How are BYD 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 BYD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.80%), the computed maximum profit is $397.00 per contract and the computed maximum loss is -$353.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BYD collar?

The breakeven for the BYD collar priced on this page is roughly $83.53 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 BYD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BYD implied volatility affect this collar?

BYD ATM IV is at 24.80% with IV rank near 24.31%, 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.

BYD Collar Strategy

BYD (Boyd Gaming Corporation), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NYSE.

Boyd Gaming Corporation, together with its subsidiaries, operates as a multi-jurisdictional gaming company in the United States and Canada. The company operates through Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online segments. It owns and operates casinos; Boyd Interactive, an online casino gaming business; and a travel agency. The company was formerly known as The Boyd Group and changed its name to Boyd Gaming Corporation in April 1993. Boyd Gaming Corporation was founded in 1975 and is headquartered in Las Vegas, Nevada.

BYD (Boyd Gaming Corporation) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $6.03B, a trailing P/E of 3.42, a beta of 1.08 versus the broader market, a 52-week range of 76.33-91.41, average daily share volume of 990K, a public-listing history dating back to 1993, approximately 16K full-time employees. These structural characteristics shape how BYD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.08 places BYD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 3.42 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. BYD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BYD?

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.

BYD snapshot

As of August 14, 2026, spot at $83.83, ATM IV 24.80%, IV rank 24.31%, expected move 7.11%. The collar on BYD 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 BYD specifically: IV regime affects collar pricing on both sides; compressed BYD IV at 24.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.11% (roughly $5.96 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 BYD expiries trade a higher absolute premium for lower per-day decay. Position sizing on BYD should anchor to the underlying notional of $83.83 per share and to the trader's directional view on BYD stock.

BYD collar setup

The BYD 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 BYD at $83.83 on that close, the first option leg uses a $87.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BYD 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 BYD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$83.83	long
Sell 1	Call	$87.50	$1.13
Buy 1	Put	$80.00	$0.83

BYD collar risk and reward

Net Premium / Debit: -$8,353.00
Max Profit (per contract): $397.00
Max Loss (per contract): -$353.00
Breakeven(s): $83.53
Risk / Reward Ratio: 1.125

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.

BYD collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BYD. 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%	-$353.00
$18.54	-77.9%	-$353.00
$37.08	-55.8%	-$353.00
$55.61	-33.7%	-$353.00
$74.15	-11.6%	-$353.00
$92.68	+10.6%	+$397.00
$111.22	+32.7%	+$397.00
$129.75	+54.8%	+$397.00
$148.28	+76.9%	+$397.00
$166.82	+99.0%	+$397.00

When traders use collar on BYD

Collars on BYD hedge an existing long BYD 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.

BYD thesis for this collar

The market-implied 1-standard-deviation range for BYD extends from approximately $77.87 on the downside to $89.79 on the upside. A BYD collar hedges an existing long BYD 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 BYD IV rank near 24.31% 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 BYD at 24.80%. As a Consumer Cyclical name, BYD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BYD-specific events.

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

Frequently asked questions

What is a collar on BYD?: A collar on BYD is the collar strategy applied to BYD (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 BYD stock at $83.83 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BYD chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BYD 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 BYD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.80%), the computed maximum profit is $397.00 per contract and the computed maximum loss is -$353.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BYD collar?: The breakeven for the BYD collar priced on this page is roughly $83.53 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 BYD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BYD?: Collars on BYD hedge an existing long BYD 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 BYD implied volatility affect this collar?: BYD ATM IV is at 24.80% with IV rank near 24.31%, 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.