KDK Collar Strategy
KDK (Kodiak AI, Inc. Common Stock), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Kodiak AI, Inc. develops a technology software. The Company offers AI-powered ground autonomy solutions for vehicles to navigate highways, surface streets, and off-road terrain through multi-sensor architecture transportation technology for trucking, defense, and industrial industries.
KDK (Kodiak AI, Inc. Common Stock) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $1.47B, a beta of 0.40 versus the broader market, a 52-week range of 5.43-11.35, average daily share volume of 671K, a public-listing history dating back to 2025, approximately 271 full-time employees. These structural characteristics shape how KDK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates KDK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on KDK?
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 KDK snapshot
As of May 13, 2026, spot at $8.13, ATM IV 76.50%, IV rank 16.38%, expected move 21.93%. The collar on KDK 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 63-day expiry.
Why this collar structure on KDK specifically: IV regime affects collar pricing on both sides; compressed KDK IV at 76.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.93% (roughly $1.78 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KDK expiries trade a higher absolute premium for lower per-day decay. Position sizing on KDK should anchor to the underlying notional of $8.13 per share and to the trader's directional view on KDK stock.
KDK collar setup
The KDK 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 KDK near $8.13, the first option leg uses a $8.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KDK chain at a 63-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 KDK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $8.13 | long |
| Sell 1 | Call | $8.54 | N/A |
| Buy 1 | Put | $7.72 | N/A |
KDK collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
KDK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KDK. 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.
When traders use collar on KDK
Collars on KDK hedge an existing long KDK 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.
KDK thesis for this collar
The market-implied 1-standard-deviation range for KDK extends from approximately $6.35 on the downside to $9.91 on the upside. A KDK collar hedges an existing long KDK 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 KDK IV rank near 16.38% 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 KDK at 76.50%. As a Technology name, KDK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KDK-specific events.
KDK 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. KDK positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KDK alongside the broader basket even when KDK-specific fundamentals are unchanged. Always rebuild the position from current KDK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KDK?
- A collar on KDK is the collar strategy applied to KDK (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 KDK stock trading near $8.13, the strikes shown on this page are snapped to the nearest listed KDK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KDK 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 KDK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 76.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KDK collar?
- The breakeven for the KDK collar priced on this page is no defined breakeven on the modeled curve 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 KDK market-implied 1-standard-deviation expected move is approximately 21.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KDK?
- Collars on KDK hedge an existing long KDK 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 KDK implied volatility affect this collar?
- KDK ATM IV is at 76.50% with IV rank near 16.38%, 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.