How are CFG 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 CFG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 21.30%), the computed maximum profit is $337.50 per contract and the computed maximum loss is -$412.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CFG collar?

The breakeven for the CFG collar priced on this page is roughly $74.13 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 CFG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CFG implied volatility affect this collar?

CFG ATM IV is at 21.30% with IV rank near 3.20%, 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.

CFG Collar Strategy

CFG (Citizens Financial Group, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Citizens Financial Group, Inc. (CFG) functions as the holding company for Citizens Bank, National Association, a major financial institution offering a comprehensive suite of retail and commercial banking solutions across the United States. It serves a broad spectrum of clients, from individual consumers and small enterprises to large corporations and various institutions. Its business is segmented into two primary divisions: Consumer Banking and Commercial Banking. The Consumer Banking division delivers a robust array of products, encompassing deposit accounts, mortgage and home equity lending, credit cards, and business loans for smaller entities. It also provides wealth management, investment services, and specialized financing for areas like auto, education, and point-of-sale purchases, alongside digital deposit solutions. Clients engage with this segment through contact centers and its advanced online and mobile banking platforms.

CFG (Citizens Financial Group, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $31.26B, a trailing P/E of 14.70, a beta of 1.01 versus the broader market, a 52-week range of 47.92-74.7, average daily share volume of 4.5M, a public-listing history dating back to 2014, approximately 18K full-time employees. These structural characteristics shape how CFG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places CFG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CFG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on CFG?

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.

CFG snapshot

As of August 14, 2026, spot at $74.70, ATM IV 21.30%, IV rank 3.20%, expected move 6.11%. The collar on CFG 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 63-day expiry.

Why this collar structure on CFG specifically: IV regime affects collar pricing on both sides; compressed CFG IV at 21.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.11% (roughly $4.56 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CFG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CFG should anchor to the underlying notional of $74.70 per share and to the trader's directional view on CFG stock.

CFG collar setup

The CFG 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 CFG at $74.70 on that close, the first option leg uses a $77.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CFG chain at a 63-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 CFG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$74.70	long
Sell 1	Call	$77.50	$2.00
Buy 1	Put	$70.00	$1.43

CFG collar risk and reward

Net Premium / Debit: -$7,412.50
Max Profit (per contract): $337.50
Max Loss (per contract): -$412.50
Breakeven(s): $74.13
Risk / Reward Ratio: 0.818

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.

CFG collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CFG. 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%	-$412.50
$16.53	-77.9%	-$412.50
$33.04	-55.8%	-$412.50
$49.56	-33.7%	-$412.50
$66.07	-11.6%	-$412.50
$82.59	+10.6%	+$337.50
$99.10	+32.7%	+$337.50
$115.62	+54.8%	+$337.50
$132.13	+76.9%	+$337.50
$148.65	+99.0%	+$337.50

When traders use collar on CFG

Collars on CFG hedge an existing long CFG 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.

CFG thesis for this collar

The market-implied 1-standard-deviation range for CFG extends from approximately $70.14 on the downside to $79.26 on the upside. A CFG collar hedges an existing long CFG 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 CFG IV rank near 3.20% 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 CFG at 21.30%. As a Financial Services name, CFG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CFG-specific events.

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

Frequently asked questions

What is a collar on CFG?: A collar on CFG is the collar strategy applied to CFG (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 CFG stock at $74.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CFG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CFG 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 CFG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 21.30%), the computed maximum profit is $337.50 per contract and the computed maximum loss is -$412.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CFG collar?: The breakeven for the CFG collar priced on this page is roughly $74.13 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 CFG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CFG?: Collars on CFG hedge an existing long CFG 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 CFG implied volatility affect this collar?: CFG ATM IV is at 21.30% with IV rank near 3.20%, 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.