How are FDS 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 FDS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.20%), the computed maximum profit is $1,079.00 per contract and the computed maximum loss is -$921.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FDS collar?

The breakeven for the FDS collar priced on this page is roughly $229.21 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 FDS market-implied 1-standard-deviation expected move is approximately 20.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FDS implied volatility affect this collar?

FDS ATM IV is at 70.20% with IV rank near 95.43%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

FDS Collar Strategy

FDS (FactSet Research Systems Inc.), in the Financial Services sector, (Financial - Data & Stock Exchanges industry), listed on NYSE.

FactSet Research Systems Inc. is a financial intelligence firm providing a comprehensive suite of integrated data and analytical software. The company serves the global investment community, with its operations spanning the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. FactSet delivers critical insights and information through specialized workflow solutions covering research, analytics, and trading, complemented by its content, technology platforms, and wealth management resources. Its diverse clientele includes portfolio managers, investment banks, asset managers, wealth advisors, corporate entities, and various other financial sector organizations. FactSet was established in 1978 and is headquartered in Norwalk, Connecticut.

FDS (FactSet Research Systems Inc.) trades in the Financial Services sector, specifically Financial - Data & Stock Exchanges, with a market capitalization of approximately $8.44B, a trailing P/E of 14.56, a beta of 0.71 versus the broader market, a 52-week range of 185-453.41, average daily share volume of 972K, a public-listing history dating back to 1996, approximately 13K full-time employees. These structural characteristics shape how FDS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.71 places FDS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FDS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on FDS?

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 FDS snapshot

As of June 30, 2026, spot at $229.71, ATM IV 70.20%, IV rank 95.43%, expected move 20.13%. The collar on FDS 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 FDS specifically: IV regime affects collar pricing on both sides; elevated FDS IV at 70.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.13% (roughly $46.23 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 FDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDS should anchor to the underlying notional of $229.71 per share and to the trader's directional view on FDS stock.

FDS collar setup

The FDS 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 FDS near $229.71, 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 FDS 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 FDS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$229.71	long
Sell 1	Call	$240.00	$9.80
Buy 1	Put	$220.00	$9.30

FDS collar risk and reward

Net Premium / Debit: -$22,921.00
Max Profit (per contract): $1,079.00
Max Loss (per contract): -$921.00
Breakeven(s): $229.21
Risk / Reward Ratio: 1.172

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.

FDS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FDS. 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%	-$921.00
$50.80	-77.9%	-$921.00
$101.59	-55.8%	-$921.00
$152.38	-33.7%	-$921.00
$203.17	-11.6%	-$921.00
$253.96	+10.6%	+$1,079.00
$304.74	+32.7%	+$1,079.00
$355.53	+54.8%	+$1,079.00
$406.32	+76.9%	+$1,079.00
$457.11	+99.0%	+$1,079.00

When traders use collar on FDS

Collars on FDS hedge an existing long FDS 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.

FDS thesis for this collar

The market-implied 1-standard-deviation range for FDS extends from approximately $183.48 on the downside to $275.94 on the upside. A FDS collar hedges an existing long FDS 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 FDS IV rank near 95.43% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on FDS at 70.20%. As a Financial Services name, FDS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDS-specific events.

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

Frequently asked questions

What is a collar on FDS?: A collar on FDS is the collar strategy applied to FDS (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 FDS stock trading near $229.71, the strikes shown on this page are snapped to the nearest listed FDS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FDS 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 FDS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.20%), the computed maximum profit is $1,079.00 per contract and the computed maximum loss is -$921.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FDS collar?: The breakeven for the FDS collar priced on this page is roughly $229.21 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 FDS market-implied 1-standard-deviation expected move is approximately 20.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on FDS?: Collars on FDS hedge an existing long FDS 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 FDS implied volatility affect this collar?: FDS ATM IV is at 70.20% with IV rank near 95.43%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.