How are FCX 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 FCX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.23%), the computed maximum profit is $347.50 per contract and the computed maximum loss is -$252.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FCX collar?

The breakeven for the FCX collar priced on this page is roughly $62.53 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 FCX market-implied 1-standard-deviation expected move is approximately 14.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FCX implied volatility affect this collar?

FCX ATM IV is at 51.23% with IV rank near 68.59%, 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.

FCX Collar Strategy

FCX (Freeport-McMoRan Inc.), in the Basic Materials sector, (Copper industry), listed on NYSE.

Freeport-McMoRan Inc. engages in the mining of mineral properties in North America, South America, and Indonesia. The company primarily explores for copper, gold, molybdenum, silver, and other metals, as well as oil and gas. Its assets include the Grasberg minerals district in Indonesia; Morenci, Bagdad, Safford, Sierrita, and Miami in Arizona; Tyrone and Chino in New Mexico; and Henderson and Climax in Colorado, North America, as well as Cerro Verde in Peru and El Abra in Chile. The company also operates a portfolio of oil and gas properties primarily located in offshore California and the Gulf of Mexico. As of December 31, 2021, it operated approximately 135 wells. The company was formerly known as Freeport-McMoRan Copper & Gold Inc. and changed its name to Freeport-McMoRan Inc. in July 2014.

FCX (Freeport-McMoRan Inc.) trades in the Basic Materials sector, specifically Copper, with a market capitalization of approximately $96.55B, a trailing P/E of 35.48, a beta of 1.32 versus the broader market, a 52-week range of 35.15-70.97, average daily share volume of 17.3M, a public-listing history dating back to 1995, approximately 29K full-time employees. These structural characteristics shape how FCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates FCX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 35.48 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. FCX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on FCX?

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 FCX snapshot

As of May 15, 2026, spot at $63.17, ATM IV 51.23%, IV rank 68.59%, expected move 14.69%. The collar on FCX 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 28-day expiry.

Why this collar structure on FCX specifically: IV regime affects collar pricing on both sides; mid-range FCX IV at 51.23% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.69% (roughly $9.28 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FCX should anchor to the underlying notional of $63.17 per share and to the trader's directional view on FCX stock.

FCX collar setup

The FCX 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 FCX near $63.17, the first option leg uses a $66.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FCX chain at a 28-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 FCX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$63.17	long
Sell 1	Call	$66.00	$2.70
Buy 1	Put	$60.00	$2.06

FCX collar risk and reward

Net Premium / Debit: -$6,252.50
Max Profit (per contract): $347.50
Max Loss (per contract): -$252.50
Breakeven(s): $62.53
Risk / Reward Ratio: 1.376

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.

FCX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FCX. 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%	-$252.50
$13.98	-77.9%	-$252.50
$27.94	-55.8%	-$252.50
$41.91	-33.7%	-$252.50
$55.87	-11.5%	-$252.50
$69.84	+10.6%	+$347.50
$83.81	+32.7%	+$347.50
$97.77	+54.8%	+$347.50
$111.74	+76.9%	+$347.50
$125.71	+99.0%	+$347.50

When traders use collar on FCX

Collars on FCX hedge an existing long FCX 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.

FCX thesis for this collar

The market-implied 1-standard-deviation range for FCX extends from approximately $53.89 on the downside to $72.45 on the upside. A FCX collar hedges an existing long FCX 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 FCX IV rank near 68.59% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FCX should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, FCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FCX-specific events.

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

Frequently asked questions

What is a collar on FCX?: A collar on FCX is the collar strategy applied to FCX (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 FCX stock trading near $63.17, the strikes shown on this page are snapped to the nearest listed FCX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FCX 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 FCX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.23%), the computed maximum profit is $347.50 per contract and the computed maximum loss is -$252.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FCX collar?: The breakeven for the FCX collar priced on this page is roughly $62.53 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 FCX market-implied 1-standard-deviation expected move is approximately 14.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on FCX?: Collars on FCX hedge an existing long FCX 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 FCX implied volatility affect this collar?: FCX ATM IV is at 51.23% with IV rank near 68.59%, 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.