How are AER 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 AER collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.10%), the computed maximum profit is $823.00 per contract and the computed maximum loss is -$677.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AER collar?

The breakeven for the AER collar priced on this page is roughly $151.77 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 AER market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AER implied volatility affect this collar?

AER ATM IV is at 25.10% with IV rank near 34.23%, 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.

AER Collar Strategy

AER (AerCap Holdings N.V.), in the Industrials sector, (Rental & Leasing Services industry), listed on NYSE.

AerCap Holdings N.V., a company founded in 1995 and based in Dublin, Ireland, operates extensively in the global aviation industry. The firm specializes in the acquisition, leasing, funding, sale, and general management of commercial aircraft and engines. Its operations span crucial international markets, including China, Hong Kong, Macau, the United States, and Ireland, alongside its broader global activities. A core component of AerCap's business involves a comprehensive suite of aircraft asset management services. These services range from remarketing aircraft and engines to diligently collecting rental and maintenance fees, overseeing aircraft upkeep, and ensuring strict adherence to contractual terms. They manage the complete asset lifecycle, facilitating equipment handovers (delivery and redelivery), and conducting continuous financial evaluations of lessees.

AER (AerCap Holdings N.V.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $23.69B, a trailing P/E of 6.91, a beta of 0.93 versus the broader market, a 52-week range of 112.05-158.81, average daily share volume of 1.2M, a public-listing history dating back to 2006, approximately 668 full-time employees. These structural characteristics shape how AER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.93 places AER roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 6.91 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. AER pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AER?

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.

AER snapshot

As of August 14, 2026, spot at $151.47, ATM IV 25.10%, IV rank 34.23%, expected move 7.20%. The collar on AER 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 35-day expiry.

Why this collar structure on AER specifically: IV regime affects collar pricing on both sides; mid-range AER IV at 25.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.20% (roughly $10.90 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AER expiries trade a higher absolute premium for lower per-day decay. Position sizing on AER should anchor to the underlying notional of $151.47 per share and to the trader's directional view on AER stock.

AER collar setup

The AER 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 AER at $151.47 on that close, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AER chain at a 35-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 AER shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$151.47	long
Sell 1	Call	$160.00	$1.85
Buy 1	Put	$145.00	$2.15

AER collar risk and reward

Net Premium / Debit: -$15,177.00
Max Profit (per contract): $823.00
Max Loss (per contract): -$677.00
Breakeven(s): $151.77
Risk / Reward Ratio: 1.216

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.

AER collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AER. 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%	-$677.00
$33.50	-77.9%	-$677.00
$66.99	-55.8%	-$677.00
$100.48	-33.7%	-$677.00
$133.97	-11.6%	-$677.00
$167.46	+10.6%	+$823.00
$200.95	+32.7%	+$823.00
$234.44	+54.8%	+$823.00
$267.93	+76.9%	+$823.00
$301.42	+99.0%	+$823.00

When traders use collar on AER

Collars on AER hedge an existing long AER 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.

AER thesis for this collar

The market-implied 1-standard-deviation range for AER extends from approximately $140.57 on the downside to $162.37 on the upside. A AER collar hedges an existing long AER 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 AER IV rank near 34.23% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on AER should anchor more to the directional view and the expected-move geometry. As a Industrials name, AER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AER-specific events.

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

Frequently asked questions

What is a collar on AER?: A collar on AER is the collar strategy applied to AER (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 AER stock at $151.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AER chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AER 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 AER collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.10%), the computed maximum profit is $823.00 per contract and the computed maximum loss is -$677.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AER collar?: The breakeven for the AER collar priced on this page is roughly $151.77 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 AER market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AER?: Collars on AER hedge an existing long AER 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 AER implied volatility affect this collar?: AER ATM IV is at 25.10% with IV rank near 34.23%, 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.