How are CRDO 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 CRDO collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 97.72%), the computed maximum profit is $1,577.00 per contract and the computed maximum loss is -$1,423.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CRDO collar?

The breakeven for the CRDO collar priced on this page is roughly $259.23 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 CRDO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CRDO implied volatility affect this collar?

CRDO ATM IV is at 97.72% with IV rank near 54.18%, 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.

CRDO Collar Strategy

CRDO (Credo Technology Group Holding Ltd), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Credo Technology Group Holding Ltd (CRDO) specializes in delivering advanced high-speed connectivity solutions for both optical and electrical Ethernet applications. Its operational reach extends globally, encompassing the United States, Mexico, Mainland China, Hong Kong, and various other international regions. The company's product offerings include integrated circuits (ICs), active electrical cables (AECs), and SerDes chiplets, all developed utilizing its proprietary serializer/deserializer (SerDes) and digital signal processor (DSP) technologies. Beyond hardware, Credo also provides intellectual property (IP) solutions, particularly focusing on SerDes IP licensing. Established in 2008, the firm's corporate headquarters are situated in San Jose, California.

CRDO (Credo Technology Group Holding Ltd) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $50.01B, a trailing P/E of 104.86, a beta of 3.23 versus the broader market, a 52-week range of 86.485-308.67, average daily share volume of 7.7M, a public-listing history dating back to 2022, approximately 807 full-time employees. These structural characteristics shape how CRDO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.23 indicates CRDO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 104.86 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.

What is a collar on CRDO?

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.

CRDO snapshot

As of August 14, 2026, spot at $259.63, ATM IV 97.72%, IV rank 54.18%, expected move 28.01%. The collar on CRDO 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 CRDO specifically: IV regime affects collar pricing on both sides; mid-range CRDO IV at 97.72% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.01% (roughly $72.73 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 CRDO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRDO should anchor to the underlying notional of $259.63 per share and to the trader's directional view on CRDO stock.

CRDO collar setup

The CRDO 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 CRDO at $259.63 on that close, the first option leg uses a $275.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRDO 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 CRDO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$259.63	long
Sell 1	Call	$275.00	$21.55
Buy 1	Put	$245.00	$21.15

CRDO collar risk and reward

Net Premium / Debit: -$25,923.00
Max Profit (per contract): $1,577.00
Max Loss (per contract): -$1,423.00
Breakeven(s): $259.23
Risk / Reward Ratio: 1.108

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.

CRDO collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CRDO. 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%	-$1,423.00
$57.41	-77.9%	-$1,423.00
$114.82	-55.8%	-$1,423.00
$172.22	-33.7%	-$1,423.00
$229.63	-11.6%	-$1,423.00
$287.03	+10.6%	+$1,577.00
$344.44	+32.7%	+$1,577.00
$401.84	+54.8%	+$1,577.00
$459.25	+76.9%	+$1,577.00
$516.65	+99.0%	+$1,577.00

When traders use collar on CRDO

Collars on CRDO hedge an existing long CRDO 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.

CRDO thesis for this collar

The market-implied 1-standard-deviation range for CRDO extends from approximately $186.90 on the downside to $332.36 on the upside. A CRDO collar hedges an existing long CRDO 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 CRDO IV rank near 54.18% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CRDO should anchor more to the directional view and the expected-move geometry. As a Technology name, CRDO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRDO-specific events.

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

Frequently asked questions

What is a collar on CRDO?: A collar on CRDO is the collar strategy applied to CRDO (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 CRDO stock at $259.63 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CRDO chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CRDO 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 CRDO collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 97.72%), the computed maximum profit is $1,577.00 per contract and the computed maximum loss is -$1,423.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CRDO collar?: The breakeven for the CRDO collar priced on this page is roughly $259.23 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 CRDO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CRDO?: Collars on CRDO hedge an existing long CRDO 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 CRDO implied volatility affect this collar?: CRDO ATM IV is at 97.72% with IV rank near 54.18%, 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.