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 25.90%), the computed maximum profit is $211.00 per contract and the computed maximum loss is -$189.00 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 $36.89 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 7.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TMV implied volatility affect this collar?

TMV ATM IV is at 25.90% with IV rank near 10.38%, 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.

TMV Collar Strategy

TMV (Direxion Daily 20+ Year Treasury Bear 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

TMV provides daily inverse (-3x) exposure to the ICE U.S. Treasury 20+ Year Bond Index. Using a combination of swaps and futures, TMV gives investors -3x exposure to daily moves in T-bonds with more than 20 years left to maturity. The daily reset means investors shouldn't expect the leverage factor to hold constant over investment horizons greater than one day. In short, the fund is a valid option for tactical positioning/hedging against rising interest rates, but it's important to keep in mind that the -3x leverage results in greater impact from the effects of compounding. As a levered product, TMV is not a buy-and-hold ETF, it's a short-term tactical instrument.

TMV (Direxion Daily 20+ Year Treasury Bear 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $158.0M, a beta of -6.90 versus the broader market, a 52-week range of 31.82-42.54, average daily share volume of 674K, 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 -6.90 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 June 30, 2026, spot at $36.89, ATM IV 25.90%, IV rank 10.38%, expected move 7.43%. 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 17-day expiry.

Why this collar structure on TMV specifically: IV regime affects collar pricing on both sides; compressed TMV IV at 25.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.43% (roughly $2.74 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 TMV expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMV should anchor to the underlying notional of $36.89 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 $36.89, the first option leg uses a $39.00 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 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 TMV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$36.89	long
Sell 1	Call	$39.00	$0.20
Buy 1	Put	$35.00	$0.20

TMV collar risk and reward

Net Premium / Debit: -$3,689.00
Max Profit (per contract): $211.00
Max Loss (per contract): -$189.00
Breakeven(s): $36.89
Risk / Reward Ratio: 1.116

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.

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%	-$189.00
$8.17	-77.9%	-$189.00
$16.32	-55.8%	-$189.00
$24.48	-33.7%	-$189.00
$32.63	-11.5%	-$189.00
$40.79	+10.6%	+$211.00
$48.94	+32.7%	+$211.00
$57.10	+54.8%	+$211.00
$65.25	+76.9%	+$211.00
$73.41	+99.0%	+$211.00

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 $34.15 on the downside to $39.63 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 10.38% 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 TMV at 25.90%. 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 $36.89, 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 25.90%), the computed maximum profit is $211.00 per contract and the computed maximum loss is -$189.00 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 $36.89 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 7.43%; 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 25.90% with IV rank near 10.38%, 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.