How are ADTN 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 ADTN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 63.60%), the computed maximum profit is $121.50 per contract and the computed maximum loss is -$78.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ADTN collar?

The breakeven for the ADTN collar priced on this page is roughly $14.79 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 ADTN market-implied 1-standard-deviation expected move is approximately 18.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ADTN implied volatility affect this collar?

ADTN ATM IV is at 63.60% with IV rank near 35.98%, 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.

ADTN Collar Strategy

ADTN (ADTRAN Holdings, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

ADTRAN Holdings, Inc., through its subsidiaries, provides end-to-end fiber networking solutions for communications service provider, enterprises, and government customers in the United States, Germany, the United Kingdom, Mexico, and internationally. It operates through two segments, Network Solutions, and Services & Support. The company offers fiber access and fiber to the node platforms; transceivers, cables, and other miscellaneous materials; passive optical network optical line terminals; fiber to the distribution point Gfast distribution point units; cabinet and outside plant enclosures and services; packet optical transports; fixed wireless access platforms; and network management and subscriber services, and control and orchestration software. It also provides broadband customer premises solutions, ethernet switches and routers, residential gateways, cloud-based software-as-a-service management platforms, virtual wireless local area networks, Internet of Things gateways, pre-sale and post-sale technical support, and multi-gigabit mesh Wi-Fi gateways. In addition, the company offers time division multiplexed and asynchronous transfer mode-based aggregation systems and customer devices; and high-bit-rate and asymmetric digital subscriber line, and other technologies. Further, it provides other access and aggregation, subscriber and experience, and traditional and other products, software, and services.

ADTN (ADTRAN Holdings, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $1.28B, a beta of 1.47 versus the broader market, a 52-week range of 7.11-18.69, average daily share volume of 2.2M, a public-listing history dating back to 1994, approximately 3K full-time employees. These structural characteristics shape how ADTN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.47 indicates ADTN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on ADTN?

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 ADTN snapshot

As of May 15, 2026, spot at $14.96, ATM IV 63.60%, IV rank 35.98%, expected move 18.23%. The collar on ADTN 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 98-day expiry.

Why this collar structure on ADTN specifically: IV regime affects collar pricing on both sides; mid-range ADTN IV at 63.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.23% (roughly $2.73 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADTN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADTN should anchor to the underlying notional of $14.96 per share and to the trader's directional view on ADTN stock.

ADTN collar setup

The ADTN 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 ADTN near $14.96, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADTN chain at a 98-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 ADTN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.96	long
Sell 1	Call	$16.00	$1.68
Buy 1	Put	$14.00	$1.50

ADTN collar risk and reward

Net Premium / Debit: -$1,478.50
Max Profit (per contract): $121.50
Max Loss (per contract): -$78.50
Breakeven(s): $14.79
Risk / Reward Ratio: 1.548

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.

ADTN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ADTN. 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	-99.9%	-$78.50
$3.32	-77.8%	-$78.50
$6.62	-55.7%	-$78.50
$9.93	-33.6%	-$78.50
$13.24	-11.5%	-$78.50
$16.54	+10.6%	+$121.50
$19.85	+32.7%	+$121.50
$23.16	+54.8%	+$121.50
$26.46	+76.9%	+$121.50
$29.77	+99.0%	+$121.50

When traders use collar on ADTN

Collars on ADTN hedge an existing long ADTN 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.

ADTN thesis for this collar

The market-implied 1-standard-deviation range for ADTN extends from approximately $12.23 on the downside to $17.69 on the upside. A ADTN collar hedges an existing long ADTN 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 ADTN IV rank near 35.98% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ADTN should anchor more to the directional view and the expected-move geometry. As a Technology name, ADTN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADTN-specific events.

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

Frequently asked questions

What is a collar on ADTN?: A collar on ADTN is the collar strategy applied to ADTN (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 ADTN stock trading near $14.96, the strikes shown on this page are snapped to the nearest listed ADTN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ADTN 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 ADTN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 63.60%), the computed maximum profit is $121.50 per contract and the computed maximum loss is -$78.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ADTN collar?: The breakeven for the ADTN collar priced on this page is roughly $14.79 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 ADTN market-implied 1-standard-deviation expected move is approximately 18.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ADTN?: Collars on ADTN hedge an existing long ADTN 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 ADTN implied volatility affect this collar?: ADTN ATM IV is at 63.60% with IV rank near 35.98%, 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.