How are BSX 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 BSX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.61%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BSX collar?

The breakeven for the BSX collar priced on this page is roughly $42.75 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 BSX market-implied 1-standard-deviation expected move is approximately 14.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BSX implied volatility affect this collar?

BSX ATM IV is at 50.61% with IV rank near 96.44%, 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.

BSX Collar Strategy

BSX (Boston Scientific Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.

Boston Scientific Corporation (BSX) operates as a global leader in medical technology, specializing in the design, manufacturing, and commercialization of innovative medical devices tailored for a diverse array of interventional medical specialties across the globe. Its business is strategically organized into three principal segments: MedSurg, Rhythm and Neuro, and Cardiovascular. Within these divisions, the company provides a comprehensive portfolio of solutions addressing various gastrointestinal and pulmonary ailments, as well as urological and pelvic health concerns. This extends to advanced implantable devices for managing cardiac rhythm disorders, such as cardioverter-defibrillators, cardiac resynchronization therapy devices, and pacemakers, complemented by remote patient management systems. Furthermore, Boston Scientific offers sophisticated technologies for diagnosing and treating complex heart rate and rhythm irregularities. These encompass 3-D cardiac mapping and navigation tools, along with a suite of specialized catheters (including ablation, diagnostic, mapping, and intracardiac ultrasound types), delivery sheaths, and related accessories.

BSX (Boston Scientific Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $65.74B, a trailing P/E of 18.49, a beta of 0.56 versus the broader market, a 52-week range of 43.89-109.5, average daily share volume of 20.4M, a public-listing history dating back to 1992, approximately 53K full-time employees. These structural characteristics shape how BSX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.56 indicates BSX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on BSX?

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 BSX snapshot

As of June 30, 2026, spot at $42.80, ATM IV 50.61%, IV rank 96.44%, expected move 14.51%. The collar on BSX 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 BSX specifically: IV regime affects collar pricing on both sides; elevated BSX IV at 50.61% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.51% (roughly $6.21 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 BSX expiries trade a higher absolute premium for lower per-day decay. Position sizing on BSX should anchor to the underlying notional of $42.80 per share and to the trader's directional view on BSX stock.

BSX collar setup

The BSX 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 BSX near $42.80, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BSX 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 BSX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$42.80	long
Sell 1	Call	$45.00	$1.78
Buy 1	Put	$41.00	$1.73

BSX collar risk and reward

Net Premium / Debit: -$4,275.00
Max Profit (per contract): $225.00
Max Loss (per contract): -$175.00
Breakeven(s): $42.75
Risk / Reward Ratio: 1.286

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.

BSX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BSX. 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%	-$175.00
$9.47	-77.9%	-$175.00
$18.93	-55.8%	-$175.00
$28.40	-33.7%	-$175.00
$37.86	-11.5%	-$175.00
$47.32	+10.6%	+$225.00
$56.78	+32.7%	+$225.00
$66.25	+54.8%	+$225.00
$75.71	+76.9%	+$225.00
$85.17	+99.0%	+$225.00

When traders use collar on BSX

Collars on BSX hedge an existing long BSX 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.

BSX thesis for this collar

The market-implied 1-standard-deviation range for BSX extends from approximately $36.59 on the downside to $49.01 on the upside. A BSX collar hedges an existing long BSX 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 BSX IV rank near 96.44% 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 BSX at 50.61%. As a Healthcare name, BSX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BSX-specific events.

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

Frequently asked questions

What is a collar on BSX?: A collar on BSX is the collar strategy applied to BSX (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 BSX stock trading near $42.80, the strikes shown on this page are snapped to the nearest listed BSX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BSX 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 BSX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.61%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$175.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BSX collar?: The breakeven for the BSX collar priced on this page is roughly $42.75 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 BSX market-implied 1-standard-deviation expected move is approximately 14.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BSX?: Collars on BSX hedge an existing long BSX 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 BSX implied volatility affect this collar?: BSX ATM IV is at 50.61% with IV rank near 96.44%, 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.