How are KNX 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 KNX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.40%), the computed maximum profit is $319.50 per contract and the computed maximum loss is -$430.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KNX collar?

The breakeven for the KNX collar priced on this page is roughly $71.81 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 KNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KNX implied volatility affect this collar?

KNX ATM IV is at 34.40% with IV rank near 22.90%, 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.

KNX Collar Strategy

KNX (Knight-Swift Transportation Holdings Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.

Knight-Swift Transportation Holdings Inc. (KNX) stands as a prominent provider of transportation services, specializing in truckload freight solutions for clients throughout the United States, Mexico, and Canada. Its operational scope is segmented into four key areas: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Under its Trucking segment, the company manages a diverse portfolio of services, including irregular route, dedicated, temperature-controlled (refrigerated), flatbed, expedited, dry van, drayage, and cross-border transportation for a wide variety of goods and materials. Beyond its core trucking operations, Knight-Swift provides logistics and intermodal solutions, which include freight brokerage, intermodal services, comprehensive freight management, and various non-trucking offerings. The firm also extends a suite of support services, such as vehicle repair and maintenance, warranty coverage, insurance, equipment leasing, manufacturing and warehousing of trailer parts, and professional driver training through its academy. Additionally, Knight-Swift facilitates national transportation requirements through its regional direct services, utilizing third-party carriers to cover regions outside its proprietary network.

KNX (Knight-Swift Transportation Holdings Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $11.61B, a trailing P/E of 270.02, a beta of 1.19 versus the broader market, a 52-week range of 38.63-82.86, average daily share volume of 4.1M, a public-listing history dating back to 1994, approximately 37K full-time employees. These structural characteristics shape how KNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.19 places KNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 270.02 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. KNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on KNX?

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.

KNX snapshot

As of August 14, 2026, spot at $72.16, ATM IV 34.40%, IV rank 22.90%, expected move 9.86%. The collar on KNX 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 7-day expiry.

Why this collar structure on KNX specifically: IV regime affects collar pricing on both sides; compressed KNX IV at 34.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.86% (roughly $7.12 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNX should anchor to the underlying notional of $72.16 per share and to the trader's directional view on KNX stock.

KNX collar setup

The KNX 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 KNX at $72.16 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNX chain at a 7-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 KNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$72.16	long
Sell 1	Call	$75.00	$0.58
Buy 1	Put	$67.50	$0.22

KNX collar risk and reward

Net Premium / Debit: -$7,180.50
Max Profit (per contract): $319.50
Max Loss (per contract): -$430.50
Breakeven(s): $71.81
Risk / Reward Ratio: 0.742

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.

KNX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on KNX. 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%	-$430.50
$15.96	-77.9%	-$430.50
$31.92	-55.8%	-$430.50
$47.87	-33.7%	-$430.50
$63.83	-11.6%	-$430.50
$79.78	+10.6%	+$319.50
$95.73	+32.7%	+$319.50
$111.69	+54.8%	+$319.50
$127.64	+76.9%	+$319.50
$143.59	+99.0%	+$319.50

When traders use collar on KNX

Collars on KNX hedge an existing long KNX 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.

KNX thesis for this collar

The market-implied 1-standard-deviation range for KNX extends from approximately $65.04 on the downside to $79.28 on the upside. A KNX collar hedges an existing long KNX 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 KNX IV rank near 22.90% 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 KNX at 34.40%. As a Industrials name, KNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNX-specific events.

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

Frequently asked questions

What is a collar on KNX?: A collar on KNX is the collar strategy applied to KNX (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 KNX stock at $72.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KNX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are KNX 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 KNX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.40%), the computed maximum profit is $319.50 per contract and the computed maximum loss is -$430.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KNX collar?: The breakeven for the KNX collar priced on this page is roughly $71.81 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 KNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on KNX?: Collars on KNX hedge an existing long KNX 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 KNX implied volatility affect this collar?: KNX ATM IV is at 34.40% with IV rank near 22.90%, 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.