AAOX Collar Strategy
AAOX (Tradr 2X Long AAOI Daily ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
AAOX uses swap agreements and listed call options to make bullish bets on the share price of Applied Optoelectronics, Inc. (NASDAQ: AAOI). The fund may also invest directly in AAOI. Applied Optoelectronics engages in the design and manufacture of optical communications products. Its products include optical devices and equipment for applications in fiber-to-the-home, cable television, point to point communications, and wireless. The fund seeks to maintain daily leveraged exposure equivalent to 200% of the daily percentage change in AAOI price through daily rebalancing. Returns may deviate from the expected 2x if held for longer than a single day due to factors such as volatility and compounding effects.
AAOX (Tradr 2X Long AAOI Daily ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $232.9M, a beta of 21.85 versus the broader market, a 52-week range of 6.94-103, average daily share volume of 7.7M, a public-listing history dating back to 2026. These structural characteristics shape how AAOX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 21.85 indicates AAOX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on AAOX?
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.
AAOX snapshot
As of September 29, 2026, spot at $9.43, ATM IV 168.60%, expected move 48.34%. The collar on AAOX below is built from the September 29, 2026 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 AAOX specifically: IV rank is unavailable in the current snapshot, so regime-based timing for AAOX is inferred from ATM IV at 168.60% alone, with a market-implied 1-standard-deviation move of approximately 48.34% (roughly $4.56 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 AAOX expiries trade a higher absolute premium for lower per-day decay. Position sizing on AAOX should anchor to the underlying notional of $9.43 per share and to the trader's directional view on AAOX stock.
AAOX collar setup
The AAOX collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AAOX at $9.43 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AAOX 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 AAOX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.43 | long |
| Sell 1 | Call | $10.00 | $1.13 |
| Buy 1 | Put | $9.00 | $1.08 |
AAOX collar risk and reward
- Net Premium / Debit
- -$938.00
- Max Profit (per contract)
- $62.00
- Max Loss (per contract)
- -$38.00
- Breakeven(s)
- $9.38
- Risk / Reward Ratio
- 1.632
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.
AAOX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AAOX. 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 | -99.9% | -$38.00 |
| $2.09 | -77.8% | -$38.00 |
| $4.18 | -55.7% | -$38.00 |
| $6.26 | -33.6% | -$38.00 |
| $8.35 | -11.5% | -$38.00 |
| $10.43 | +10.6% | +$62.00 |
| $12.51 | +32.7% | +$62.00 |
| $14.60 | +54.8% | +$62.00 |
| $16.68 | +76.9% | +$62.00 |
| $18.77 | +99.0% | +$62.00 |
When traders use collar on AAOX
Collars on AAOX hedge an existing long AAOX stock 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.
AAOX thesis for this collar
The market-implied 1-standard-deviation range for AAOX extends from approximately $4.87 on the downside to $13.99 on the upside. A AAOX collar hedges an existing long AAOX 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. As a Financial Services name, AAOX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AAOX-specific events.
AAOX 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. AAOX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AAOX alongside the broader basket even when AAOX-specific fundamentals are unchanged. Always rebuild the position from current AAOX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AAOX?
- A collar on AAOX is the collar strategy applied to AAOX (stock). 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 AAOX stock at $9.43 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed AAOX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AAOX 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 AAOX collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 168.60%), the computed maximum profit is $62.00 per contract and the computed maximum loss is -$38.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AAOX collar?
- The breakeven for the AAOX collar priced on this page is roughly $9.38 at expiration, derived from the September 29, 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 AAOX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 48.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AAOX?
- Collars on AAOX hedge an existing long AAOX stock 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 AAOX implied volatility affect this collar?
- Current AAOX ATM IV is 168.60%; IV rank context is unavailable in the current snapshot.