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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is $212.50 per contract and the computed maximum loss is -$187.50 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 $35.88 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 CNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.88%; 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 27.50% with IV rank near 2.65%, 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.

CNX Collar Strategy

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

CNX Resources Corporation operates as an independent company primarily focused on natural gas and midstream activities. Its core business involves the acquisition, exploration, development, and production of natural gas properties, predominantly situated within the Appalachian Basin. The company's operations are structured into two distinct segments: Shale and Coalbed Methane. CNX is a producer and supplier of pipeline-grade natural gas, primarily serving wholesale customers. Its extensive asset portfolio includes significant natural gas extraction rights. Specifically, it holds mineral rights across: Approximately 526,000 net acres in the Marcellus Shale, located in Pennsylvania, West Virginia, and Ohio.

CNX (CNX Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $5.29B, a trailing P/E of 5.58, a beta of 0.61 versus the broader market, a 52-week range of 27.72-43.62, average daily share volume of 1.9M, a public-listing history dating back to 1999, approximately 390 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 0.61 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 5.58 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

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.

CNX snapshot

As of August 14, 2026, spot at $35.75, ATM IV 27.50%, IV rank 2.65%, expected move 7.88%. The collar on CNX 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 CNX specifically: IV regime affects collar pricing on both sides; compressed CNX IV at 27.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.88% (roughly $2.82 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 CNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNX should anchor to the underlying notional of $35.75 per share and to the trader's directional view on CNX stock.

CNX collar setup

The CNX 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 CNX at $35.75 on that close, 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 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 CNX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$35.75	long
Sell 1	Call	$38.00	$0.45
Buy 1	Put	$34.00	$0.58

CNX collar risk and reward

Net Premium / Debit: -$3,587.50
Max Profit (per contract): $212.50
Max Loss (per contract): -$187.50
Breakeven(s): $35.88
Risk / Reward Ratio: 1.133

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.

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%	-$187.50
$7.91	-77.9%	-$187.50
$15.82	-55.8%	-$187.50
$23.72	-33.6%	-$187.50
$31.62	-11.5%	-$187.50
$39.53	+10.6%	+$212.50
$47.43	+32.7%	+$212.50
$55.33	+54.8%	+$212.50
$63.24	+76.9%	+$212.50
$71.14	+99.0%	+$212.50

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 $32.93 on the downside to $38.57 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 2.65% 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 CNX at 27.50%. 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 at $35.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CNX chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is $212.50 per contract and the computed maximum loss is -$187.50 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 $35.88 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 CNX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.88%; 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 27.50% with IV rank near 2.65%, 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.