How are CHEF 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 CHEF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $440.50 per contract and the computed maximum loss is -$559.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHEF collar?

The breakeven for the CHEF collar priced on this page is roughly $95.60 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 CHEF market-implied 1-standard-deviation expected move is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHEF implied volatility affect this collar?

CHEF ATM IV is at 37.90% with IV rank near 11.04%, 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.

CHEF Collar Strategy

CHEF (The Chefs' Warehouse, Inc.), in the Consumer Defensive sector, (Food Distribution industry), listed on NASDAQ.

The Chefs' Warehouse, Inc. (CHEF), operating through its various subsidiaries, focuses on supplying high-end and gourmet food products across both the United States and Canada. The company maintains an extensive catalog, featuring more than 50,000 distinct stock-keeping units. This vast selection encompasses a diverse array of specialty items, such as artisanal charcuterie, premium cheeses, unique oils and vinegars, truffles, caviar, exquisite chocolates, and various pastry essentials. Beyond these niche offerings, Chefs' Warehouse also provides "center-of-the-plate" proteins, including custom-cut beef, fresh seafood, and hormone-free poultry. Their inventory further extends to everyday kitchen staples like cooking oils, butter, eggs, milk, and flour. The company serves a broad spectrum of professional culinary clients, which includes independent restaurants with distinctive menus, fine dining establishments, country clubs, hotels, catering services, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialized food retailers.

CHEF (The Chefs' Warehouse, Inc.) trades in the Consumer Defensive sector, specifically Food Distribution, with a market capitalization of approximately $3.91B, a trailing P/E of 46.84, a beta of 1.44 versus the broader market, a 52-week range of 53.2-97.63, average daily share volume of 492K, a public-listing history dating back to 2011, approximately 5K full-time employees. These structural characteristics shape how CHEF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.44 indicates CHEF has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 46.84 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a collar on CHEF?

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 CHEF snapshot

As of June 29, 2026, spot at $95.37, ATM IV 37.90%, IV rank 11.04%, expected move 10.87%. The collar on CHEF 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 18-day expiry.

Why this collar structure on CHEF specifically: IV regime affects collar pricing on both sides; compressed CHEF IV at 37.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.87% (roughly $10.36 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CHEF expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHEF should anchor to the underlying notional of $95.37 per share and to the trader's directional view on CHEF stock.

CHEF collar setup

The CHEF 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 CHEF near $95.37, 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 CHEF chain at a 18-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 CHEF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$95.37	long
Sell 1	Call	$100.00	$1.35
Buy 1	Put	$90.00	$1.58

CHEF collar risk and reward

Net Premium / Debit: -$9,559.50
Max Profit (per contract): $440.50
Max Loss (per contract): -$559.50
Breakeven(s): $95.60
Risk / Reward Ratio: 0.787

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.

CHEF collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CHEF. 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%	-$559.50
$21.10	-77.9%	-$559.50
$42.18	-55.8%	-$559.50
$63.27	-33.7%	-$559.50
$84.35	-11.6%	-$559.50
$105.44	+10.6%	+$440.50
$126.52	+32.7%	+$440.50
$147.61	+54.8%	+$440.50
$168.70	+76.9%	+$440.50
$189.78	+99.0%	+$440.50

When traders use collar on CHEF

Collars on CHEF hedge an existing long CHEF 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.

CHEF thesis for this collar

The market-implied 1-standard-deviation range for CHEF extends from approximately $85.01 on the downside to $105.73 on the upside. A CHEF collar hedges an existing long CHEF 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 CHEF IV rank near 11.04% 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 CHEF at 37.90%. As a Consumer Defensive name, CHEF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHEF-specific events.

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

Frequently asked questions

What is a collar on CHEF?: A collar on CHEF is the collar strategy applied to CHEF (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 CHEF stock trading near $95.37, the strikes shown on this page are snapped to the nearest listed CHEF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHEF 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 CHEF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is $440.50 per contract and the computed maximum loss is -$559.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHEF collar?: The breakeven for the CHEF collar priced on this page is roughly $95.60 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 CHEF market-implied 1-standard-deviation expected move is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CHEF?: Collars on CHEF hedge an existing long CHEF 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 CHEF implied volatility affect this collar?: CHEF ATM IV is at 37.90% with IV rank near 11.04%, 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.