MX Collar Strategy
MX (Magnachip Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NYSE.
Magnachip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, the Internet of Things, consumer, industrial, and automotive applications. It provides display solutions, including source and gate drivers, and timing controllers that cover a range of flat panel displays used in mobile communications, automotive, entertainment devices, notebook PCs, monitors and liquid crystal displays, and micro light-emitting diode (LED) televisions. The company also offers metal oxide semiconductor field-effect transistors, insulated-gate bipolar transistors, AC-DC converters, DC-DC converters, LED drivers, regulators, and power management integrated circuits for a range of devices comprising televisions, smartphones, mobile phones, wearable devices, desktop PCs, notebooks, tablet PCs, and other consumer electronics, as well as for power suppliers, e-bike, photovoltaic inverter, LED lighting, motor drive, and home appliances; and organic light-emitting diode display driver integrated circuits for OLED TVs. It serves consumer, computing, and industrial electronics original equipment manufacturers, original design manufacturers, and electronics manufacturing services companies, as well as subsystem designers in Korea, the Asia Pacific, the United States, Europe, and internationally. The company sells its products through a direct sales force, as well as through a network of agents and distributors. Magnachip Semiconductor Corporation was incorporated in 2004 and is based in Luxembourg, Luxembourg.
MX (Magnachip Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $148.3M, a beta of 1.00 versus the broader market, a 52-week range of 2.18-5.64, average daily share volume of 1.1M, a public-listing history dating back to 2011, approximately 881 full-time employees. These structural characteristics shape how MX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places MX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on MX?
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 MX snapshot
As of May 15, 2026, spot at $4.45, ATM IV 119.30%, IV rank 41.32%, expected move 34.20%. The collar on MX 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 34-day expiry.
Why this collar structure on MX specifically: IV regime affects collar pricing on both sides; mid-range MX IV at 119.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 34.20% (roughly $1.52 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MX should anchor to the underlying notional of $4.45 per share and to the trader's directional view on MX stock.
MX collar setup
The MX 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 MX near $4.45, the first option leg uses a $4.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MX chain at a 34-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 MX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.45 | long |
| Sell 1 | Call | $4.67 | N/A |
| Buy 1 | Put | $4.23 | N/A |
MX 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.
MX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MX. 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 MX
Collars on MX hedge an existing long MX 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.
MX thesis for this collar
The market-implied 1-standard-deviation range for MX extends from approximately $2.93 on the downside to $5.97 on the upside. A MX collar hedges an existing long MX 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 MX IV rank near 41.32% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MX should anchor more to the directional view and the expected-move geometry. As a Technology name, MX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MX-specific events.
MX 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. MX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MX alongside the broader basket even when MX-specific fundamentals are unchanged. Always rebuild the position from current MX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MX?
- A collar on MX is the collar strategy applied to MX (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 MX stock trading near $4.45, the strikes shown on this page are snapped to the nearest listed MX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MX 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 MX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 119.30%), 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 MX collar?
- The breakeven for the MX 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 MX market-implied 1-standard-deviation expected move is approximately 34.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MX?
- Collars on MX hedge an existing long MX 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 MX implied volatility affect this collar?
- MX ATM IV is at 119.30% with IV rank near 41.32%, 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.