KNDI Collar Strategy
KNDI (Kandi Technologies Group, Inc.), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NASDAQ.
Kandi Technologies Group, Inc. is an enterprise focused on the entire lifecycle—from conceptualization and engineering to manufacturing and market distribution—of electric vehicles (EVs) and their crucial components, as well as a diverse range of off-road vehicles. The company conducts its operations both within the People's Republic of China and internationally. Its offerings include various off-road transportation options such as all-terrain vehicles (ATVs), utility vehicles (UTVs), go-karts, electric scooters, and self-balancing electric scooters, along with their related accessories. For electric vehicles, Kandi also supplies essential parts like battery packs, structural body elements, EV control systems, climate control units, and numerous other automotive components. Established in 2002, the firm was formerly known as Kandi Technologies, Corp., before rebranding to Kandi Technologies Group, Inc. in December 2012. Its corporate headquarters are situated in Jinhua, People's Republic of China.
KNDI (Kandi Technologies Group, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $50.6M, a beta of 0.58 versus the broader market, a 52-week range of 0.605-1.77, average daily share volume of 104K, a public-listing history dating back to 2007, approximately 840 full-time employees. These structural characteristics shape how KNDI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates KNDI 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 KNDI?
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 KNDI snapshot
As of June 30, 2026, spot at $0.71, ATM IV 20.70%, IV rank 0.88%, expected move 5.93%. The collar on KNDI 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 17-day expiry.
Why this collar structure on KNDI specifically: IV regime affects collar pricing on both sides; compressed KNDI IV at 20.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.93% (roughly $0.04 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 KNDI expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNDI should anchor to the underlying notional of $0.71 per share and to the trader's directional view on KNDI stock.
KNDI collar setup
The KNDI 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 KNDI near $0.71, the first option leg uses a $0.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNDI 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 KNDI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $0.71 | long |
| Sell 1 | Call | $0.75 | N/A |
| Buy 1 | Put | $0.67 | N/A |
KNDI 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.
KNDI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KNDI. 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 KNDI
Collars on KNDI hedge an existing long KNDI 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.
KNDI thesis for this collar
The market-implied 1-standard-deviation range for KNDI extends from approximately $0.67 on the downside to $0.75 on the upside. A KNDI collar hedges an existing long KNDI 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 KNDI IV rank near 0.88% 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 KNDI at 20.70%. As a Consumer Cyclical name, KNDI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNDI-specific events.
KNDI 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. KNDI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNDI alongside the broader basket even when KNDI-specific fundamentals are unchanged. Always rebuild the position from current KNDI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KNDI?
- A collar on KNDI is the collar strategy applied to KNDI (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 KNDI stock trading near $0.71, the strikes shown on this page are snapped to the nearest listed KNDI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KNDI 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 KNDI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.70%), 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 KNDI collar?
- The breakeven for the KNDI 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 KNDI market-implied 1-standard-deviation expected move is approximately 5.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KNDI?
- Collars on KNDI hedge an existing long KNDI 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 KNDI implied volatility affect this collar?
- KNDI ATM IV is at 20.70% with IV rank near 0.88%, 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.