How are EXC 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 EXC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 21.30%), the computed maximum profit is $240.50 per contract and the computed maximum loss is -$259.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EXC collar?

The breakeven for the EXC collar priced on this page is roughly $43.60 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 EXC market-implied 1-standard-deviation expected move is approximately 6.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EXC implied volatility affect this collar?

EXC ATM IV is at 21.30% with IV rank near 45.09%, 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.

EXC Collar Strategy

EXC (Exelon Corporation), in the Utilities sector, (Regulated Electric industry), listed on NASDAQ.

Exelon Corporation, a utility services holding company, engages in the energy generation, delivery, and marketing businesses in the United States and Canada. It owns nuclear, fossil, wind, hydroelectric, biomass, and solar generating facilities. The company also sells electricity to wholesale and retail customers; and sells natural gas, renewable energy, and other energy-related products and services. Additionally, it is involved in the purchase and regulated retail sale of electricity and natural gas; and transmission and distribution of electricity, and distribution of natural gas to retail customers. Further, the company offers support services, including legal, human resources, information technology, financial, supply management, accounting, engineering, customer operations, distribution and transmission planning, asset management, system operations, and power procurement services. It serves distribution utilities, municipalities, cooperatives, and financial institutions, as well as commercial, industrial, governmental, and residential customers.

EXC (Exelon Corporation) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $45.30B, a trailing P/E of 16.31, a beta of 0.42 versus the broader market, a 52-week range of 42.11-50.65, average daily share volume of 9.4M, a public-listing history dating back to 1973, approximately 20K full-time employees. These structural characteristics shape how EXC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.42 indicates EXC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EXC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on EXC?

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 EXC snapshot

As of May 15, 2026, spot at $43.47, ATM IV 21.30%, IV rank 45.09%, expected move 6.11%. The collar on EXC 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 EXC specifically: IV regime affects collar pricing on both sides; mid-range EXC IV at 21.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.11% (roughly $2.65 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 EXC expiries trade a higher absolute premium for lower per-day decay. Position sizing on EXC should anchor to the underlying notional of $43.47 per share and to the trader's directional view on EXC stock.

EXC collar setup

The EXC 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 EXC near $43.47, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EXC 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 EXC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$43.47	long
Sell 1	Call	$46.00	$0.23
Buy 1	Put	$41.00	$0.35

EXC collar risk and reward

Net Premium / Debit: -$4,359.50
Max Profit (per contract): $240.50
Max Loss (per contract): -$259.50
Breakeven(s): $43.60
Risk / Reward Ratio: 0.927

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.

EXC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on EXC. 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%	-$259.50
$9.62	-77.9%	-$259.50
$19.23	-55.8%	-$259.50
$28.84	-33.7%	-$259.50
$38.45	-11.5%	-$259.50
$48.06	+10.6%	+$240.50
$57.67	+32.7%	+$240.50
$67.28	+54.8%	+$240.50
$76.89	+76.9%	+$240.50
$86.50	+99.0%	+$240.50

When traders use collar on EXC

Collars on EXC hedge an existing long EXC 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.

EXC thesis for this collar

The market-implied 1-standard-deviation range for EXC extends from approximately $40.82 on the downside to $46.12 on the upside. A EXC collar hedges an existing long EXC 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 EXC IV rank near 45.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on EXC should anchor more to the directional view and the expected-move geometry. As a Utilities name, EXC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EXC-specific events.

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

Frequently asked questions

What is a collar on EXC?: A collar on EXC is the collar strategy applied to EXC (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 EXC stock trading near $43.47, the strikes shown on this page are snapped to the nearest listed EXC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EXC 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 EXC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 21.30%), the computed maximum profit is $240.50 per contract and the computed maximum loss is -$259.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EXC collar?: The breakeven for the EXC collar priced on this page is roughly $43.60 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 EXC market-implied 1-standard-deviation expected move is approximately 6.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on EXC?: Collars on EXC hedge an existing long EXC 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 EXC implied volatility affect this collar?: EXC ATM IV is at 21.30% with IV rank near 45.09%, 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.