How are UTWY 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 UTWY collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $209.00 per contract and the computed maximum loss is -$191.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UTWY collar?

The breakeven for the UTWY collar priced on this page is roughly $38.91 at expiration, derived from the September 30, 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 UTWY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UTWY implied volatility affect this collar?

UTWY ATM IV is at 28.10% with IV rank near 14.64%, 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.

UTWY Collar Strategy

UTWY (US Treasury 20 Year Bond ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

UTWY is part of the first single-bond ETF suite. The targeted holding makes it very different from other ETFs holding a basket of 20-year Treasury notes. This is a tool used in portfolio management. The fund tracks an index that holds just the on-the-run 20-year US Treasury notes, which are the most recently issued and most liquid. At each monthly rebalancing, the underlying issue is sold and rolled into a newly selected issue, given that there has been a new public sale or auction by the US Government for 20-year Treasury notes. This roll transition occurs on one day, each month.

UTWY (US Treasury 20 Year Bond ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.1M, a beta of 1.94 versus the broader market, a 52-week range of 38.93-45.234, average daily share volume of 2K, a public-listing history dating back to 2023, approximately 390 full-time employees. These structural characteristics shape how UTWY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.94 indicates UTWY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UTWY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on UTWY?

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.

UTWY snapshot

As of September 30, 2026, spot at $38.94, ATM IV 28.10%, IV rank 14.64%, expected move 8.06%. The collar on UTWY below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.

Why this collar structure on UTWY specifically: IV regime affects collar pricing on both sides; compressed UTWY IV at 28.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.06% (roughly $3.14 on the underlying). The 16-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UTWY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UTWY should anchor to the underlying notional of $38.94 per share and to the trader's directional view on UTWY etf.

UTWY collar setup

The UTWY collar below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UTWY at $38.94 on that close, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UTWY chain at a 16-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 UTWY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$38.94	long
Sell 1	Call	$41.00	$0.26
Buy 1	Put	$37.00	$0.23

UTWY collar risk and reward

Net Premium / Debit: -$3,891.00
Max Profit (per contract): $209.00
Max Loss (per contract): -$191.00
Breakeven(s): $38.91
Risk / Reward Ratio: 1.094

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.

UTWY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on UTWY. 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%	-$191.00
$8.62	-77.9%	-$191.00
$17.23	-55.8%	-$191.00
$25.84	-33.7%	-$191.00
$34.44	-11.5%	-$191.00
$43.05	+10.6%	+$209.00
$51.66	+32.7%	+$209.00
$60.27	+54.8%	+$209.00
$68.88	+76.9%	+$209.00
$77.49	+99.0%	+$209.00

When traders use collar on UTWY

Collars on UTWY hedge an existing long UTWY 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.

UTWY thesis for this collar

The market-implied 1-standard-deviation range for UTWY extends from approximately $35.80 on the downside to $42.08 on the upside. A UTWY collar hedges an existing long UTWY 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 UTWY IV rank near 14.64% 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 UTWY at 28.10%. As a Financial Services name, UTWY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UTWY-specific events.

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

Frequently asked questions

What is a collar on UTWY?: A collar on UTWY is the collar strategy applied to UTWY (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 UTWY etf at $38.94 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed UTWY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UTWY 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 UTWY collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $209.00 per contract and the computed maximum loss is -$191.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UTWY collar?: The breakeven for the UTWY collar priced on this page is roughly $38.91 at expiration, derived from the September 30, 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 UTWY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on UTWY?: Collars on UTWY hedge an existing long UTWY 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 UTWY implied volatility affect this collar?: UTWY ATM IV is at 28.10% with IV rank near 14.64%, 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.