How are AM 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 AM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.40%), the computed maximum profit is $152.50 per contract and the computed maximum loss is -$147.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AM collar?

The breakeven for the AM collar priced on this page is roughly $22.48 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 AM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AM implied volatility affect this collar?

AM ATM IV is at 22.40% with IV rank near 2.32%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

AM Collar Strategy

AM (Antero Midstream Corporation), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Antero Midstream Corporation primarily owns, operates, and expands vital midstream energy infrastructure. Its operations are divided into two key divisions: Gathering and Processing, and Water Handling. The Gathering and Processing segment involves a comprehensive network of pipelines and compressor stations that are crucial for collecting and treating natural gas output from Antero Resources' wells situated across West Virginia and Ohio. Meanwhile, the Water Handling segment focuses on supplying fresh water, supported by its array of pumping stations, water storage, and blending facilities. Established in 2013, the company maintains its corporate headquarters in Denver, Colorado.

AM (Antero Midstream Corporation) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $10.56B, a trailing P/E of 26.43, a beta of 0.63 versus the broader market, a 52-week range of 16.96-23.835, average daily share volume of 2.4M, a public-listing history dating back to 2017, approximately 632 full-time employees. These structural characteristics shape how AM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.63 indicates AM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AM?

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.

AM snapshot

As of August 14, 2026, spot at $22.55, ATM IV 22.40%, IV rank 2.32%, expected move 6.42%. The collar on AM 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 AM specifically: IV regime affects collar pricing on both sides; compressed AM IV at 22.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.42% (roughly $1.45 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 AM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AM should anchor to the underlying notional of $22.55 per share and to the trader's directional view on AM stock.

AM collar setup

The AM 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 AM at $22.55 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AM 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 AM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$22.55	long
Sell 1	Call	$24.00	$0.20
Buy 1	Put	$21.00	$0.13

AM collar risk and reward

Net Premium / Debit: -$2,247.50
Max Profit (per contract): $152.50
Max Loss (per contract): -$147.50
Breakeven(s): $22.48
Risk / Reward Ratio: 1.034

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.

AM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AM. 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%	-$147.50
$4.99	-77.9%	-$147.50
$9.98	-55.7%	-$147.50
$14.96	-33.6%	-$147.50
$19.95	-11.5%	-$147.50
$24.93	+10.6%	+$152.50
$29.92	+32.7%	+$152.50
$34.90	+54.8%	+$152.50
$39.89	+76.9%	+$152.50
$44.87	+99.0%	+$152.50

When traders use collar on AM

Collars on AM hedge an existing long AM 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.

AM thesis for this collar

The market-implied 1-standard-deviation range for AM extends from approximately $21.10 on the downside to $24.00 on the upside. A AM collar hedges an existing long AM 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 AM IV rank near 2.32% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AM at 22.40%. As a Energy name, AM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AM-specific events.

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

Frequently asked questions

What is a collar on AM?: A collar on AM is the collar strategy applied to AM (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 AM stock at $22.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AM 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 AM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.40%), the computed maximum profit is $152.50 per contract and the computed maximum loss is -$147.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AM collar?: The breakeven for the AM collar priced on this page is roughly $22.48 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 AM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AM?: Collars on AM hedge an existing long AM 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 AM implied volatility affect this collar?: AM ATM IV is at 22.40% with IV rank near 2.32%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.