How are MKTX 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 MKTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 39.40%), the computed maximum profit is $499.00 per contract and the computed maximum loss is -$501.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MKTX collar?

The breakeven for the MKTX collar priced on this page is roughly $110.01 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 MKTX market-implied 1-standard-deviation expected move is approximately 11.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MKTX implied volatility affect this collar?

MKTX ATM IV is at 39.40% with IV rank near 55.01%, 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.

MKTX Collar Strategy

MKTX (MarketAxess Holdings Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NASDAQ.

MarketAxess Holdings Inc. develops and operates a premier electronic trading platform, serving institutional investors and broker-dealers globally. This platform provides essential access to deep liquidity across a broad spectrum of fixed-income assets, including U.S. investment-grade and high-yield corporate bonds, U.S. Treasuries, municipal bonds, emerging market debt, and Eurobonds, among other debt securities. Through its innovative Open Trading protocols, the company facilitates anonymous, "all-to-all" corporate bond transactions between its diverse client base. Beyond its core trading capabilities, MarketAxess offers a comprehensive array of value-added products and services. These include Composite+ pricing and other sophisticated market data tools designed to inform trading strategies, as well as auto-execution and custom workflow solutions.

MKTX (MarketAxess Holdings Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $4.00B, a trailing P/E of 12.84, a beta of 0.85 versus the broader market, a 52-week range of 108.75-225.07, average daily share volume of 616K, a public-listing history dating back to 2004, approximately 891 full-time employees. These structural characteristics shape how MKTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places MKTX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MKTX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MKTX?

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 MKTX snapshot

As of June 29, 2026, spot at $109.91, ATM IV 39.40%, IV rank 55.01%, expected move 11.30%. The collar on MKTX 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 18-day expiry.

Why this collar structure on MKTX specifically: IV regime affects collar pricing on both sides; mid-range MKTX IV at 39.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.30% (roughly $12.41 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MKTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MKTX should anchor to the underlying notional of $109.91 per share and to the trader's directional view on MKTX stock.

MKTX collar setup

The MKTX 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 MKTX near $109.91, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MKTX chain at a 18-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 MKTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$109.91	long
Sell 1	Call	$115.00	$2.00
Buy 1	Put	$105.00	$2.10

MKTX collar risk and reward

Net Premium / Debit: -$11,001.00
Max Profit (per contract): $499.00
Max Loss (per contract): -$501.00
Breakeven(s): $110.01
Risk / Reward Ratio: 0.996

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.

MKTX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MKTX. 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%	-$501.00
$24.31	-77.9%	-$501.00
$48.61	-55.8%	-$501.00
$72.91	-33.7%	-$501.00
$97.21	-11.6%	-$501.00
$121.51	+10.6%	+$499.00
$145.81	+32.7%	+$499.00
$170.11	+54.8%	+$499.00
$194.41	+76.9%	+$499.00
$218.72	+99.0%	+$499.00

When traders use collar on MKTX

Collars on MKTX hedge an existing long MKTX 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.

MKTX thesis for this collar

The market-implied 1-standard-deviation range for MKTX extends from approximately $97.50 on the downside to $122.32 on the upside. A MKTX collar hedges an existing long MKTX 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 MKTX IV rank near 55.01% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MKTX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MKTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MKTX-specific events.

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

Frequently asked questions

What is a collar on MKTX?: A collar on MKTX is the collar strategy applied to MKTX (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 MKTX stock trading near $109.91, the strikes shown on this page are snapped to the nearest listed MKTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MKTX 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 MKTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 39.40%), the computed maximum profit is $499.00 per contract and the computed maximum loss is -$501.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MKTX collar?: The breakeven for the MKTX collar priced on this page is roughly $110.01 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 MKTX market-implied 1-standard-deviation expected move is approximately 11.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MKTX?: Collars on MKTX hedge an existing long MKTX 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 MKTX implied volatility affect this collar?: MKTX ATM IV is at 39.40% with IV rank near 55.01%, 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.