TMV Collar Strategy
TMV (Direxion Daily 20+ Year Treasury Bear 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily 20+ Year Treasury Bull & 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 ICE U.S. Treasury 20+ Year Bond Index. There is no guarantee the funds will achieve their stated investment objectives.
TMV (Direxion Daily 20+ Year Treasury Bear 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $181.8M, a beta of -6.87 versus the broader market, a 52-week range of 31.82-44.3, average daily share volume of 810K, a public-listing history dating back to 2009. These structural characteristics shape how TMV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -6.87 indicates TMV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TMV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TMV?
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 TMV snapshot
As of May 15, 2026, spot at $41.23, ATM IV 33.30%, IV rank 32.65%, expected move 9.55%. The collar on TMV 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 34-day expiry.
Why this collar structure on TMV specifically: IV regime affects collar pricing on both sides; mid-range TMV IV at 33.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $3.94 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMV should anchor to the underlying notional of $41.23 per share and to the trader's directional view on TMV etf.
TMV collar setup
The TMV 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 TMV near $41.23, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMV chain at a 34-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 TMV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $41.23 | long |
| Sell 1 | Call | $43.00 | $1.05 |
| Buy 1 | Put | $39.00 | $0.68 |
TMV collar risk and reward
- Net Premium / Debit
- -$4,085.50
- Max Profit (per contract)
- $214.50
- Max Loss (per contract)
- -$185.50
- Breakeven(s)
- $40.86
- Risk / Reward Ratio
- 1.156
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.
TMV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TMV. 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% | -$185.50 |
| $9.13 | -77.9% | -$185.50 |
| $18.24 | -55.8% | -$185.50 |
| $27.36 | -33.7% | -$185.50 |
| $36.47 | -11.5% | -$185.50 |
| $45.59 | +10.6% | +$214.50 |
| $54.70 | +32.7% | +$214.50 |
| $63.82 | +54.8% | +$214.50 |
| $72.93 | +76.9% | +$214.50 |
| $82.05 | +99.0% | +$214.50 |
When traders use collar on TMV
Collars on TMV hedge an existing long TMV 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.
TMV thesis for this collar
The market-implied 1-standard-deviation range for TMV extends from approximately $37.29 on the downside to $45.17 on the upside. A TMV collar hedges an existing long TMV 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 TMV IV rank near 32.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TMV should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TMV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMV-specific events.
TMV 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. TMV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMV alongside the broader basket even when TMV-specific fundamentals are unchanged. Always rebuild the position from current TMV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TMV?
- A collar on TMV is the collar strategy applied to TMV (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 TMV etf trading near $41.23, the strikes shown on this page are snapped to the nearest listed TMV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMV 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 TMV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $214.50 per contract and the computed maximum loss is -$185.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TMV collar?
- The breakeven for the TMV collar priced on this page is roughly $40.86 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 TMV market-implied 1-standard-deviation expected move is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TMV?
- Collars on TMV hedge an existing long TMV 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 TMV implied volatility affect this collar?
- TMV ATM IV is at 33.30% with IV rank near 32.65%, 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.