How are BC 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 BC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.30%), the computed maximum profit is $253.50 per contract and the computed maximum loss is -$246.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BC collar?

The breakeven for the BC collar priced on this page is roughly $77.47 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 BC market-implied 1-standard-deviation expected move is approximately 11.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BC implied volatility affect this collar?

BC ATM IV is at 40.30% with IV rank near 42.07%, 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.

BC Collar Strategy

BC (Brunswick Corporation), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Brunswick Corporation designs, manufactures, and markets recreation products worldwide. It operates through Propulsion; Parts & Accessories; and Boat segments. The Propulsion segment provides outboard, sterndrive, and inboard engines for independent boat builders and governments through marine dealers and distributors, specialty marine retailers, and marine service centers; and propulsion-related controls, rigging, and propellers to original equipment manufacturers and aftermarket retailers, distributors, and distribution businesses. This segment offers its products under the Mercury, Mercury MerCruiser, Mariner, Mercury Racing, and Mercury Diesel brands. The Parts & Accessories segment provides engine parts and consumables, electrical products, boat parts and systems, engine oils and lubricants, marine electronics and control systems, instruments, trolling motors, fuel systems, and electrical systems, as well as specialty vehicle, mobile, and transportation aftermarket products for aftermarket retailers, distributors, and distribution businesses, as well for as for the original equipment manufacturers in marine and non-marine markets; and supplies parts and accessories. This segment offers its products under the under the Mercury, Mercury Precision Parts, Quicksilver, and Seachoice brands.

BC (Brunswick Corporation) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $5.08B, a beta of 1.33 versus the broader market, a 52-week range of 48.83-90.25, average daily share volume of 916K, a public-listing history dating back to 1981, approximately 15K full-time employees. These structural characteristics shape how BC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.33 indicates BC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BC?

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 BC snapshot

As of May 15, 2026, spot at $77.34, ATM IV 40.30%, IV rank 42.07%, expected move 11.55%. The collar on BC 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 BC specifically: IV regime affects collar pricing on both sides; mid-range BC IV at 40.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.55% (roughly $8.94 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 BC expiries trade a higher absolute premium for lower per-day decay. Position sizing on BC should anchor to the underlying notional of $77.34 per share and to the trader's directional view on BC stock.

BC collar setup

The BC 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 BC near $77.34, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BC 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 BC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$77.34	long
Sell 1	Call	$80.00	$2.50
Buy 1	Put	$75.00	$2.63

BC collar risk and reward

Net Premium / Debit: -$7,746.50
Max Profit (per contract): $253.50
Max Loss (per contract): -$246.50
Breakeven(s): $77.47
Risk / Reward Ratio: 1.028

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.

BC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BC. 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%	-$246.50
$17.11	-77.9%	-$246.50
$34.21	-55.8%	-$246.50
$51.31	-33.7%	-$246.50
$68.41	-11.6%	-$246.50
$85.51	+10.6%	+$253.50
$102.61	+32.7%	+$253.50
$119.70	+54.8%	+$253.50
$136.80	+76.9%	+$253.50
$153.90	+99.0%	+$253.50

When traders use collar on BC

Collars on BC hedge an existing long BC 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.

BC thesis for this collar

The market-implied 1-standard-deviation range for BC extends from approximately $68.40 on the downside to $86.28 on the upside. A BC collar hedges an existing long BC 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 BC IV rank near 42.07% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BC should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, BC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BC-specific events.

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

Frequently asked questions

What is a collar on BC?: A collar on BC is the collar strategy applied to BC (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 BC stock trading near $77.34, the strikes shown on this page are snapped to the nearest listed BC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BC 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 BC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.30%), the computed maximum profit is $253.50 per contract and the computed maximum loss is -$246.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BC collar?: The breakeven for the BC collar priced on this page is roughly $77.47 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 BC market-implied 1-standard-deviation expected move is approximately 11.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BC?: Collars on BC hedge an existing long BC 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 BC implied volatility affect this collar?: BC ATM IV is at 40.30% with IV rank near 42.07%, 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.