How are CNM 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 CNM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $168.00 per contract and the computed maximum loss is -$332.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CNM collar?

The breakeven for the CNM collar priced on this page is roughly $45.82 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 CNM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CNM implied volatility affect this collar?

CNM ATM IV is at 40.00% with IV rank near 5.95%, 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.

CNM Collar Strategy

CNM (Core & Main, Inc.), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.

Core & Main, Inc. (CNM) is a leading supplier of vital infrastructure products and services across the United States. The company specializes in providing comprehensive solutions for water, wastewater, storm drainage, and fire protection systems. Their diverse clientele includes local governments (municipalities), privately owned water utilities, and a wide array of professional contractors working on projects in the residential, non-residential (commercial), and public sectors. Core & Main's extensive product range features essential components such as pipes, valves, hydrants, and fittings. For storm drainage needs, they offer systems including corrugated piping, retention basins, inline drains, manholes, grates, and geosynthetics. Their fire protection inventory covers crucial items like fire protection pipes, sprinkler heads, complete fire suppression systems, related accessories, and specialized fabrication services.

CNM (Core & Main, Inc.) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $8.62B, a trailing P/E of 19.32, a beta of 0.92 versus the broader market, a 52-week range of 41.875-67.18, average daily share volume of 2.4M, a public-listing history dating back to 2021, approximately 6K full-time employees. These structural characteristics shape how CNM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.92 places CNM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CNM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on CNM?

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.

CNM snapshot

As of August 14, 2026, spot at $45.87, ATM IV 40.00%, IV rank 5.95%, expected move 11.47%. The collar on CNM 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 35-day expiry.

Why this collar structure on CNM specifically: IV regime affects collar pricing on both sides; compressed CNM IV at 40.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.47% (roughly $5.26 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNM should anchor to the underlying notional of $45.87 per share and to the trader's directional view on CNM stock.

CNM collar setup

The CNM 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 CNM at $45.87 on that close, the first option leg uses a $47.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNM chain at a 35-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 CNM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$45.87	long
Sell 1	Call	$47.50	$1.25
Buy 1	Put	$42.50	$1.20

CNM collar risk and reward

Net Premium / Debit: -$4,582.00
Max Profit (per contract): $168.00
Max Loss (per contract): -$332.00
Breakeven(s): $45.82
Risk / Reward Ratio: 0.506

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.

CNM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CNM. 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%	-$332.00
$10.15	-77.9%	-$332.00
$20.29	-55.8%	-$332.00
$30.43	-33.7%	-$332.00
$40.57	-11.5%	-$332.00
$50.72	+10.6%	+$168.00
$60.86	+32.7%	+$168.00
$71.00	+54.8%	+$168.00
$81.14	+76.9%	+$168.00
$91.28	+99.0%	+$168.00

When traders use collar on CNM

Collars on CNM hedge an existing long CNM 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.

CNM thesis for this collar

The market-implied 1-standard-deviation range for CNM extends from approximately $40.61 on the downside to $51.13 on the upside. A CNM collar hedges an existing long CNM 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 CNM IV rank near 5.95% 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 CNM at 40.00%. As a Industrials name, CNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNM-specific events.

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

Frequently asked questions

What is a collar on CNM?: A collar on CNM is the collar strategy applied to CNM (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 CNM stock at $45.87 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CNM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CNM 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 CNM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $168.00 per contract and the computed maximum loss is -$332.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CNM collar?: The breakeven for the CNM collar priced on this page is roughly $45.82 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 CNM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CNM?: Collars on CNM hedge an existing long CNM 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 CNM implied volatility affect this collar?: CNM ATM IV is at 40.00% with IV rank near 5.95%, 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.