How are ALGT 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 ALGT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 61.90%), the computed maximum profit is $556.00 per contract and the computed maximum loss is -$444.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ALGT collar?

The breakeven for the ALGT collar priced on this page is roughly $84.44 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 ALGT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ALGT implied volatility affect this collar?

ALGT ATM IV is at 61.90% with IV rank near 45.60%, 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.

ALGT Collar Strategy

ALGT (Allegiant Travel Company), in the Industrials sector, (Airlines, Airports & Air Services industry), listed on NASDAQ.

Allegiant Travel Company, founded in 1997 and headquartered in Las Vegas, Nevada, operates as a leisure travel provider primarily catering to residents in smaller, under-served cities across the United States. The company specializes in offering direct, infrequent flights connecting these communities to popular vacation destinations. As of February 14, 2022, its aviation operations utilized a fleet of 110 Airbus A320 series airplanes. Beyond core airfare, Allegiant generates revenue from a variety of ancillary air-related offerings, including checked baggage charges, preferred seating, travel insurance, expedited boarding, service fees, onboard refreshments, and support for bookings via its call center. The company further broadens its services by providing third-party travel arrangements such as hotel accommodations and ground transport options, including car rentals and hotel shuttle services. Additionally, Allegiant engages in fixed-fee air transportation contracts and offers both regular and on-demand charter flights.

ALGT (Allegiant Travel Company) trades in the Industrials sector, specifically Airlines, Airports & Air Services, with a market capitalization of approximately $2.27B, a trailing P/E of 59.16, a beta of 1.53 versus the broader market, a 52-week range of 53.7-123.63, average daily share volume of 579K, a public-listing history dating back to 2006, approximately 6K full-time employees. These structural characteristics shape how ALGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.53 indicates ALGT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 59.16 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. ALGT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on ALGT?

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.

ALGT snapshot

As of August 14, 2026, spot at $84.89, ATM IV 61.90%, IV rank 45.60%, expected move 17.75%. The collar on ALGT 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 ALGT specifically: IV regime affects collar pricing on both sides; mid-range ALGT IV at 61.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.75% (roughly $15.06 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 ALGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALGT should anchor to the underlying notional of $84.89 per share and to the trader's directional view on ALGT stock.

ALGT collar setup

The ALGT 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 ALGT at $84.89 on that close, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALGT 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 ALGT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$84.89	long
Sell 1	Call	$90.00	$4.70
Buy 1	Put	$80.00	$4.25

ALGT collar risk and reward

Net Premium / Debit: -$8,444.00
Max Profit (per contract): $556.00
Max Loss (per contract): -$444.00
Breakeven(s): $84.44
Risk / Reward Ratio: 1.252

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.

ALGT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ALGT. 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%	-$444.00
$18.78	-77.9%	-$444.00
$37.55	-55.8%	-$444.00
$56.32	-33.7%	-$444.00
$75.08	-11.6%	-$444.00
$93.85	+10.6%	+$556.00
$112.62	+32.7%	+$556.00
$131.39	+54.8%	+$556.00
$150.16	+76.9%	+$556.00
$168.93	+99.0%	+$556.00

When traders use collar on ALGT

Collars on ALGT hedge an existing long ALGT 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.

ALGT thesis for this collar

The market-implied 1-standard-deviation range for ALGT extends from approximately $69.83 on the downside to $99.95 on the upside. A ALGT collar hedges an existing long ALGT 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 ALGT IV rank near 45.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ALGT should anchor more to the directional view and the expected-move geometry. As a Industrials name, ALGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALGT-specific events.

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

Frequently asked questions

What is a collar on ALGT?: A collar on ALGT is the collar strategy applied to ALGT (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 ALGT stock at $84.89 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ALGT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are ALGT 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 ALGT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 61.90%), the computed maximum profit is $556.00 per contract and the computed maximum loss is -$444.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ALGT collar?: The breakeven for the ALGT collar priced on this page is roughly $84.44 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 ALGT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ALGT?: Collars on ALGT hedge an existing long ALGT 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 ALGT implied volatility affect this collar?: ALGT ATM IV is at 61.90% with IV rank near 45.60%, 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.