How are CHH 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 CHH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.80%), the computed maximum profit is $726.00 per contract and the computed maximum loss is -$774.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHH collar?

The breakeven for the CHH collar priced on this page is roughly $107.74 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 CHH market-implied 1-standard-deviation expected move is approximately 10.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHH implied volatility affect this collar?

CHH ATM IV is at 35.80% with IV rank near 4.58%, 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.

CHH Collar Strategy

CHH (Choice Hotels International, Inc.), in the Consumer Cyclical sector, (Travel Lodging industry), listed on NYSE.

Choice Hotels International, Inc., together with its subsidiaries, operates as a hotel franchisor worldwide. The company operates in Hotel Franchising and Corporate & Other segments. It franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Everhome Suites, Cambria Hotels, and Ascend Hotel Collection. The company also develops and markets cloud-based property management software to non-franchised hoteliers. As of March 31, 2022, it had approximately 7,000 hotels with approximately 600,000 rooms in 35 countries and territories. Choice Hotels International, Inc. was founded in 1939 and is headquartered in Rockville, Maryland.

CHH (Choice Hotels International, Inc.) trades in the Consumer Cyclical sector, specifically Travel Lodging, with a market capitalization of approximately $4.87B, a trailing P/E of 14.28, a beta of 0.65 versus the broader market, a 52-week range of 84.04-136.45, average daily share volume of 626K, a public-listing history dating back to 1996, approximately 2K full-time employees. These structural characteristics shape how CHH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates CHH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on CHH?

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 CHH snapshot

As of May 15, 2026, spot at $107.49, ATM IV 35.80%, IV rank 4.58%, expected move 10.26%. The collar on CHH 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 CHH specifically: IV regime affects collar pricing on both sides; compressed CHH IV at 35.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.26% (roughly $11.03 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 CHH expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHH should anchor to the underlying notional of $107.49 per share and to the trader's directional view on CHH stock.

CHH collar setup

The CHH 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 CHH near $107.49, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHH 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 CHH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$107.49	long
Sell 1	Call	$115.00	$1.53
Buy 1	Put	$100.00	$1.78

CHH collar risk and reward

Net Premium / Debit: -$10,774.00
Max Profit (per contract): $726.00
Max Loss (per contract): -$774.00
Breakeven(s): $107.74
Risk / Reward Ratio: 0.938

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.

CHH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CHH. 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%	-$774.00
$23.78	-77.9%	-$774.00
$47.54	-55.8%	-$774.00
$71.31	-33.7%	-$774.00
$95.07	-11.6%	-$774.00
$118.84	+10.6%	+$726.00
$142.60	+32.7%	+$726.00
$166.37	+54.8%	+$726.00
$190.13	+76.9%	+$726.00
$213.90	+99.0%	+$726.00

When traders use collar on CHH

Collars on CHH hedge an existing long CHH 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.

CHH thesis for this collar

The market-implied 1-standard-deviation range for CHH extends from approximately $96.46 on the downside to $118.52 on the upside. A CHH collar hedges an existing long CHH 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 CHH IV rank near 4.58% 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 CHH at 35.80%. As a Consumer Cyclical name, CHH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHH-specific events.

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

Frequently asked questions

What is a collar on CHH?: A collar on CHH is the collar strategy applied to CHH (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 CHH stock trading near $107.49, the strikes shown on this page are snapped to the nearest listed CHH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHH 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 CHH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.80%), the computed maximum profit is $726.00 per contract and the computed maximum loss is -$774.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHH collar?: The breakeven for the CHH collar priced on this page is roughly $107.74 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 CHH market-implied 1-standard-deviation expected move is approximately 10.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CHH?: Collars on CHH hedge an existing long CHH 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 CHH implied volatility affect this collar?: CHH ATM IV is at 35.80% with IV rank near 4.58%, 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.