How are CNX 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 CNX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), the computed maximum profit is $189.50 per contract and the computed maximum loss is -$210.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CNX collar?

The breakeven for the CNX collar priced on this page is roughly $36.11 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 CNX market-implied 1-standard-deviation expected move is approximately 10.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CNX implied volatility affect this collar?

CNX ATM IV is at 35.20% with IV rank near 42.95%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

CNX Collar Strategy

CNX (CNX Resources Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

CNX Resources Corporation, an independent natural gas and midstream company, acquires, explores for, develops, and produces natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane. It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas in Pennsylvania, West Virginia, and Ohio from approximately 526,000 net Marcellus Shale acres; and approximately 610,000 net acres of Utica Shale, as well as rights to extract natural gas from other shale and shallow oil and gas positions from approximately 1,006,000 net acres in Illinois, Indiana, New York, Ohio, Pennsylvania, Virginia, and West Virginia. It also owns rights to extract coalbed methane (CBM) in Virginia from approximately 282,000 net CBM acres in Central Appalachia, as well as 1,733,000 net CBM acres in West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities.

CNX (CNX Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $5.01B, a trailing P/E of 4.07, a beta of 0.64 versus the broader market, a 52-week range of 27.72-43.62, average daily share volume of 2.2M, a public-listing history dating back to 1999, approximately 458 full-time employees. These structural characteristics shape how CNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates CNX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 4.07 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a collar on CNX?

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 CNX snapshot

As of May 15, 2026, spot at $36.23, ATM IV 35.20%, IV rank 42.95%, expected move 10.09%. The collar on CNX 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 CNX specifically: IV regime affects collar pricing on both sides; mid-range CNX IV at 35.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.09% (roughly $3.66 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 CNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNX should anchor to the underlying notional of $36.23 per share and to the trader's directional view on CNX stock.

CNX collar setup

The CNX 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 CNX near $36.23, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNX 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 CNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$36.23	long
Sell 1	Call	$38.00	$0.85
Buy 1	Put	$34.00	$0.73

CNX collar risk and reward

Net Premium / Debit: -$3,610.50
Max Profit (per contract): $189.50
Max Loss (per contract): -$210.50
Breakeven(s): $36.11
Risk / Reward Ratio: 0.900

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.

CNX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CNX. 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%	-$210.50
$8.02	-77.9%	-$210.50
$16.03	-55.8%	-$210.50
$24.04	-33.6%	-$210.50
$32.05	-11.5%	-$210.50
$40.06	+10.6%	+$189.50
$48.07	+32.7%	+$189.50
$56.08	+54.8%	+$189.50
$64.09	+76.9%	+$189.50
$72.10	+99.0%	+$189.50

When traders use collar on CNX

Collars on CNX hedge an existing long CNX 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.

CNX thesis for this collar

The market-implied 1-standard-deviation range for CNX extends from approximately $32.57 on the downside to $39.89 on the upside. A CNX collar hedges an existing long CNX 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 CNX IV rank near 42.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CNX should anchor more to the directional view and the expected-move geometry. As a Energy name, CNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNX-specific events.

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

Frequently asked questions

What is a collar on CNX?: A collar on CNX is the collar strategy applied to CNX (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 CNX stock trading near $36.23, the strikes shown on this page are snapped to the nearest listed CNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CNX 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 CNX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.20%), the computed maximum profit is $189.50 per contract and the computed maximum loss is -$210.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CNX collar?: The breakeven for the CNX collar priced on this page is roughly $36.11 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 CNX market-implied 1-standard-deviation expected move is approximately 10.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CNX?: Collars on CNX hedge an existing long CNX 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 CNX implied volatility affect this collar?: CNX ATM IV is at 35.20% with IV rank near 42.95%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.