How are EXP 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 EXP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.30%), the computed maximum profit is $1,539.00 per contract and the computed maximum loss is -$1,461.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a EXP collar?

The breakeven for the EXP collar priced on this page is roughly $224.61 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 EXP market-implied 1-standard-deviation expected move is approximately 10.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current EXP implied volatility affect this collar?

EXP ATM IV is at 37.30% with IV rank near 61.72%, 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.

EXP Collar Strategy

EXP (Eagle Materials Inc.), in the Basic Materials sector, (Construction Materials industry), listed on NYSE.

Eagle Materials Inc., operating through its subsidiaries across the United States, stands as a key producer and supplier of both heavy construction and light building materials. The company's diverse operations are organized into distinct segments: Cement; Concrete and Aggregates; Gypsum Wallboard; and Recycled Paperboard. Its core activities involve the mining of limestone for the comprehensive manufacture, distribution, and sale of Portland cement, alongside the grinding and distribution of slag. Additionally, Eagle Materials extracts gypsum to produce and market gypsum wallboard, an essential product utilized for finishing interior walls and ceilings in residential, commercial, and industrial structures. The firm also engages in the production and sale of recycled paperboard, catering to the gypsum wallboard industry and other paperboard converters, while also providing containerboard and lightweight packaging grades. Furthermore, its product portfolio includes ready-mix concrete, complemented by the mining, extraction, and sale of various aggregates such as crushed stone, sand, and gravel.

EXP (Eagle Materials Inc.) trades in the Basic Materials sector, specifically Construction Materials, with a market capitalization of approximately $7.22B, a trailing P/E of 17.27, a beta of 1.38 versus the broader market, a 52-week range of 171.99-245.53, average daily share volume of 417K, a public-listing history dating back to 1994, approximately 3K full-time employees. These structural characteristics shape how EXP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.38 indicates EXP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EXP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on EXP?

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 EXP snapshot

As of June 30, 2026, spot at $224.71, ATM IV 37.30%, IV rank 61.72%, expected move 10.69%. The collar on EXP 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 17-day expiry.

Why this collar structure on EXP specifically: IV regime affects collar pricing on both sides; mid-range EXP IV at 37.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.69% (roughly $24.03 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EXP expiries trade a higher absolute premium for lower per-day decay. Position sizing on EXP should anchor to the underlying notional of $224.71 per share and to the trader's directional view on EXP stock.

EXP collar setup

The EXP 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 EXP near $224.71, the first option leg uses a $240.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EXP chain at a 17-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 EXP shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$224.71	long
Sell 1	Call	$240.00	$2.25
Buy 1	Put	$210.00	$2.15

EXP collar risk and reward

Net Premium / Debit: -$22,461.00
Max Profit (per contract): $1,539.00
Max Loss (per contract): -$1,461.00
Breakeven(s): $224.61
Risk / Reward Ratio: 1.053

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.

EXP collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on EXP. 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%	-$1,461.00
$49.69	-77.9%	-$1,461.00
$99.38	-55.8%	-$1,461.00
$149.06	-33.7%	-$1,461.00
$198.74	-11.6%	-$1,461.00
$248.43	+10.6%	+$1,539.00
$298.11	+32.7%	+$1,539.00
$347.79	+54.8%	+$1,539.00
$397.48	+76.9%	+$1,539.00
$447.16	+99.0%	+$1,539.00

When traders use collar on EXP

Collars on EXP hedge an existing long EXP 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.

EXP thesis for this collar

The market-implied 1-standard-deviation range for EXP extends from approximately $200.68 on the downside to $248.74 on the upside. A EXP collar hedges an existing long EXP 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 EXP IV rank near 61.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on EXP should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, EXP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EXP-specific events.

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

Frequently asked questions

What is a collar on EXP?: A collar on EXP is the collar strategy applied to EXP (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 EXP stock trading near $224.71, the strikes shown on this page are snapped to the nearest listed EXP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are EXP 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 EXP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.30%), the computed maximum profit is $1,539.00 per contract and the computed maximum loss is -$1,461.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a EXP collar?: The breakeven for the EXP collar priced on this page is roughly $224.61 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 EXP market-implied 1-standard-deviation expected move is approximately 10.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on EXP?: Collars on EXP hedge an existing long EXP 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 EXP implied volatility affect this collar?: EXP ATM IV is at 37.30% with IV rank near 61.72%, 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.