How are C 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 C collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.52%), the computed maximum profit is $749.50 per contract and the computed maximum loss is -$650.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a C collar?

The breakeven for the C collar priced on this page is roughly $142.51 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 C market-implied 1-standard-deviation expected move is approximately 9.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current C implied volatility affect this collar?

C ATM IV is at 32.52% with IV rank near 40.02%, 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.

C Collar Strategy

C (Citigroup Inc.), in the Financial Services sector, (Banks - Diversified industry), listed on NYSE.

Citigroup, Inc. is a holding company, which engages in the provision of financial products and services. It operates through the following segments: Services, Markets, Banking, Wealth, U.S. Personal Banking (USPB), and All Other. The Services segment includes Treasury and Trade Solutions (TTS) which provides an integrated suite of tailored cash management, trade, and working capital solutions to multinational corporations, financial institutions and public sector organizations, and Securities Services, which offers cross-border support for clients, providing on-the-ground local market expertise, post-trade technologies, customized data solutions, and a wide range of securities services solutions that can be tailored to meet client needs. The Markets segment provides corporate, institutional, and public sector clients around the world with a full range of sales and trading services across equities, foreign exchange, rates, spread products, and commodities. The Banking segment offers Investment Banking and Corporate Lending services.

C (Citigroup Inc.) trades in the Financial Services sector, specifically Banks - Diversified, with a market capitalization of approximately $241.65B, a trailing P/E of 15.39, a beta of 1.12 versus the broader market, a 52-week range of 83.81-147.96, average daily share volume of 12.3M, a public-listing history dating back to 1977, approximately 226K full-time employees. These structural characteristics shape how C stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.12 places C roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. C pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on C?

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 C snapshot

As of June 29, 2026, spot at $142.76, ATM IV 32.52%, IV rank 40.02%, expected move 9.32%. The collar on C 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 C specifically: IV regime affects collar pricing on both sides; mid-range C IV at 32.52% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.32% (roughly $13.31 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 C expiries trade a higher absolute premium for lower per-day decay. Position sizing on C should anchor to the underlying notional of $142.76 per share and to the trader's directional view on C stock.

C collar setup

The C 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 C near $142.76, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed C 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 C shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$142.76	long
Sell 1	Call	$150.00	$2.80
Buy 1	Put	$136.00	$2.55

C collar risk and reward

Net Premium / Debit: -$14,250.50
Max Profit (per contract): $749.50
Max Loss (per contract): -$650.50
Breakeven(s): $142.51
Risk / Reward Ratio: 1.152

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.

C collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on C. 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%	-$650.50
$31.57	-77.9%	-$650.50
$63.14	-55.8%	-$650.50
$94.70	-33.7%	-$650.50
$126.27	-11.6%	-$650.50
$157.83	+10.6%	+$749.50
$189.39	+32.7%	+$749.50
$220.96	+54.8%	+$749.50
$252.52	+76.9%	+$749.50
$284.09	+99.0%	+$749.50

When traders use collar on C

Collars on C hedge an existing long C 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.

C thesis for this collar

The market-implied 1-standard-deviation range for C extends from approximately $129.45 on the downside to $156.07 on the upside. A C collar hedges an existing long C 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 C IV rank near 40.02% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on C should anchor more to the directional view and the expected-move geometry. As a Financial Services name, C options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to C-specific events.

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

Frequently asked questions

What is a collar on C?: A collar on C is the collar strategy applied to C (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 C stock trading near $142.76, the strikes shown on this page are snapped to the nearest listed C chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are C 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 C collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.52%), the computed maximum profit is $749.50 per contract and the computed maximum loss is -$650.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a C collar?: The breakeven for the C collar priced on this page is roughly $142.51 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 C market-implied 1-standard-deviation expected move is approximately 9.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on C?: Collars on C hedge an existing long C 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 C implied volatility affect this collar?: C ATM IV is at 32.52% with IV rank near 40.02%, 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.