How are FDRS 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 FDRS collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 13.10%), the computed maximum profit is $105.00 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDRS collar?

The breakeven for the FDRS collar priced on this page is roughly $24.95 at expiration, derived from the August 14, 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 FDRS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FDRS implied volatility affect this collar?

FDRS ATM IV is at 13.10% with IV rank near 0.15%, 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.

FDRS Collar Strategy

FDRS (Founder-Led ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

The FDRS ETF invests in a portfolio comprising the top 50 U.S. companies that remain under the leadership of at least one of their founders. While these companies can have any market capitalization, their individual weighting within the portfolio is determined by their market value, with no single stock accounting for more than 10% of the total. The fund's underlying index is reviewed and adjusted quarterly, specifically on the third Friday of March, June, September, and December. Classified as non-diversified, this fund may, at times, exhibit significant concentration in particular sectors or industries.

FDRS (Founder-Led ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $11.1M, a beta of 1.34 versus the broader market, a 52-week range of 19.37-25.75, average daily share volume of 75K, a public-listing history dating back to 2025. These structural characteristics shape how FDRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.34 indicates FDRS 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 FDRS?

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.

FDRS snapshot

As of August 14, 2026, spot at $25.05, ATM IV 13.10%, IV rank 0.15%, expected move 3.76%. The collar on FDRS below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on FDRS specifically: IV regime affects collar pricing on both sides; compressed FDRS IV at 13.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.76% (roughly $0.94 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDRS should anchor to the underlying notional of $25.05 per share and to the trader's directional view on FDRS stock.

FDRS collar setup

The FDRS collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FDRS at $25.05 on that close, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDRS chain at a 35-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 FDRS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$25.05	long
Sell 1	Call	$26.00	$0.37
Buy 1	Put	$24.00	$0.27

FDRS collar risk and reward

Net Premium / Debit: -$2,495.00
Max Profit (per contract): $105.00
Max Loss (per contract): -$95.00
Breakeven(s): $24.95
Risk / Reward Ratio: 1.105

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.

FDRS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FDRS. 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%	-$95.00
$5.55	-77.9%	-$95.00
$11.09	-55.7%	-$95.00
$16.62	-33.6%	-$95.00
$22.16	-11.5%	-$95.00
$27.70	+10.6%	+$105.00
$33.24	+32.7%	+$105.00
$38.77	+54.8%	+$105.00
$44.31	+76.9%	+$105.00
$49.85	+99.0%	+$105.00

When traders use collar on FDRS

Collars on FDRS hedge an existing long FDRS 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.

FDRS thesis for this collar

The market-implied 1-standard-deviation range for FDRS extends from approximately $24.11 on the downside to $25.99 on the upside. A FDRS collar hedges an existing long FDRS 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 FDRS IV rank near 0.15% 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 FDRS at 13.10%. As a Financial Services name, FDRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDRS-specific events.

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

Frequently asked questions

What is a collar on FDRS?: A collar on FDRS is the collar strategy applied to FDRS (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 FDRS stock at $25.05 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FDRS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FDRS 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 FDRS collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 13.10%), the computed maximum profit is $105.00 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDRS collar?: The breakeven for the FDRS collar priced on this page is roughly $24.95 at expiration, derived from the August 14, 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 FDRS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on FDRS?: Collars on FDRS hedge an existing long FDRS 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 FDRS implied volatility affect this collar?: FDRS ATM IV is at 13.10% with IV rank near 0.15%, 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.