How are AVY 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 AVY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $838.50 per contract and the computed maximum loss is -$661.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AVY collar?

The breakeven for the AVY collar priced on this page is roughly $156.62 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 AVY market-implied 1-standard-deviation expected move is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AVY implied volatility affect this collar?

AVY ATM IV is at 25.50% with IV rank near 46.26%, 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.

AVY Collar Strategy

AVY (Avery Dennison Corporation), in the Industrials sector, (Business Equipment & Supplies industry), listed on NYSE.

Avery Dennison Corporation manufactures and markets pressure-sensitive materials and products in the United States, Europe, Asia, Latin America, and internationally. The company's Label and Graphic Materials segment offers pressure-sensitive label and packaging materials; and graphics and reflective products under the Fasson, JAC, Avery Dennison, and Mactac brands, as well as durable cast and reflective films. It provides its products to the home and personal care, beer and beverage, durables, pharmaceutical, wine and spirits, and food market segments; architectural, commercial sign, digital printing, and other related market segments; construction, automotive, and fleet transportation market segments, as well as traffic and safety applications; and sign shops, commercial printers, and designers. The company's Retail Branding and Information Solutions segment designs, manufactures, and sells brand embellishments, graphic tickets, tags and labels, and sustainable packaging solutions, as well as offers creative services; radio-frequency identification products; visibility and loss prevention solutions; price ticketing and marking solutions; care, content, and country of origin compliance solutions; and brand protection and security solutions. It serves retailers, brand owners, apparel manufacturers, distributors, and industrial customers. The company's Industrial and Healthcare Materials segment offers tapes; pressure-sensitive adhesive based materials and converted products; medical fasteners; and performance polymers under the Fasson, Avery Dennison, and Yongle brands.

AVY (Avery Dennison Corporation) trades in the Industrials sector, specifically Business Equipment & Supplies, with a market capitalization of approximately $12.14B, a trailing P/E of 17.72, a beta of 0.85 versus the broader market, a 52-week range of 156.23-199.54, average daily share volume of 728K, a public-listing history dating back to 1977, approximately 35K full-time employees. These structural characteristics shape how AVY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places AVY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on AVY?

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 AVY snapshot

As of May 15, 2026, spot at $156.24, ATM IV 25.50%, IV rank 46.26%, expected move 7.31%. The collar on AVY 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 34-day expiry.

Why this collar structure on AVY specifically: IV regime affects collar pricing on both sides; mid-range AVY IV at 25.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.31% (roughly $11.42 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVY expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVY should anchor to the underlying notional of $156.24 per share and to the trader's directional view on AVY stock.

AVY collar setup

The AVY 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 AVY near $156.24, the first option leg uses a $165.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVY chain at a 34-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 AVY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$156.24	long
Sell 1	Call	$165.00	$1.98
Buy 1	Put	$150.00	$2.35

AVY collar risk and reward

Net Premium / Debit: -$15,661.50
Max Profit (per contract): $838.50
Max Loss (per contract): -$661.50
Breakeven(s): $156.62
Risk / Reward Ratio: 1.268

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.

AVY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AVY. 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%	-$661.50
$34.55	-77.9%	-$661.50
$69.10	-55.8%	-$661.50
$103.64	-33.7%	-$661.50
$138.19	-11.6%	-$661.50
$172.73	+10.6%	+$838.50
$207.28	+32.7%	+$838.50
$241.82	+54.8%	+$838.50
$276.37	+76.9%	+$838.50
$310.91	+99.0%	+$838.50

When traders use collar on AVY

Collars on AVY hedge an existing long AVY 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.

AVY thesis for this collar

The market-implied 1-standard-deviation range for AVY extends from approximately $144.82 on the downside to $167.66 on the upside. A AVY collar hedges an existing long AVY 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 AVY IV rank near 46.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on AVY should anchor more to the directional view and the expected-move geometry. As a Industrials name, AVY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVY-specific events.

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

Frequently asked questions

What is a collar on AVY?: A collar on AVY is the collar strategy applied to AVY (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 AVY stock trading near $156.24, the strikes shown on this page are snapped to the nearest listed AVY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AVY 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 AVY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.50%), the computed maximum profit is $838.50 per contract and the computed maximum loss is -$661.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AVY collar?: The breakeven for the AVY collar priced on this page is roughly $156.62 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 AVY market-implied 1-standard-deviation expected move is approximately 7.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AVY?: Collars on AVY hedge an existing long AVY 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 AVY implied volatility affect this collar?: AVY ATM IV is at 25.50% with IV rank near 46.26%, 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.