How are CXW 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 CXW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 57.70%), the computed maximum profit is $194.00 per contract and the computed maximum loss is -$106.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CXW collar?

The breakeven for the CXW collar priced on this page is roughly $30.06 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CXW market-implied 1-standard-deviation expected move is approximately 16.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CXW implied volatility affect this collar?

CXW ATM IV is at 57.70% with IV rank near 59.93%, 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.

CXW Collar Strategy

CXW (CoreCivic, Inc.), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.

CoreCivic, Inc. specializes in the ownership and management of a diverse portfolio of correctional institutions, detention centers, and residential reentry facilities throughout the United States. Its operations are organized into three distinct divisions: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company offers a comprehensive suite of services to its government partners, encompassing the administration of correctional and detention services, the provision of a network of residential reentry centers designed to combat the nation's recidivism challenges, and tailored government real estate solutions. Within these facilities, CoreCivic delivers a range of rehabilitative and educational initiatives, including fundamental schooling, spiritual support, practical life skills and vocational training, and programs for substance abuse recovery. As of the close of 2021, CoreCivic's holdings included 46 correctional and detention sites, 26 residential reentry hubs, and 10 properties designated for leasing. The organization was established in 1983 and maintains its principal offices in Brentwood, Tennessee.

CXW (CoreCivic, Inc.) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $3.04B, a trailing P/E of 24.56, a beta of 0.64 versus the broader market, a 52-week range of 15.74-30.95, average daily share volume of 1.1M, a public-listing history dating back to 1997, approximately 12K full-time employees. These structural characteristics shape how CXW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates CXW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on CXW?

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.

Current CXW snapshot

As of June 29, 2026, spot at $30.11, ATM IV 57.70%, IV rank 59.93%, expected move 16.54%. The collar on CXW below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 18-day expiry.

Why this collar structure on CXW specifically: IV regime affects collar pricing on both sides; mid-range CXW IV at 57.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.54% (roughly $4.98 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CXW expiries trade a higher absolute premium for lower per-day decay. Position sizing on CXW should anchor to the underlying notional of $30.11 per share and to the trader's directional view on CXW stock.

CXW collar setup

The CXW collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CXW near $30.11, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CXW chain at a 18-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 CXW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$30.11	long
Sell 1	Call	$32.00	$1.00
Buy 1	Put	$29.00	$0.95

CXW collar risk and reward

Net Premium / Debit: -$3,006.00
Max Profit (per contract): $194.00
Max Loss (per contract): -$106.00
Breakeven(s): $30.06
Risk / Reward Ratio: 1.830

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.

CXW collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CXW. 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%	-$106.00
$6.67	-77.9%	-$106.00
$13.32	-55.8%	-$106.00
$19.98	-33.6%	-$106.00
$26.64	-11.5%	-$106.00
$33.29	+10.6%	+$194.00
$39.95	+32.7%	+$194.00
$46.60	+54.8%	+$194.00
$53.26	+76.9%	+$194.00
$59.92	+99.0%	+$194.00

When traders use collar on CXW

Collars on CXW hedge an existing long CXW 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.

CXW thesis for this collar

The market-implied 1-standard-deviation range for CXW extends from approximately $25.13 on the downside to $35.09 on the upside. A CXW collar hedges an existing long CXW 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 CXW IV rank near 59.93% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CXW should anchor more to the directional view and the expected-move geometry. As a Real Estate name, CXW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CXW-specific events.

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

Frequently asked questions

What is a collar on CXW?: A collar on CXW is the collar strategy applied to CXW (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 CXW stock trading near $30.11, the strikes shown on this page are snapped to the nearest listed CXW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CXW 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 CXW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 57.70%), the computed maximum profit is $194.00 per contract and the computed maximum loss is -$106.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CXW collar?: The breakeven for the CXW collar priced on this page is roughly $30.06 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current CXW market-implied 1-standard-deviation expected move is approximately 16.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CXW?: Collars on CXW hedge an existing long CXW 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 CXW implied volatility affect this collar?: CXW ATM IV is at 57.70% with IV rank near 59.93%, 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.