How are COP 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 COP collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.43%), the computed maximum profit is $655.00 per contract and the computed maximum loss is -$645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COP collar?

The breakeven for the COP collar priced on this page is roughly $126.45 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 COP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current COP implied volatility affect this collar?

COP ATM IV is at 27.43% with IV rank near 23.17%, 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.

COP Collar Strategy

COP (ConocoPhillips), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

ConocoPhillips is an energy company that engages in the global exploration, production, transportation, and marketing of various resources, including crude petroleum, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids (NGLs). Its primary operations are centered on both conventional and tight oil formations, shale gas, heavy crude, LNG developments, and oil sands projects. The company's extensive portfolio includes unconventional resources located in North America; established conventional assets spanning North America, Europe, Asia, and Australia; numerous LNG ventures; oil sands properties within Canada; and a significant inventory of potential conventional and unconventional exploration opportunities. ConocoPhillips was established in 1917 and its corporate headquarters are situated in Houston, Texas.

COP (ConocoPhillips) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $155.09B, a trailing P/E of 16.64, a beta of 0.12 versus the broader market, a 52-week range of 85.57-135.87, average daily share volume of 7.7M, a public-listing history dating back to 1981, approximately 10K full-time employees. These structural characteristics shape how COP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.12 indicates COP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. COP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on COP?

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.

COP snapshot

As of August 14, 2026, spot at $126.41, ATM IV 27.43%, IV rank 23.17%, expected move 7.87%. The collar on COP 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 28-day expiry.

Why this collar structure on COP specifically: IV regime affects collar pricing on both sides; compressed COP IV at 27.43% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.87% (roughly $9.94 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COP expiries trade a higher absolute premium for lower per-day decay. Position sizing on COP should anchor to the underlying notional of $126.41 per share and to the trader's directional view on COP stock.

COP collar setup

The COP 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 COP at $126.41 on that close, the first option leg uses a $133.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COP chain at a 28-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 COP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$126.41	long
Sell 1	Call	$133.00	$1.40
Buy 1	Put	$120.00	$1.44

COP collar risk and reward

Net Premium / Debit: -$12,645.00
Max Profit (per contract): $655.00
Max Loss (per contract): -$645.00
Breakeven(s): $126.45
Risk / Reward Ratio: 1.016

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.

COP collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on COP. 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%	-$645.00
$27.96	-77.9%	-$645.00
$55.91	-55.8%	-$645.00
$83.86	-33.7%	-$645.00
$111.81	-11.6%	-$645.00
$139.75	+10.6%	+$655.00
$167.70	+32.7%	+$655.00
$195.65	+54.8%	+$655.00
$223.60	+76.9%	+$655.00
$251.55	+99.0%	+$655.00

When traders use collar on COP

Collars on COP hedge an existing long COP 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.

COP thesis for this collar

The market-implied 1-standard-deviation range for COP extends from approximately $116.47 on the downside to $136.35 on the upside. A COP collar hedges an existing long COP 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 COP IV rank near 23.17% 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 COP at 27.43%. As a Energy name, COP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COP-specific events.

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

Frequently asked questions

What is a collar on COP?: A collar on COP is the collar strategy applied to COP (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 COP stock at $126.41 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed COP chain strike and the premiums come straight from that session's bid/ask midpoint.
How are COP 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 COP collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 27.43%), the computed maximum profit is $655.00 per contract and the computed maximum loss is -$645.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COP collar?: The breakeven for the COP collar priced on this page is roughly $126.45 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 COP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on COP?: Collars on COP hedge an existing long COP 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 COP implied volatility affect this collar?: COP ATM IV is at 27.43% with IV rank near 23.17%, 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.