How are DOV 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 DOV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is $952.00 per contract and the computed maximum loss is -$1,048.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DOV collar?

The breakeven for the DOV collar priced on this page is roughly $210.48 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 DOV market-implied 1-standard-deviation expected move is approximately 7.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DOV implied volatility affect this collar?

DOV ATM IV is at 27.50% with IV rank near 49.47%, 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.

DOV Collar Strategy

DOV (Dover Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The Engineered Products segment provides various equipment, component, software, solution, and services that are used in aftermarket vehicle service, solid waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment also offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe transport of traditional and clean fuel, and other hazardous substance along with supply chain, as well as operation of convenience retail, retail fueling, and vehicle wash establishment. The Imaging and Identification segment provides precision marking and coding; packaging intelligence; product traceability equipment; brand protection; and digital textile printing equipment, as well as related consumable, software, and service to packaged and consumer good, pharmaceutical, industrial manufacturing, fashion and apparel, and other end-market. Its Pumps and Process Solutions segment manufactures specialty pump, connector, and flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines.

DOV (Dover Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $28.90B, a trailing P/E of 26.30, a beta of 1.21 versus the broader market, a 52-week range of 158.97-237.54, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 24K full-time employees. These structural characteristics shape how DOV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.21 places DOV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. DOV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on DOV?

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 DOV snapshot

As of May 15, 2026, spot at $210.63, ATM IV 27.50%, IV rank 49.47%, expected move 7.88%. The collar on DOV 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 34-day expiry.

Why this collar structure on DOV specifically: IV regime affects collar pricing on both sides; mid-range DOV IV at 27.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.88% (roughly $16.61 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DOV expiries trade a higher absolute premium for lower per-day decay. Position sizing on DOV should anchor to the underlying notional of $210.63 per share and to the trader's directional view on DOV stock.

DOV collar setup

The DOV 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 DOV near $210.63, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DOV chain at a 34-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 DOV shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$210.63	long
Sell 1	Call	$220.00	$3.45
Buy 1	Put	$200.00	$3.30

DOV collar risk and reward

Net Premium / Debit: -$21,048.00
Max Profit (per contract): $952.00
Max Loss (per contract): -$1,048.00
Breakeven(s): $210.48
Risk / Reward Ratio: 0.908

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.

DOV collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on DOV. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$1,048.00
$46.58	-77.9%	-$1,048.00
$93.15	-55.8%	-$1,048.00
$139.72	-33.7%	-$1,048.00
$186.29	-11.6%	-$1,048.00
$232.86	+10.6%	+$952.00
$279.43	+32.7%	+$952.00
$326.00	+54.8%	+$952.00
$372.57	+76.9%	+$952.00
$419.14	+99.0%	+$952.00

When traders use collar on DOV

Collars on DOV hedge an existing long DOV 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.

DOV thesis for this collar

The market-implied 1-standard-deviation range for DOV extends from approximately $194.02 on the downside to $227.24 on the upside. A DOV collar hedges an existing long DOV 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 DOV IV rank near 49.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on DOV should anchor more to the directional view and the expected-move geometry. As a Industrials name, DOV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DOV-specific events.

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

Frequently asked questions

What is a collar on DOV?: A collar on DOV is the collar strategy applied to DOV (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 DOV stock trading near $210.63, the strikes shown on this page are snapped to the nearest listed DOV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DOV 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 DOV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 27.50%), the computed maximum profit is $952.00 per contract and the computed maximum loss is -$1,048.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DOV collar?: The breakeven for the DOV collar priced on this page is roughly $210.48 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 DOV market-implied 1-standard-deviation expected move is approximately 7.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on DOV?: Collars on DOV hedge an existing long DOV 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 DOV implied volatility affect this collar?: DOV ATM IV is at 27.50% with IV rank near 49.47%, 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.