How are BTSG 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 BTSG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.10%), the computed maximum profit is $299.00 per contract and the computed maximum loss is -$201.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BTSG collar?

The breakeven for the BTSG collar priced on this page is roughly $62.01 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BTSG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BTSG implied volatility affect this collar?

BTSG ATM IV is at 42.10% with IV rank near 28.89%, 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.

BTSG Collar Strategy

BTSG (BrightSpring Health Services, Inc. Common Stock), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.

BrightSpring Health Services, Inc. operates across the United States, offering a range of healthcare solutions directly within patients' homes and local communities. The company's extensive platform focuses on providing crucial pharmacy and medical provider services, including both clinical care and supportive assistance, to individuals covered by Medicare, Medicaid, and private insurance. Patients receive care from a dedicated team of clinical professionals and licensed pharmacists. Formerly known as Phoenix Parent Holdings Inc., the company officially adopted the name BrightSpring Health Services, Inc. in May 2021. Founded in 1974, its headquarters are located in Louisville, Kentucky.

BTSG (BrightSpring Health Services, Inc. Common Stock) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $12.11B, a trailing P/E of 43.24, a beta of 1.88 versus the broader market, a 52-week range of 22.46-73.75, average daily share volume of 3.5M, a public-listing history dating back to 2024, approximately 24K full-time employees. These structural characteristics shape how BTSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.88 indicates BTSG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 43.24 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.

What is a collar on BTSG?

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.

BTSG snapshot

As of August 14, 2026, spot at $61.46, ATM IV 42.10%, IV rank 28.89%, expected move 12.07%. The collar on BTSG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on BTSG specifically: IV regime affects collar pricing on both sides; compressed BTSG IV at 42.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.07% (roughly $7.42 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BTSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTSG should anchor to the underlying notional of $61.46 per share and to the trader's directional view on BTSG stock.

BTSG collar setup

The BTSG collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BTSG at $61.46 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTSG chain at a 35-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 BTSG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$61.46	long
Sell 1	Call	$65.00	$1.85
Buy 1	Put	$60.00	$2.40

BTSG collar risk and reward

Net Premium / Debit: -$6,201.00
Max Profit (per contract): $299.00
Max Loss (per contract): -$201.00
Breakeven(s): $62.01
Risk / Reward Ratio: 1.488

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.

BTSG collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BTSG. 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%	-$201.00
$13.60	-77.9%	-$201.00
$27.19	-55.8%	-$201.00
$40.77	-33.7%	-$201.00
$54.36	-11.5%	-$201.00
$67.95	+10.6%	+$299.00
$81.54	+32.7%	+$299.00
$95.13	+54.8%	+$299.00
$108.71	+76.9%	+$299.00
$122.30	+99.0%	+$299.00

When traders use collar on BTSG

Collars on BTSG hedge an existing long BTSG 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.

BTSG thesis for this collar

The market-implied 1-standard-deviation range for BTSG extends from approximately $54.04 on the downside to $68.88 on the upside. A BTSG collar hedges an existing long BTSG 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 BTSG IV rank near 28.89% 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 BTSG at 42.10%. As a Healthcare name, BTSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTSG-specific events.

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

Frequently asked questions

What is a collar on BTSG?: A collar on BTSG is the collar strategy applied to BTSG (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 BTSG stock at $61.46 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BTSG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BTSG 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 BTSG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.10%), the computed maximum profit is $299.00 per contract and the computed maximum loss is -$201.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BTSG collar?: The breakeven for the BTSG collar priced on this page is roughly $62.01 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BTSG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BTSG?: Collars on BTSG hedge an existing long BTSG 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 BTSG implied volatility affect this collar?: BTSG ATM IV is at 42.10% with IV rank near 28.89%, 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.