How are CHE 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 CHE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $2,355.00 per contract and the computed maximum loss is -$2,645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHE collar?

The breakeven for the CHE collar priced on this page is roughly $436.45 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 CHE market-implied 1-standard-deviation expected move is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHE implied volatility affect this collar?

CHE ATM IV is at 23.90% with IV rank near 19.01%, 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.

CHE Collar Strategy

CHE (Chemed Corporation), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in two segments, VITAS and Roto-Rooter. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.

CHE (Chemed Corporation) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $5.63B, a trailing P/E of 22.32, a beta of 0.54 versus the broader market, a 52-week range of 365.21-583.96, average daily share volume of 271K, a public-listing history dating back to 1973, approximately 16K full-time employees. These structural characteristics shape how CHE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates CHE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on CHE?

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 CHE snapshot

As of May 15, 2026, spot at $434.70, ATM IV 23.90%, IV rank 19.01%, expected move 6.85%. The collar on CHE 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 34-day expiry.

Why this collar structure on CHE specifically: IV regime affects collar pricing on both sides; compressed CHE IV at 23.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $29.79 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHE should anchor to the underlying notional of $434.70 per share and to the trader's directional view on CHE stock.

CHE collar setup

The CHE 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 CHE near $434.70, the first option leg uses a $460.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHE chain at a 34-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 CHE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$434.70	long
Sell 1	Call	$460.00	$3.48
Buy 1	Put	$410.00	$5.23

CHE collar risk and reward

Net Premium / Debit: -$43,645.00
Max Profit (per contract): $2,355.00
Max Loss (per contract): -$2,645.00
Breakeven(s): $436.45
Risk / Reward Ratio: 0.890

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.

CHE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CHE. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$2,645.00
$96.12	-77.9%	-$2,645.00
$192.24	-55.8%	-$2,645.00
$288.35	-33.7%	-$2,645.00
$384.46	-11.6%	-$2,645.00
$480.58	+10.6%	+$2,355.00
$576.69	+32.7%	+$2,355.00
$672.80	+54.8%	+$2,355.00
$768.92	+76.9%	+$2,355.00
$865.03	+99.0%	+$2,355.00

When traders use collar on CHE

Collars on CHE hedge an existing long CHE 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.

CHE thesis for this collar

The market-implied 1-standard-deviation range for CHE extends from approximately $404.91 on the downside to $464.49 on the upside. A CHE collar hedges an existing long CHE 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 CHE IV rank near 19.01% 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 CHE at 23.90%. As a Healthcare name, CHE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHE-specific events.

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

Frequently asked questions

What is a collar on CHE?: A collar on CHE is the collar strategy applied to CHE (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 CHE stock trading near $434.70, the strikes shown on this page are snapped to the nearest listed CHE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHE 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 CHE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $2,355.00 per contract and the computed maximum loss is -$2,645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHE collar?: The breakeven for the CHE collar priced on this page is roughly $436.45 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 CHE market-implied 1-standard-deviation expected move is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CHE?: Collars on CHE hedge an existing long CHE 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 CHE implied volatility affect this collar?: CHE ATM IV is at 23.90% with IV rank near 19.01%, 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.