How are CHD 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 CHD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is $384.50 per contract and the computed maximum loss is -$615.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHD collar?

The breakeven for the CHD collar priced on this page is roughly $96.16 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 CHD market-implied 1-standard-deviation expected move is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHD implied volatility affect this collar?

CHD ATM IV is at 30.40% with IV rank near 5.41%, 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.

CHD Collar Strategy

CHD (Church & Dwight Co., Inc.), in the Consumer Defensive sector, (Household & Personal Products industry), listed on NYSE.

Church & Dwight Co., Inc. is a company dedicated to the creation, production, and marketing of a diverse portfolio encompassing household, personal care, and specialized industrial goods. Its operations are structured into three principal divisions: Consumer Domestic, Consumer International, and the Specialty Products Division. The company offers a broad array of well-known consumer brands. Under the ARM & HAMMER umbrella, it provides cat litters, carpet fresheners, laundry detergents, baking soda, and various other baking soda-based items. Sexual health products, including condoms, lubricants, and vibrators, are marketed under the TROJAN brand. OXICLEAN delivers stain removers, cleaning solutions, laundry detergents, and bleach alternatives.

CHD (Church & Dwight Co., Inc.) trades in the Consumer Defensive sector, specifically Household & Personal Products, with a market capitalization of approximately $23.55B, a trailing P/E of 32.06, a beta of 0.47 versus the broader market, a 52-week range of 81.33-106.04, average daily share volume of 2.0M, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how CHD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.47 indicates CHD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on CHD?

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 CHD snapshot

As of June 29, 2026, spot at $96.83, ATM IV 30.40%, IV rank 5.41%, expected move 8.72%. The collar on CHD 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 53-day expiry.

Why this collar structure on CHD specifically: IV regime affects collar pricing on both sides; compressed CHD IV at 30.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.72% (roughly $8.44 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHD should anchor to the underlying notional of $96.83 per share and to the trader's directional view on CHD stock.

CHD collar setup

The CHD 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 CHD near $96.83, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHD chain at a 53-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 CHD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$96.83	long
Sell 1	Call	$100.00	$2.13
Buy 1	Put	$90.00	$1.45

CHD collar risk and reward

Net Premium / Debit: -$9,615.50
Max Profit (per contract): $384.50
Max Loss (per contract): -$615.50
Breakeven(s): $96.16
Risk / Reward Ratio: 0.625

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.

CHD collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CHD. 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%	-$615.50
$21.42	-77.9%	-$615.50
$42.83	-55.8%	-$615.50
$64.24	-33.7%	-$615.50
$85.64	-11.6%	-$615.50
$107.05	+10.6%	+$384.50
$128.46	+32.7%	+$384.50
$149.87	+54.8%	+$384.50
$171.28	+76.9%	+$384.50
$192.69	+99.0%	+$384.50

When traders use collar on CHD

Collars on CHD hedge an existing long CHD 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.

CHD thesis for this collar

The market-implied 1-standard-deviation range for CHD extends from approximately $88.39 on the downside to $105.27 on the upside. A CHD collar hedges an existing long CHD 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 CHD IV rank near 5.41% 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 CHD at 30.40%. As a Consumer Defensive name, CHD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHD-specific events.

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

Frequently asked questions

What is a collar on CHD?: A collar on CHD is the collar strategy applied to CHD (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 CHD stock trading near $96.83, the strikes shown on this page are snapped to the nearest listed CHD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHD 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 CHD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.40%), the computed maximum profit is $384.50 per contract and the computed maximum loss is -$615.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHD collar?: The breakeven for the CHD collar priced on this page is roughly $96.16 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 CHD market-implied 1-standard-deviation expected move is approximately 8.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CHD?: Collars on CHD hedge an existing long CHD 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 CHD implied volatility affect this collar?: CHD ATM IV is at 30.40% with IV rank near 5.41%, 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.