How are AMGN 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 AMGN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.85%), the computed maximum profit is $1,821.50 per contract and the computed maximum loss is -$1,678.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AMGN collar?

The breakeven for the AMGN collar priced on this page is roughly $326.78 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 AMGN market-implied 1-standard-deviation expected move is approximately 6.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AMGN implied volatility affect this collar?

AMGN ATM IV is at 23.85% with IV rank near 22.47%, 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.

AMGN Collar Strategy

AMGN (Amgen Inc.), in the Healthcare sector, (Drug Manufacturers - General industry), listed on NASDAQ.

Amgen Inc. discovers, develops, manufactures, and delivers human therapeutics worldwide. It focuses on inflammation, oncology/hematology, bone health, cardiovascular disease, nephrology, and neuroscience areas. The company's products include Enbrel to treat plaque psoriasis, rheumatoid arthritis, and psoriatic arthritis; Neulasta that reduces the chance of infection due a low white blood cell count in patients cancer; Prolia to treat postmenopausal women with osteoporosis; Xgeva for skeletal-related events prevention; Otezla for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, and oral ulcers associated with Behçet's disease; Aranesp to treat a lower-than-normal number of red blood cells and anemia; KYPROLIS to treat patients with relapsed or refractory multiple myeloma; and Repatha, which reduces the risks of myocardial infarction, stroke, and coronary revascularization. It also markets Nplate, Vectibix, MVASI, Parsabiv, EPOGEN, KANJINTI, BLINCYTO, Aimovig, EVENITY, AMGEVITATM, Sensipar/Mimpara, NEUPOGEN, IMLYGIC, Corlanor, and AVSOLA. Amgen Inc. serves healthcare providers, including physicians or their clinics, dialysis centers, hospitals, and pharmacies. It distributes its products through pharmaceutical wholesale distributors, as well as direct-to-consumer channels.

AMGN (Amgen Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - General, with a market capitalization of approximately $181.58B, a trailing P/E of 23.29, a beta of 0.44 versus the broader market, a 52-week range of 264.15-391.29, average daily share volume of 2.6M, a public-listing history dating back to 1983, approximately 28K full-time employees. These structural characteristics shape how AMGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.44 indicates AMGN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. AMGN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AMGN?

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 AMGN snapshot

As of May 15, 2026, spot at $327.19, ATM IV 23.85%, IV rank 22.47%, expected move 6.84%. The collar on AMGN 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 28-day expiry.

Why this collar structure on AMGN specifically: IV regime affects collar pricing on both sides; compressed AMGN IV at 23.85% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.84% (roughly $22.37 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AMGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on AMGN should anchor to the underlying notional of $327.19 per share and to the trader's directional view on AMGN stock.

AMGN collar setup

The AMGN 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 AMGN near $327.19, the first option leg uses a $345.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AMGN chain at a 28-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 AMGN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$327.19	long
Sell 1	Call	$345.00	$2.84
Buy 1	Put	$310.00	$2.44

AMGN collar risk and reward

Net Premium / Debit: -$32,678.50
Max Profit (per contract): $1,821.50
Max Loss (per contract): -$1,678.50
Breakeven(s): $326.78
Risk / Reward Ratio: 1.085

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.

AMGN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AMGN. 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	-100.0%	-$1,678.50
$72.35	-77.9%	-$1,678.50
$144.69	-55.8%	-$1,678.50
$217.04	-33.7%	-$1,678.50
$289.38	-11.6%	-$1,678.50
$361.72	+10.6%	+$1,821.50
$434.06	+32.7%	+$1,821.50
$506.41	+54.8%	+$1,821.50
$578.75	+76.9%	+$1,821.50
$651.09	+99.0%	+$1,821.50

When traders use collar on AMGN

Collars on AMGN hedge an existing long AMGN 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.

AMGN thesis for this collar

The market-implied 1-standard-deviation range for AMGN extends from approximately $304.82 on the downside to $349.56 on the upside. A AMGN collar hedges an existing long AMGN 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 AMGN IV rank near 22.47% 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 AMGN at 23.85%. As a Healthcare name, AMGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AMGN-specific events.

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

Frequently asked questions

What is a collar on AMGN?: A collar on AMGN is the collar strategy applied to AMGN (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 AMGN stock trading near $327.19, the strikes shown on this page are snapped to the nearest listed AMGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AMGN 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 AMGN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.85%), the computed maximum profit is $1,821.50 per contract and the computed maximum loss is -$1,678.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AMGN collar?: The breakeven for the AMGN collar priced on this page is roughly $326.78 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 AMGN market-implied 1-standard-deviation expected move is approximately 6.84%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AMGN?: Collars on AMGN hedge an existing long AMGN 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 AMGN implied volatility affect this collar?: AMGN ATM IV is at 23.85% with IV rank near 22.47%, 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.