How are ENB 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 ENB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 18.50%), the computed maximum profit is $220.50 per contract and the computed maximum loss is -$279.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ENB collar?

The breakeven for the ENB collar priced on this page is roughly $55.30 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 ENB market-implied 1-standard-deviation expected move is approximately 5.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ENB implied volatility affect this collar?

ENB ATM IV is at 18.50% with IV rank near 17.21%, 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.

ENB Collar Strategy

ENB (Enbridge Inc.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.

Enbridge Inc. operates as an energy infrastructure company. The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream, Gas Distribution and Storage, Renewable Power Generation, and Energy Services. The Liquids Pipelines segment operates pipelines and related terminals to transport various grades of crude oil and other liquid hydrocarbons in Canada and the United States. The Gas Transmission and Midstream segment invests in natural gas pipelines, and gathering and processing facilities in Canada and the United States. The Gas Distribution and Storage segment is involved in natural gas utility operations serving residential, commercial, and industrial customers in Ontario, as well as natural gas distribution and energy transportation activities in Quebec. The Renewable Power Generation segment operates power generating assets, such as wind, solar, geothermal, and waste heat recovery facilities; and transmission assets in North America and Europe.

ENB (Enbridge Inc.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $120.52B, a trailing P/E of 21.84, a beta of 0.79 versus the broader market, a 52-week range of 43.59-55.49, average daily share volume of 4.6M, a public-listing history dating back to 1984, approximately 15K full-time employees. These structural characteristics shape how ENB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.79 places ENB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ENB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on ENB?

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 ENB snapshot

As of May 15, 2026, spot at $55.17, ATM IV 18.50%, IV rank 17.21%, expected move 5.30%. The collar on ENB 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 245-day expiry.

Why this collar structure on ENB specifically: IV regime affects collar pricing on both sides; compressed ENB IV at 18.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.30% (roughly $2.93 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ENB expiries trade a higher absolute premium for lower per-day decay. Position sizing on ENB should anchor to the underlying notional of $55.17 per share and to the trader's directional view on ENB stock.

ENB collar setup

The ENB 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 ENB near $55.17, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ENB chain at a 245-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 ENB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$55.17	long
Sell 1	Call	$57.50	$2.40
Buy 1	Put	$52.50	$2.53

ENB collar risk and reward

Net Premium / Debit: -$5,529.50
Max Profit (per contract): $220.50
Max Loss (per contract): -$279.50
Breakeven(s): $55.30
Risk / Reward Ratio: 0.789

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.

ENB collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ENB. 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%	-$279.50
$12.21	-77.9%	-$279.50
$24.40	-55.8%	-$279.50
$36.60	-33.7%	-$279.50
$48.80	-11.5%	-$279.50
$61.00	+10.6%	+$220.50
$73.19	+32.7%	+$220.50
$85.39	+54.8%	+$220.50
$97.59	+76.9%	+$220.50
$109.79	+99.0%	+$220.50

When traders use collar on ENB

Collars on ENB hedge an existing long ENB 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.

ENB thesis for this collar

The market-implied 1-standard-deviation range for ENB extends from approximately $52.24 on the downside to $58.10 on the upside. A ENB collar hedges an existing long ENB 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 ENB IV rank near 17.21% 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 ENB at 18.50%. As a Energy name, ENB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ENB-specific events.

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

Frequently asked questions

What is a collar on ENB?: A collar on ENB is the collar strategy applied to ENB (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 ENB stock trading near $55.17, the strikes shown on this page are snapped to the nearest listed ENB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ENB 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 ENB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 18.50%), the computed maximum profit is $220.50 per contract and the computed maximum loss is -$279.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ENB collar?: The breakeven for the ENB collar priced on this page is roughly $55.30 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 ENB market-implied 1-standard-deviation expected move is approximately 5.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ENB?: Collars on ENB hedge an existing long ENB 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 ENB implied volatility affect this collar?: ENB ATM IV is at 18.50% with IV rank near 17.21%, 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.