How are BILL 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 BILL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.27%), the computed maximum profit is $173.50 per contract and the computed maximum loss is -$126.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BILL collar?

The breakeven for the BILL collar priced on this page is roughly $36.27 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 BILL market-implied 1-standard-deviation expected move is approximately 17.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BILL implied volatility affect this collar?

BILL ATM IV is at 61.27% with IV rank near 41.02%, 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.

BILL Collar Strategy

BILL (Bill.com Holdings, Inc.), in the Technology sector, (Software - Application industry), listed on NYSE.

Bill.com Holdings, Inc. offers a powerful cloud-based platform designed to streamline, digitize, and automate the core financial operations for small and medium-sized businesses worldwide. Through its software-as-a-service (SaaS) model, the company provides sophisticated cloud payment solutions and spend management tools. These offerings empower businesses to fully automate both accounts payable and accounts receivable processes, foster seamless connections with their suppliers and clients, abolish traditional expense reports, optimize cash flow, and significantly enhance overall office efficiency. Beyond its core products, Bill.com also furnishes comprehensive support services, covering initial implementation assistance, ongoing technical help, and educational training. Its diverse client base encompasses accounting firms, financial service organizations, and various software enterprises. Established in 2006, Bill.com Holdings, Inc. maintains its corporate headquarters in San Jose, California.

BILL (Bill.com Holdings, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.54B, a beta of 1.18 versus the broader market, a 52-week range of 31.41-57.21, average daily share volume of 2.5M, a public-listing history dating back to 2019, approximately 2K full-time employees. These structural characteristics shape how BILL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places BILL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on BILL?

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 BILL snapshot

As of June 30, 2026, spot at $36.34, ATM IV 61.27%, IV rank 41.02%, expected move 17.57%. The collar on BILL 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 31-day expiry.

Why this collar structure on BILL specifically: IV regime affects collar pricing on both sides; mid-range BILL IV at 61.27% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.57% (roughly $6.38 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BILL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BILL should anchor to the underlying notional of $36.34 per share and to the trader's directional view on BILL stock.

BILL collar setup

The BILL 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 BILL near $36.34, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BILL chain at a 31-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 BILL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$36.34	long
Sell 1	Call	$38.00	$1.95
Buy 1	Put	$35.00	$1.88

BILL collar risk and reward

Net Premium / Debit: -$3,626.50
Max Profit (per contract): $173.50
Max Loss (per contract): -$126.50
Breakeven(s): $36.27
Risk / Reward Ratio: 1.372

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.

BILL collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BILL. 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%	-$126.50
$8.04	-77.9%	-$126.50
$16.08	-55.8%	-$126.50
$24.11	-33.6%	-$126.50
$32.15	-11.5%	-$126.50
$40.18	+10.6%	+$173.50
$48.21	+32.7%	+$173.50
$56.25	+54.8%	+$173.50
$64.28	+76.9%	+$173.50
$72.31	+99.0%	+$173.50

When traders use collar on BILL

Collars on BILL hedge an existing long BILL 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.

BILL thesis for this collar

The market-implied 1-standard-deviation range for BILL extends from approximately $29.96 on the downside to $42.72 on the upside. A BILL collar hedges an existing long BILL 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 BILL IV rank near 41.02% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BILL should anchor more to the directional view and the expected-move geometry. As a Technology name, BILL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BILL-specific events.

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

Frequently asked questions

What is a collar on BILL?: A collar on BILL is the collar strategy applied to BILL (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 BILL stock trading near $36.34, the strikes shown on this page are snapped to the nearest listed BILL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BILL 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 BILL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.27%), the computed maximum profit is $173.50 per contract and the computed maximum loss is -$126.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BILL collar?: The breakeven for the BILL collar priced on this page is roughly $36.27 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 BILL market-implied 1-standard-deviation expected move is approximately 17.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BILL?: Collars on BILL hedge an existing long BILL 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 BILL implied volatility affect this collar?: BILL ATM IV is at 61.27% with IV rank near 41.02%, 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.