How are GEHC 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 GEHC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.61%), the computed maximum profit is $315.00 per contract and the computed maximum loss is -$285.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GEHC collar?

The breakeven for the GEHC collar priced on this page is roughly $63.85 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 GEHC market-implied 1-standard-deviation expected move is approximately 11.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GEHC implied volatility affect this collar?

GEHC ATM IV is at 38.61% with IV rank near 81.24%, 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.

GEHC Collar Strategy

GEHC (GE HealthCare Technologies Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.

GE HealthCare Technologies Inc. is a global medical technology company that creates, manufactures, and markets a diverse range of medical devices, services, and integrated digital solutions. These offerings are designed to assist in the diagnosis, treatment, and ongoing monitoring of patients. The company boasts an extensive international presence, serving markets across the United States, Canada, Europe, the Middle East, Africa, China, Taiwan, Mongolia, and Hong Kong, among other regions. Its operations are structured across four primary business divisions: Imaging, Ultrasound, Patient Care Solutions, and Pharmaceutical Diagnostics. The Imaging division specializes in advanced diagnostic imaging technologies, including systems for molecular imaging, Computed Tomography (CT) scans, Magnetic Resonance (MR) imaging, image-guided therapy, and X-ray, alongside specialized women's health products. The Ultrasound segment delivers a comprehensive suite of ultrasound solutions utilized for the screening, diagnosis, treatment, and monitoring of various diseases.

GEHC (GE HealthCare Technologies Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $29.91B, a trailing P/E of 19.92, a beta of 0.86 versus the broader market, a 52-week range of 58.75-89.77, average daily share volume of 5.0M, a public-listing history dating back to 2022, approximately 53K full-time employees. These structural characteristics shape how GEHC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.86 places GEHC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GEHC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on GEHC?

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 GEHC snapshot

As of June 30, 2026, spot at $63.90, ATM IV 38.61%, IV rank 81.24%, expected move 11.07%. The collar on GEHC 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 GEHC specifically: IV regime affects collar pricing on both sides; elevated GEHC IV at 38.61% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.07% (roughly $7.07 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 GEHC expiries trade a higher absolute premium for lower per-day decay. Position sizing on GEHC should anchor to the underlying notional of $63.90 per share and to the trader's directional view on GEHC stock.

GEHC collar setup

The GEHC 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 GEHC near $63.90, the first option leg uses a $67.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GEHC 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 GEHC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$63.90	long
Sell 1	Call	$67.00	$1.73
Buy 1	Put	$61.00	$1.68

GEHC collar risk and reward

Net Premium / Debit: -$6,385.00
Max Profit (per contract): $315.00
Max Loss (per contract): -$285.00
Breakeven(s): $63.85
Risk / Reward Ratio: 1.105

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.

GEHC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on GEHC. 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%	-$285.00
$14.14	-77.9%	-$285.00
$28.27	-55.8%	-$285.00
$42.39	-33.7%	-$285.00
$56.52	-11.5%	-$285.00
$70.65	+10.6%	+$315.00
$84.78	+32.7%	+$315.00
$98.90	+54.8%	+$315.00
$113.03	+76.9%	+$315.00
$127.16	+99.0%	+$315.00

When traders use collar on GEHC

Collars on GEHC hedge an existing long GEHC 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.

GEHC thesis for this collar

The market-implied 1-standard-deviation range for GEHC extends from approximately $56.83 on the downside to $70.97 on the upside. A GEHC collar hedges an existing long GEHC 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 GEHC IV rank near 81.24% 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 GEHC at 38.61%. As a Healthcare name, GEHC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GEHC-specific events.

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

Frequently asked questions

What is a collar on GEHC?: A collar on GEHC is the collar strategy applied to GEHC (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 GEHC stock trading near $63.90, the strikes shown on this page are snapped to the nearest listed GEHC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GEHC 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 GEHC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.61%), the computed maximum profit is $315.00 per contract and the computed maximum loss is -$285.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GEHC collar?: The breakeven for the GEHC collar priced on this page is roughly $63.85 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 GEHC market-implied 1-standard-deviation expected move is approximately 11.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on GEHC?: Collars on GEHC hedge an existing long GEHC 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 GEHC implied volatility affect this collar?: GEHC ATM IV is at 38.61% with IV rank near 81.24%, 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.