How are XTN 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 XTN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.90%), the computed maximum profit is $431.00 per contract and the computed maximum loss is -$569.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XTN collar?

The breakeven for the XTN collar priced on this page is roughly $101.69 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 XTN market-implied 1-standard-deviation expected move is approximately 9.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XTN implied volatility affect this collar?

XTN ATM IV is at 33.90% with IV rank near 57.69%, 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.

XTN Collar Strategy

XTN (State Street SPDR S&P Transportation ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Transportation ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Transportation Select Industry Index (the "Index")Seeks to provide exposure to the transportation segment of the S&P TMI, comprises the following sub-industries: Air Freight & Logistics, Airport Services, Cargo Ground Transportation, Highways & Rail Tracks, Marine Transportation, Marine Ports & Services,Passenger Airlines, Passenger Ground Transportation, and Rail TransportationSeeks 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

XTN (State Street SPDR S&P Transportation ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $153.2M, a beta of 1.69 versus the broader market, a 52-week range of 74.36-120.9, average daily share volume of 69K, a public-listing history dating back to 2011. These structural characteristics shape how XTN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.69 indicates XTN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. XTN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on XTN?

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 XTN snapshot

As of May 15, 2026, spot at $101.34, ATM IV 33.90%, IV rank 57.69%, expected move 9.72%. The collar on XTN 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 XTN specifically: IV regime affects collar pricing on both sides; mid-range XTN IV at 33.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.72% (roughly $9.85 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 XTN expiries trade a higher absolute premium for lower per-day decay. Position sizing on XTN should anchor to the underlying notional of $101.34 per share and to the trader's directional view on XTN etf.

XTN collar setup

The XTN 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 XTN near $101.34, the first option leg uses a $106.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XTN 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 XTN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$101.34	long
Sell 1	Call	$106.00	$2.10
Buy 1	Put	$96.00	$2.45

XTN collar risk and reward

Net Premium / Debit: -$10,169.00
Max Profit (per contract): $431.00
Max Loss (per contract): -$569.00
Breakeven(s): $101.69
Risk / Reward Ratio: 0.757

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.

XTN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on XTN. 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%	-$569.00
$22.42	-77.9%	-$569.00
$44.82	-55.8%	-$569.00
$67.23	-33.7%	-$569.00
$89.63	-11.6%	-$569.00
$112.04	+10.6%	+$431.00
$134.44	+32.7%	+$431.00
$156.85	+54.8%	+$431.00
$179.26	+76.9%	+$431.00
$201.66	+99.0%	+$431.00

When traders use collar on XTN

Collars on XTN hedge an existing long XTN 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.

XTN thesis for this collar

The market-implied 1-standard-deviation range for XTN extends from approximately $91.49 on the downside to $111.19 on the upside. A XTN collar hedges an existing long XTN 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 XTN IV rank near 57.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on XTN should anchor more to the directional view and the expected-move geometry. As a Financial Services name, XTN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XTN-specific events.

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

Frequently asked questions

What is a collar on XTN?: A collar on XTN is the collar strategy applied to XTN (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 XTN etf trading near $101.34, the strikes shown on this page are snapped to the nearest listed XTN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XTN 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 XTN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.90%), the computed maximum profit is $431.00 per contract and the computed maximum loss is -$569.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XTN collar?: The breakeven for the XTN collar priced on this page is roughly $101.69 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 XTN market-implied 1-standard-deviation expected move is approximately 9.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on XTN?: Collars on XTN hedge an existing long XTN 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 XTN implied volatility affect this collar?: XTN ATM IV is at 33.90% with IV rank near 57.69%, 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.