How are BHE 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 BHE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 47.10%), the computed maximum profit is $363.50 per contract and the computed maximum loss is -$636.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BHE collar?

The breakeven for the BHE collar priced on this page is roughly $96.37 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 BHE market-implied 1-standard-deviation expected move is approximately 13.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BHE implied volatility affect this collar?

BHE ATM IV is at 47.10% with IV rank near 8.78%, 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.

BHE Collar Strategy

BHE (Benchmark Electronics, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.

Benchmark Electronics, Inc., together with its subsidiaries, operates as a global provider, delivering a comprehensive suite of product design, engineering, technology solutions, and manufacturing services across the Americas, Asia, and Europe. Its capabilities span engineering and technology solutions, encompassing initial product design, prototyping, and comprehensive testing. This includes specialized custom testing setups and the development and construction of automation equipment. Furthermore, Benchmark excels in electronics manufacturing and rigorous testing. This involves the assembly and testing of printed circuit boards and subsystems, alongside thorough evaluations of circuitry and functionality. Their quality assurance extends to environmental, stress, and component reliability assessments, complemented by component engineering, manufacturing defect analysis, in-circuit testing, functional testing, lifecycle testing, and detailed failure analysis.

BHE (Benchmark Electronics, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $3.30B, a trailing P/E of 96.18, a beta of 1.29 versus the broader market, a 52-week range of 34.44-98.5, average daily share volume of 438K, a public-listing history dating back to 1990, approximately 12K full-time employees. These structural characteristics shape how BHE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.29 places BHE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 96.18 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. BHE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BHE?

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 BHE snapshot

As of June 29, 2026, spot at $94.84, ATM IV 47.10%, IV rank 8.78%, expected move 13.50%. The collar on BHE 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 18-day expiry.

Why this collar structure on BHE specifically: IV regime affects collar pricing on both sides; compressed BHE IV at 47.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.50% (roughly $12.81 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BHE expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHE should anchor to the underlying notional of $94.84 per share and to the trader's directional view on BHE stock.

BHE collar setup

The BHE 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 BHE near $94.84, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHE chain at a 18-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 BHE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$94.84	long
Sell 1	Call	$100.00	$1.38
Buy 1	Put	$90.00	$2.90

BHE collar risk and reward

Net Premium / Debit: -$9,636.50
Max Profit (per contract): $363.50
Max Loss (per contract): -$636.50
Breakeven(s): $96.37
Risk / Reward Ratio: 0.571

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.

BHE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BHE. 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%	-$636.50
$20.98	-77.9%	-$636.50
$41.95	-55.8%	-$636.50
$62.92	-33.7%	-$636.50
$83.88	-11.6%	-$636.50
$104.85	+10.6%	+$363.50
$125.82	+32.7%	+$363.50
$146.79	+54.8%	+$363.50
$167.76	+76.9%	+$363.50
$188.73	+99.0%	+$363.50

When traders use collar on BHE

Collars on BHE hedge an existing long BHE 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.

BHE thesis for this collar

The market-implied 1-standard-deviation range for BHE extends from approximately $82.03 on the downside to $107.65 on the upside. A BHE collar hedges an existing long BHE 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 BHE IV rank near 8.78% 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 BHE at 47.10%. As a Technology name, BHE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHE-specific events.

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

Frequently asked questions

What is a collar on BHE?: A collar on BHE is the collar strategy applied to BHE (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 BHE stock trading near $94.84, the strikes shown on this page are snapped to the nearest listed BHE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BHE 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 BHE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 47.10%), the computed maximum profit is $363.50 per contract and the computed maximum loss is -$636.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BHE collar?: The breakeven for the BHE collar priced on this page is roughly $96.37 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 BHE market-implied 1-standard-deviation expected move is approximately 13.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BHE?: Collars on BHE hedge an existing long BHE 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 BHE implied volatility affect this collar?: BHE ATM IV is at 47.10% with IV rank near 8.78%, 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.