How are XES 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 XES collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $476.00 per contract and the computed maximum loss is -$524.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XES collar?

The breakeven for the XES collar priced on this page is roughly $130.24 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 XES market-implied 1-standard-deviation expected move is approximately 10.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XES implied volatility affect this collar?

XES ATM IV is at 37.50% with IV rank near 44.84%, 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.

XES Collar Strategy

XES (State Street SPDR S&P Oil & Gas Equipment & Services ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Oil & Gas Equipment & Services ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Oil & Gas Equipment & Services Select Industry Index (the "Index")Seeks to provide exposure to the oil and gas equipment and services segment of the S&P TMI, which comprises the Oil & Gas Drilling sub-industry and the Oil & Gas Equipment & Services sub-industrySeeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocksAllows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing

XES (State Street SPDR S&P Oil & Gas Equipment & Services ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $286.1M, a beta of 0.96 versus the broader market, a 52-week range of 57.78-130.58, average daily share volume of 151K, a public-listing history dating back to 2006. These structural characteristics shape how XES etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.96 places XES roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. XES pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on XES?

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 XES snapshot

As of May 15, 2026, spot at $129.49, ATM IV 37.50%, IV rank 44.84%, expected move 10.75%. The collar on XES 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 XES specifically: IV regime affects collar pricing on both sides; mid-range XES IV at 37.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.75% (roughly $13.92 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 XES expiries trade a higher absolute premium for lower per-day decay. Position sizing on XES should anchor to the underlying notional of $129.49 per share and to the trader's directional view on XES etf.

XES collar setup

The XES 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 XES near $129.49, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XES 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 XES shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$129.49	long
Sell 1	Call	$135.00	$3.45
Buy 1	Put	$125.00	$4.20

XES collar risk and reward

Net Premium / Debit: -$13,024.00
Max Profit (per contract): $476.00
Max Loss (per contract): -$524.00
Breakeven(s): $130.24
Risk / Reward Ratio: 0.908

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.

XES collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on XES. 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%	-$524.00
$28.64	-77.9%	-$524.00
$57.27	-55.8%	-$524.00
$85.90	-33.7%	-$524.00
$114.53	-11.6%	-$524.00
$143.16	+10.6%	+$476.00
$171.79	+32.7%	+$476.00
$200.42	+54.8%	+$476.00
$229.05	+76.9%	+$476.00
$257.68	+99.0%	+$476.00

When traders use collar on XES

Collars on XES hedge an existing long XES 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.

XES thesis for this collar

The market-implied 1-standard-deviation range for XES extends from approximately $115.57 on the downside to $143.41 on the upside. A XES collar hedges an existing long XES 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 XES IV rank near 44.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on XES should anchor more to the directional view and the expected-move geometry. As a Financial Services name, XES options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XES-specific events.

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

Frequently asked questions

What is a collar on XES?: A collar on XES is the collar strategy applied to XES (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 XES etf trading near $129.49, the strikes shown on this page are snapped to the nearest listed XES chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XES 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 XES collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.50%), the computed maximum profit is $476.00 per contract and the computed maximum loss is -$524.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XES collar?: The breakeven for the XES collar priced on this page is roughly $130.24 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 XES market-implied 1-standard-deviation expected move is approximately 10.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on XES?: Collars on XES hedge an existing long XES 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 XES implied volatility affect this collar?: XES ATM IV is at 37.50% with IV rank near 44.84%, 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.