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 $12.45B, a trailing P/E of 366.09, a beta of 1.20 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 35K 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 1.20 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 366.09 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.
Current KNX snapshot
As of June 30, 2026, spot at $78.16, ATM IV 39.80%, IV rank 41.24%, expected move 11.41%. The collar on KNX 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 KNX specifically: IV regime affects collar pricing on both sides; mid-range KNX IV at 39.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.41% (roughly $8.92 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 KNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNX should anchor to the underlying notional of $78.16 per share and to the trader's directional view on KNX stock.
KNX collar setup
The KNX 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 KNX near $78.16, the first option leg uses a $82.50 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 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 KNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $78.16 | long |
| Sell 1 | Call | $82.50 | $1.10 |
| Buy 1 | Put | $75.00 | $1.38 |
KNX collar risk and reward
- Net Premium / Debit
- -$7,843.50
- Max Profit (per contract)
- $406.50
- Max Loss (per contract)
- -$343.50
- Breakeven(s)
- $78.44
- Risk / Reward Ratio
- 1.183
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$343.50 |
| $17.29 | -77.9% | -$343.50 |
| $34.57 | -55.8% | -$343.50 |
| $51.85 | -33.7% | -$343.50 |
| $69.13 | -11.6% | -$343.50 |
| $86.41 | +10.6% | +$406.50 |
| $103.69 | +32.7% | +$406.50 |
| $120.97 | +54.8% | +$406.50 |
| $138.25 | +76.9% | +$406.50 |
| $155.53 | +99.0% | +$406.50 |
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 $69.24 on the downside to $87.08 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 41.24% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on KNX should anchor more to the directional view and the expected-move geometry. 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 trading near $78.16, the strikes shown on this page are snapped to the nearest listed KNX chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 39.80%), the computed maximum profit is $406.50 per contract and the computed maximum loss is -$343.50 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 $78.44 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 KNX market-implied 1-standard-deviation expected move is approximately 11.41%; 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 39.80% with IV rank near 41.24%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.