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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $527.50 per contract and the computed maximum loss is -$472.50 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 $119.73 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 CRUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.63%; 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 33.60% with IV rank near 9.09%, 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.

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 $6.15B, a trailing P/E of 14.31, a beta of 1.18 versus the broader market, a 52-week range of 107.39-180.42, average daily share volume of 656K, 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 1.18 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 August 14, 2026, spot at $120.90, ATM IV 33.60%, IV rank 9.09%, expected move 9.63%. The collar on CRUS 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 CRUS specifically: IV regime affects collar pricing on both sides; compressed CRUS IV at 33.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.63% (roughly $11.65 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 CRUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRUS should anchor to the underlying notional of $120.90 per share and to the trader's directional view on CRUS stock.

CRUS collar setup

The CRUS 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 CRUS at $120.90 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 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 CRUS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$120.90	long
Sell 1	Call	$125.00	$3.45
Buy 1	Put	$115.00	$2.28

CRUS collar risk and reward

Net Premium / Debit: -$11,972.50
Max Profit (per contract): $527.50
Max Loss (per contract): -$472.50
Breakeven(s): $119.73
Risk / Reward Ratio: 1.116

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%	-$472.50
$26.74	-77.9%	-$472.50
$53.47	-55.8%	-$472.50
$80.20	-33.7%	-$472.50
$106.93	-11.6%	-$472.50
$133.66	+10.6%	+$527.50
$160.39	+32.7%	+$527.50
$187.12	+54.8%	+$527.50
$213.85	+76.9%	+$527.50
$240.58	+99.0%	+$527.50

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 $109.25 on the downside to $132.55 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 9.09% 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 CRUS at 33.60%. 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 $120.90 on the August 14, 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $527.50 per contract and the computed maximum loss is -$472.50 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 $119.73 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 CRUS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.63%; 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 33.60% with IV rank near 9.09%, 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.