How are DVA 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 DVA collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.30%), the computed maximum profit is $1,041.50 per contract and the computed maximum loss is -$958.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DVA collar?

The breakeven for the DVA collar priced on this page is roughly $179.58 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 DVA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DVA implied volatility affect this collar?

DVA ATM IV is at 30.30% with IV rank near 11.35%, 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.

DVA Collar Strategy

DVA (DaVita Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.

DaVita Inc. specializes in delivering essential kidney dialysis treatments and comprehensive renal care to individuals grappling with chronic kidney failure. The company primarily operates an extensive network of outpatient dialysis centers, supplementing this with services provided in hospital inpatient settings and within patients' homes. Beyond direct patient treatment, DaVita manages its own diagnostic laboratories, performing routine tests vital for dialysis patients, alongside other physician-ordered laboratory analyses specifically for those with end-stage renal disease (ESRD). The firm also offers administrative and management support to various other outpatient dialysis facilities. Its broad spectrum of offerings extends to chronic disease management programs, supporting a substantial patient cohort; by year-end 2021, this included 16,000 patients enrolled in risk-based integrated care models and an additional 7,000 in other integrated care arrangements. Further specialized services encompass vascular access interventions, clinical research initiatives, direct physician support, and a complete suite of holistic kidney care solutions.

DVA (DaVita Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $11.65B, a trailing P/E of 13.87, a beta of 0.87 versus the broader market, a 52-week range of 101-247.49, average daily share volume of 883K, a public-listing history dating back to 1995, approximately 78K full-time employees. These structural characteristics shape how DVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.87 places DVA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on DVA?

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.

DVA snapshot

As of August 14, 2026, spot at $181.06, ATM IV 30.30%, IV rank 11.35%, expected move 8.69%. The collar on DVA 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 DVA specifically: IV regime affects collar pricing on both sides; compressed DVA IV at 30.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.69% (roughly $15.73 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 DVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on DVA should anchor to the underlying notional of $181.06 per share and to the trader's directional view on DVA stock.

DVA collar setup

The DVA 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 DVA at $181.06 on that close, the first option leg uses a $190.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DVA 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 DVA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$181.06	long
Sell 1	Call	$190.00	$3.80
Buy 1	Put	$170.00	$2.33

DVA collar risk and reward

Net Premium / Debit: -$17,958.50
Max Profit (per contract): $1,041.50
Max Loss (per contract): -$958.50
Breakeven(s): $179.58
Risk / Reward Ratio: 1.087

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.

DVA collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on DVA. 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%	-$958.50
$40.04	-77.9%	-$958.50
$80.07	-55.8%	-$958.50
$120.11	-33.7%	-$958.50
$160.14	-11.6%	-$958.50
$200.17	+10.6%	+$1,041.50
$240.20	+32.7%	+$1,041.50
$280.24	+54.8%	+$1,041.50
$320.27	+76.9%	+$1,041.50
$360.30	+99.0%	+$1,041.50

When traders use collar on DVA

Collars on DVA hedge an existing long DVA 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.

DVA thesis for this collar

The market-implied 1-standard-deviation range for DVA extends from approximately $165.33 on the downside to $196.79 on the upside. A DVA collar hedges an existing long DVA 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 DVA IV rank near 11.35% 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 DVA at 30.30%. As a Healthcare name, DVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DVA-specific events.

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

Frequently asked questions

What is a collar on DVA?: A collar on DVA is the collar strategy applied to DVA (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 DVA stock at $181.06 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DVA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are DVA 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 DVA collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 30.30%), the computed maximum profit is $1,041.50 per contract and the computed maximum loss is -$958.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DVA collar?: The breakeven for the DVA collar priced on this page is roughly $179.58 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 DVA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on DVA?: Collars on DVA hedge an existing long DVA 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 DVA implied volatility affect this collar?: DVA ATM IV is at 30.30% with IV rank near 11.35%, 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.