How are ATMU 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 ATMU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $377.50 per contract and the computed maximum loss is -$372.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ATMU collar?

The breakeven for the ATMU collar priced on this page is roughly $51.23 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 ATMU market-implied 1-standard-deviation expected move is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ATMU implied volatility affect this collar?

ATMU ATM IV is at 36.80% with IV rank near 9.70%, 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.

ATMU Collar Strategy

ATMU (Atmus Filtration Technologies Inc.), in the Industrials sector, (Industrial - Pollution & Treatment Controls industry), listed on NYSE.

Atmus Filtration Technologies Inc. specializes in the global design, manufacturing, and distribution of advanced filtration products, marketed under its reputable Fleetguard brand. The company's comprehensive portfolio includes essential components such as fuel, lubrication, air, crankcase ventilation, and hydraulic filters, in addition to coolants and fuel additives. These solutions are critical for a wide array of applications, from on-highway and off-highway commercial vehicles to heavy equipment used in agriculture, construction, mining, and power generation. Atmus serves a diverse international customer base spanning North America, Europe, South America, Asia, Australia, and Africa, catering to original equipment manufacturers (OEMs), various dealers/distributors, and direct end-users. Founded in 1958, the company maintains its headquarters in Nashville, Tennessee, and operates as a subsidiary of Cummins Inc.

ATMU (Atmus Filtration Technologies Inc.) trades in the Industrials sector, specifically Industrial - Pollution & Treatment Controls, with a market capitalization of approximately $4.40B, a trailing P/E of 20.82, a beta of 1.25 versus the broader market, a 52-week range of 35.48-66.5, average daily share volume of 1.3M, a public-listing history dating back to 2023, approximately 5K full-time employees. These structural characteristics shape how ATMU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.25 places ATMU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ATMU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on ATMU?

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 ATMU snapshot

As of June 30, 2026, spot at $51.31, ATM IV 36.80%, IV rank 9.70%, expected move 10.55%. The collar on ATMU 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 17-day expiry.

Why this collar structure on ATMU specifically: IV regime affects collar pricing on both sides; compressed ATMU IV at 36.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.55% (roughly $5.41 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ATMU expiries trade a higher absolute premium for lower per-day decay. Position sizing on ATMU should anchor to the underlying notional of $51.31 per share and to the trader's directional view on ATMU stock.

ATMU collar setup

The ATMU 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 ATMU near $51.31, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ATMU chain at a 17-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 ATMU shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$51.31	long
Sell 1	Call	$55.00	$0.48
Buy 1	Put	$47.50	$0.39

ATMU collar risk and reward

Net Premium / Debit: -$5,122.50
Max Profit (per contract): $377.50
Max Loss (per contract): -$372.50
Breakeven(s): $51.23
Risk / Reward Ratio: 1.013

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.

ATMU collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ATMU. 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%	-$372.50
$11.35	-77.9%	-$372.50
$22.70	-55.8%	-$372.50
$34.04	-33.7%	-$372.50
$45.39	-11.5%	-$372.50
$56.73	+10.6%	+$377.50
$68.07	+32.7%	+$377.50
$79.42	+54.8%	+$377.50
$90.76	+76.9%	+$377.50
$102.10	+99.0%	+$377.50

When traders use collar on ATMU

Collars on ATMU hedge an existing long ATMU 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.

ATMU thesis for this collar

The market-implied 1-standard-deviation range for ATMU extends from approximately $45.90 on the downside to $56.72 on the upside. A ATMU collar hedges an existing long ATMU 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 ATMU IV rank near 9.70% 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 ATMU at 36.80%. As a Industrials name, ATMU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ATMU-specific events.

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

Frequently asked questions

What is a collar on ATMU?: A collar on ATMU is the collar strategy applied to ATMU (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 ATMU stock trading near $51.31, the strikes shown on this page are snapped to the nearest listed ATMU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ATMU 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 ATMU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $377.50 per contract and the computed maximum loss is -$372.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ATMU collar?: The breakeven for the ATMU collar priced on this page is roughly $51.23 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 ATMU market-implied 1-standard-deviation expected move is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ATMU?: Collars on ATMU hedge an existing long ATMU 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 ATMU implied volatility affect this collar?: ATMU ATM IV is at 36.80% with IV rank near 9.70%, 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.