How are CRUS 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 CRUS collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $493.00 per contract and the computed maximum loss is -$507.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CRUS collar?

The breakeven for the CRUS collar priced on this page is roughly $120.07 at expiration, derived from the September 29, 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 CRUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CRUS implied volatility affect this collar?

CRUS ATM IV is at 36.80% with IV rank near 31.88%, 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.

CRUS Collar Strategy

CRUS (Cirrus Logic, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Cirrus Logic, Inc. (CRUS) is a semiconductor design firm that doesn't operate its own manufacturing plants. It specializes in crafting energy-efficient and highly accurate mixed-signal processing solutions for a worldwide customer base. The company's offerings for portable electronics include various audio components: integrated circuits known as codecs (which combine analog-to-digital and digital-to-analog converters), advanced "smart codecs" that feature built-in digital signal processors (DSPs), powerful amplifiers, and standalone DSPs. Their proprietary SoundClear technology, a suite of tools, software, and algorithms, further elevates the user experience by delivering features such as increased volume, high-fidelity sound reproduction, superior voice capture, hearing assistance, and active noise cancellation. These audio technologies are integrated into a wide array of devices, including smartphones, tablets, wireless headphones, laptops, augmented/virtual reality headsets, home cinema systems, in-car entertainment, and professional audio setups. Additionally, Cirrus Logic supplies high-performance mixed-signal products beyond the audio domain.

CRUS (Cirrus Logic, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $6.05B, a trailing P/E of 14.08, a beta of 1.16 versus the broader market, a 52-week range of 106.26-180.42, average daily share volume of 731K, a public-listing history dating back to 1989, approximately 2K full-time employees. These structural characteristics shape how CRUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.16 places CRUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on CRUS?

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.

CRUS snapshot

As of September 29, 2026, spot at $120.72, ATM IV 36.80%, IV rank 31.88%, expected move 10.55%. The collar on CRUS below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.

Why this collar structure on CRUS specifically: IV regime affects collar pricing on both sides; mid-range CRUS IV at 36.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.55% (roughly $12.74 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CRUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRUS should anchor to the underlying notional of $120.72 per share and to the trader's directional view on CRUS stock.

CRUS collar setup

The CRUS collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CRUS at $120.72 on that close, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRUS chain at a 17-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 CRUS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$120.72	long
Sell 1	Call	$125.00	$2.23
Buy 1	Put	$115.00	$1.58

CRUS collar risk and reward

Net Premium / Debit: -$12,007.00
Max Profit (per contract): $493.00
Max Loss (per contract): -$507.00
Breakeven(s): $120.07
Risk / Reward Ratio: 0.972

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.

CRUS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CRUS. 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%	-$507.00
$26.70	-77.9%	-$507.00
$53.39	-55.8%	-$507.00
$80.08	-33.7%	-$507.00
$106.77	-11.6%	-$507.00
$133.46	+10.6%	+$493.00
$160.15	+32.7%	+$493.00
$186.85	+54.8%	+$493.00
$213.54	+76.9%	+$493.00
$240.23	+99.0%	+$493.00

When traders use collar on CRUS

Collars on CRUS hedge an existing long CRUS 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.

CRUS thesis for this collar

The market-implied 1-standard-deviation range for CRUS extends from approximately $107.98 on the downside to $133.46 on the upside. A CRUS collar hedges an existing long CRUS 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 CRUS IV rank near 31.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CRUS should anchor more to the directional view and the expected-move geometry. As a Technology name, CRUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRUS-specific events.

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

Frequently asked questions

What is a collar on CRUS?: A collar on CRUS is the collar strategy applied to CRUS (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 CRUS stock at $120.72 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed CRUS chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CRUS 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 CRUS collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 36.80%), the computed maximum profit is $493.00 per contract and the computed maximum loss is -$507.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CRUS collar?: The breakeven for the CRUS collar priced on this page is roughly $120.07 at expiration, derived from the September 29, 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 CRUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CRUS?: Collars on CRUS hedge an existing long CRUS 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 CRUS implied volatility affect this collar?: CRUS ATM IV is at 36.80% with IV rank near 31.88%, 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.