How are FLY 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 FLY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 110.78%), the computed maximum profit is $170.50 per contract and the computed maximum loss is -$129.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FLY collar?

The breakeven for the FLY collar priced on this page is roughly $29.29 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 FLY market-implied 1-standard-deviation expected move is approximately 31.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FLY implied volatility affect this collar?

FLY ATM IV is at 110.78% with IV rank near 75.48%, 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.

FLY Collar Strategy

FLY (Firefly Aerospace Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.

Firefly Aerospace Inc. is an innovative aerospace and defense technology firm that provides advanced mission capabilities for a wide range of clients, including national security initiatives, governmental bodies, and commercial ventures. The company specializes in integrated technologies for space launches and in-orbit operations, designed to facilitate efficient access, transit, and ongoing activities within the space environment. Its suite of key offerings includes: Alpha, a rapid-response small launch vehicle; Eclipse, a robust medium-lift launch system; Blue Ghost, which provides lunar payload delivery and surface operations; Elytra, offering in-space maneuverability and satellite servicing; and Ocula, a dedicated lunar imaging service. Established in 2017, the company is based in Cedar Park, Texas.

FLY (Firefly Aerospace Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $4.19B, a beta of -0.31 versus the broader market, a 52-week range of 16-73.8, average daily share volume of 7.9M, a public-listing history dating back to 2025, approximately 780 full-time employees. These structural characteristics shape how FLY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.31 indicates FLY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on FLY?

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 FLY snapshot

As of June 30, 2026, spot at $29.57, ATM IV 110.78%, IV rank 75.48%, expected move 31.76%. The collar on FLY 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 31-day expiry.

Why this collar structure on FLY specifically: IV regime affects collar pricing on both sides; elevated FLY IV at 110.78% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.76% (roughly $9.39 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLY expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLY should anchor to the underlying notional of $29.57 per share and to the trader's directional view on FLY stock.

FLY collar setup

The FLY 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 FLY near $29.57, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLY chain at a 31-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 FLY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$29.57	long
Sell 1	Call	$31.00	$3.25
Buy 1	Put	$28.00	$2.98

FLY collar risk and reward

Net Premium / Debit: -$2,929.50
Max Profit (per contract): $170.50
Max Loss (per contract): -$129.50
Breakeven(s): $29.29
Risk / Reward Ratio: 1.317

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.

FLY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FLY. 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%	-$129.50
$6.55	-77.9%	-$129.50
$13.08	-55.8%	-$129.50
$19.62	-33.6%	-$129.50
$26.16	-11.5%	-$129.50
$32.69	+10.6%	+$170.50
$39.23	+32.7%	+$170.50
$45.77	+54.8%	+$170.50
$52.31	+76.9%	+$170.50
$58.84	+99.0%	+$170.50

When traders use collar on FLY

Collars on FLY hedge an existing long FLY 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.

FLY thesis for this collar

The market-implied 1-standard-deviation range for FLY extends from approximately $20.18 on the downside to $38.96 on the upside. A FLY collar hedges an existing long FLY 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 FLY IV rank near 75.48% 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 FLY at 110.78%. As a Industrials name, FLY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLY-specific events.

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

Frequently asked questions

What is a collar on FLY?: A collar on FLY is the collar strategy applied to FLY (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 FLY stock trading near $29.57, the strikes shown on this page are snapped to the nearest listed FLY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FLY 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 FLY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 110.78%), the computed maximum profit is $170.50 per contract and the computed maximum loss is -$129.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FLY collar?: The breakeven for the FLY collar priced on this page is roughly $29.29 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 FLY market-implied 1-standard-deviation expected move is approximately 31.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on FLY?: Collars on FLY hedge an existing long FLY 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 FLY implied volatility affect this collar?: FLY ATM IV is at 110.78% with IV rank near 75.48%, 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.