How are BKNG 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 BKNG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.59%), the computed maximum profit is $1,160.50 per contract and the computed maximum loss is -$839.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BKNG collar?

The breakeven for the BKNG collar priced on this page is roughly $183.40 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 BKNG market-implied 1-standard-deviation expected move is approximately 12.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BKNG implied volatility affect this collar?

BKNG ATM IV is at 43.59% with IV rank near 73.04%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

BKNG Collar Strategy

BKNG (Booking Holdings Inc.), in the Consumer Cyclical sector, (Travel Services industry), listed on NASDAQ.

Booking Holdings Inc. is a leading global provider of online travel and dining reservation services. The company manages a portfolio of well-known digital platforms. Among these, Booking.com specializes in online accommodation bookings, while Rentalcars.com is dedicated to facilitating vehicle rentals. Priceline offers a comprehensive range of online travel booking options, encompassing hotels, flights, rental cars, vacation packages, and cruises, alongside hotel distribution services. Agoda also provides online lodging reservations, further expanding into flights, ground transportation, and activity bookings. For travelers seeking the best deals, KAYAK functions as an online price comparison service, enabling users to search and contrast prices for airline tickets, hotels, and car rentals.

BKNG (Booking Holdings Inc.) trades in the Consumer Cyclical sector, specifically Travel Services, with a market capitalization of approximately $140.61B, a trailing P/E of 23.29, a beta of 1.09 versus the broader market, a 52-week range of 150.14-233.5764, average daily share volume of 7.9M, a public-listing history dating back to 1999, approximately 25K full-time employees. These structural characteristics shape how BKNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.09 places BKNG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BKNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BKNG?

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 BKNG snapshot

As of June 29, 2026, spot at $183.42, ATM IV 43.59%, IV rank 73.04%, expected move 12.50%. The collar on BKNG 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 32-day expiry.

Why this collar structure on BKNG specifically: IV regime affects collar pricing on both sides; elevated BKNG IV at 43.59% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.50% (roughly $22.92 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BKNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on BKNG should anchor to the underlying notional of $183.42 per share and to the trader's directional view on BKNG stock.

BKNG collar setup

The BKNG 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 BKNG near $183.42, the first option leg uses a $195.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BKNG chain at a 32-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 BKNG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$183.42	long
Sell 1	Call	$195.00	$5.43
Buy 1	Put	$175.00	$5.40

BKNG collar risk and reward

Net Premium / Debit: -$18,339.50
Max Profit (per contract): $1,160.50
Max Loss (per contract): -$839.50
Breakeven(s): $183.40
Risk / Reward Ratio: 1.382

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.

BKNG collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BKNG. 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%	-$839.50
$40.56	-77.9%	-$839.50
$81.12	-55.8%	-$839.50
$121.67	-33.7%	-$839.50
$162.23	-11.6%	-$839.50
$202.78	+10.6%	+$1,160.50
$243.33	+32.7%	+$1,160.50
$283.89	+54.8%	+$1,160.50
$324.44	+76.9%	+$1,160.50
$365.00	+99.0%	+$1,160.50

When traders use collar on BKNG

Collars on BKNG hedge an existing long BKNG 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.

BKNG thesis for this collar

The market-implied 1-standard-deviation range for BKNG extends from approximately $160.50 on the downside to $206.34 on the upside. A BKNG collar hedges an existing long BKNG 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 BKNG IV rank near 73.04% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on BKNG at 43.59%. As a Consumer Cyclical name, BKNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BKNG-specific events.

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

Frequently asked questions

What is a collar on BKNG?: A collar on BKNG is the collar strategy applied to BKNG (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 BKNG stock trading near $183.42, the strikes shown on this page are snapped to the nearest listed BKNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BKNG 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 BKNG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.59%), the computed maximum profit is $1,160.50 per contract and the computed maximum loss is -$839.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BKNG collar?: The breakeven for the BKNG collar priced on this page is roughly $183.40 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 BKNG market-implied 1-standard-deviation expected move is approximately 12.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BKNG?: Collars on BKNG hedge an existing long BKNG 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 BKNG implied volatility affect this collar?: BKNG ATM IV is at 43.59% with IV rank near 73.04%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.