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

Frequently asked questions

What is a collar on TEMT?: A collar on TEMT is the collar strategy applied to TEMT (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 TEMT etf at $39.53 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed TEMT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TEMT 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 TEMT collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 148.20%), the computed maximum profit is $152.00 per contract and the computed maximum loss is -$48.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TEMT collar?: The breakeven for the TEMT collar priced on this page is roughly $38.48 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 TEMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 42.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TEMT?: Collars on TEMT hedge an existing long TEMT 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 TEMT implied volatility affect this collar?: TEMT ATM IV is at 148.20% with IV rank near 39.87%, 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.