How are FEIM 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 FEIM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 98.70%), the computed maximum profit is $243.50 per contract and the computed maximum loss is -$256.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FEIM collar?

The breakeven for the FEIM collar priced on this page is roughly $77.57 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FEIM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FEIM implied volatility affect this collar?

FEIM ATM IV is at 98.70% with IV rank near 18.31%, 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.

FEIM Collar Strategy

FEIM (Frequency Electronics, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.

Frequency Electronics, Inc. (FEIM) is a firm dedicated to the design, development, production, and sale of highly precise timing and frequency control products and their associated components. These specialized items are primarily intended for microwave integrated circuit applications. The company's operations are divided into two main segments. The FEI-NY segment is responsible for advanced timekeeping, frequency generation, and synchronization systems, which find utility in communication satellites, ground-based cellular telecommunication stations, and other similar terrestrial installations. This segment also supplies bespoke components and systems to the United States military. Meanwhile, the FEI-Zyfer segment focuses on crafting precision navigation and timing solutions.

FEIM (Frequency Electronics, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $777.1M, a beta of 0.66 versus the broader market, a 52-week range of 25.54-80.6, average daily share volume of 246K, a public-listing history dating back to 1980, approximately 237 full-time employees. These structural characteristics shape how FEIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.66 indicates FEIM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FEIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on FEIM?

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.

FEIM snapshot

As of August 14, 2026, spot at $77.84, ATM IV 98.70%, IV rank 18.31%, expected move 28.30%. The collar on FEIM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this collar structure on FEIM specifically: IV regime affects collar pricing on both sides; compressed FEIM IV at 98.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.30% (roughly $22.03 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FEIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on FEIM should anchor to the underlying notional of $77.84 per share and to the trader's directional view on FEIM stock.

FEIM collar setup

The FEIM collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FEIM at $77.84 on that close, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FEIM chain at a 7-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 FEIM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$77.84	long
Sell 1	Call	$80.00	$2.65
Buy 1	Put	$75.00	$2.38

FEIM collar risk and reward

Net Premium / Debit: -$7,756.50
Max Profit (per contract): $243.50
Max Loss (per contract): -$256.50
Breakeven(s): $77.57
Risk / Reward Ratio: 0.949

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.

FEIM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FEIM. 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%	-$256.50
$17.22	-77.9%	-$256.50
$34.43	-55.8%	-$256.50
$51.64	-33.7%	-$256.50
$68.85	-11.6%	-$256.50
$86.06	+10.6%	+$243.50
$103.27	+32.7%	+$243.50
$120.48	+54.8%	+$243.50
$137.69	+76.9%	+$243.50
$154.90	+99.0%	+$243.50

When traders use collar on FEIM

Collars on FEIM hedge an existing long FEIM 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.

FEIM thesis for this collar

The market-implied 1-standard-deviation range for FEIM extends from approximately $55.81 on the downside to $99.87 on the upside. A FEIM collar hedges an existing long FEIM 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 FEIM IV rank near 18.31% 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 FEIM at 98.70%. As a Technology name, FEIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FEIM-specific events.

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

Frequently asked questions

What is a collar on FEIM?: A collar on FEIM is the collar strategy applied to FEIM (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 FEIM stock at $77.84 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FEIM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are FEIM 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 FEIM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 98.70%), the computed maximum profit is $243.50 per contract and the computed maximum loss is -$256.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FEIM collar?: The breakeven for the FEIM collar priced on this page is roughly $77.57 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FEIM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on FEIM?: Collars on FEIM hedge an existing long FEIM 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 FEIM implied volatility affect this collar?: FEIM ATM IV is at 98.70% with IV rank near 18.31%, 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.