How are CPB 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 CPB collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.30%), the computed maximum profit is $136.50 per contract and the computed maximum loss is -$113.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CPB collar?

The breakeven for the CPB collar priced on this page is roughly $23.13 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 CPB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CPB implied volatility affect this collar?

CPB ATM IV is at 34.30% with IV rank near 46.68%, 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.

CPB Collar Strategy

CPB (Campbell Soup Company), in the Consumer Defensive sector, (Packaged Foods industry), listed on NASDAQ.

Campbell Soup Company (CPB) is a leading international producer and marketer of a wide variety of food and beverage products. The enterprise conducts its business through two main operational divisions: Meals & Beverages and Snacks. The Meals & Beverages segment serves both retail and food service industries throughout the United States and Canada. Its extensive product range includes classic Campbell's condensed and ready-to-enjoy soups; Swanson brand broths and stocks; Pacific Foods' line of broths, soups, and non-dairy beverages; Prego pasta sauces; Pace brand Mexican sauces; Campbell's gravies, pasta dishes, beans, and dinner sauces; Swanson canned poultry; Plum organic baby food and snacks; V8 juices and drinks; and Campbell's tomato juice. The Snacks division primarily targets the retail sector, with a significant presence in Latin America. This segment offers a diverse array of treats, such as Pepperidge Farm's selection of cookies, crackers, fresh bakery items, and frozen goods, including Milano cookies and Goldfish crackers.

CPB (Campbell Soup Company) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $6.74B, a trailing P/E of 11.08, a beta of -0.00 versus the broader market, a 52-week range of 19.56-34.17, average daily share volume of 8.3M, a public-listing history dating back to 1954, approximately 14K full-time employees. These structural characteristics shape how CPB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.00 indicates CPB 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 11.08 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CPB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on CPB?

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.

CPB snapshot

As of August 14, 2026, spot at $23.16, ATM IV 34.30%, IV rank 46.68%, expected move 9.83%. The collar on CPB 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 CPB specifically: IV regime affects collar pricing on both sides; mid-range CPB IV at 34.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.83% (roughly $2.28 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 CPB expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPB should anchor to the underlying notional of $23.16 per share and to the trader's directional view on CPB stock.

CPB collar setup

The CPB 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 CPB at $23.16 on that close, the first option leg uses a $24.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPB 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 CPB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$23.16	long
Sell 1	Call	$24.50	$0.43
Buy 1	Put	$22.00	$0.40

CPB collar risk and reward

Net Premium / Debit: -$2,313.50
Max Profit (per contract): $136.50
Max Loss (per contract): -$113.50
Breakeven(s): $23.13
Risk / Reward Ratio: 1.203

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.

CPB collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CPB. 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%	-$113.50
$5.13	-77.9%	-$113.50
$10.25	-55.7%	-$113.50
$15.37	-33.6%	-$113.50
$20.49	-11.5%	-$113.50
$25.61	+10.6%	+$136.50
$30.73	+32.7%	+$136.50
$35.85	+54.8%	+$136.50
$40.97	+76.9%	+$136.50
$46.09	+99.0%	+$136.50

When traders use collar on CPB

Collars on CPB hedge an existing long CPB 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.

CPB thesis for this collar

The market-implied 1-standard-deviation range for CPB extends from approximately $20.88 on the downside to $25.44 on the upside. A CPB collar hedges an existing long CPB 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 CPB IV rank near 46.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CPB should anchor more to the directional view and the expected-move geometry. As a Consumer Defensive name, CPB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPB-specific events.

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

Frequently asked questions

What is a collar on CPB?: A collar on CPB is the collar strategy applied to CPB (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 CPB stock at $23.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CPB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CPB 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 CPB collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.30%), the computed maximum profit is $136.50 per contract and the computed maximum loss is -$113.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CPB collar?: The breakeven for the CPB collar priced on this page is roughly $23.13 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 CPB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CPB?: Collars on CPB hedge an existing long CPB 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 CPB implied volatility affect this collar?: CPB ATM IV is at 34.30% with IV rank near 46.68%, 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.