How are GEO 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 GEO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.70%), the computed maximum profit is $148.00 per contract and the computed maximum loss is -$152.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GEO collar?

The breakeven for the GEO collar priced on this page is roughly $29.52 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 GEO market-implied 1-standard-deviation expected move is approximately 15.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GEO implied volatility affect this collar?

GEO ATM IV is at 52.70% with IV rank near 35.98%, 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.

GEO Collar Strategy

GEO (The GEO Group, Inc.), in the Industrials sector, (Security & Protection Services industry), listed on NYSE.

The GEO Group, Inc. is dedicated to the operation, leasing, and ownership of secure correctional centers, administrative processing hubs, and community reentry facilities situated in the United States, Australia, and South Africa. The company's operations are segmented into four main areas: U.S. Secure Services, Electronic Monitoring and Supervision Services, Reentry Services, and International Services. GEO Group provides a comprehensive suite of services. This includes offering counseling, educational programs, and treatment for alcohol and drug dependency within its various locations. It also leverages compliance technologies for monitoring services and implements empirically supported supervision and rehabilitation programs for individuals on parole, probation, or awaiting trial in a community setting.

GEO (The GEO Group, Inc.) trades in the Industrials sector, specifically Security & Protection Services, with a market capitalization of approximately $4.06B, a trailing P/E of 14.74, a beta of 0.83 versus the broader market, a 52-week range of 12.51-30.58, average daily share volume of 2.0M, a public-listing history dating back to 1994, approximately 17K full-time employees. These structural characteristics shape how GEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.83 places GEO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on GEO?

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 GEO snapshot

As of June 30, 2026, spot at $29.82, ATM IV 52.70%, IV rank 35.98%, expected move 15.11%. The collar on GEO 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 GEO specifically: IV regime affects collar pricing on both sides; mid-range GEO IV at 52.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.11% (roughly $4.51 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 GEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on GEO should anchor to the underlying notional of $29.82 per share and to the trader's directional view on GEO stock.

GEO collar setup

The GEO 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 GEO near $29.82, 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 GEO 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 GEO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$29.82	long
Sell 1	Call	$31.00	$0.93
Buy 1	Put	$28.00	$0.63

GEO collar risk and reward

Net Premium / Debit: -$2,952.00
Max Profit (per contract): $148.00
Max Loss (per contract): -$152.00
Breakeven(s): $29.52
Risk / Reward Ratio: 0.974

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.

GEO collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on GEO. 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%	-$152.00
$6.60	-77.9%	-$152.00
$13.19	-55.8%	-$152.00
$19.79	-33.6%	-$152.00
$26.38	-11.5%	-$152.00
$32.97	+10.6%	+$148.00
$39.56	+32.7%	+$148.00
$46.16	+54.8%	+$148.00
$52.75	+76.9%	+$148.00
$59.34	+99.0%	+$148.00

When traders use collar on GEO

Collars on GEO hedge an existing long GEO 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.

GEO thesis for this collar

The market-implied 1-standard-deviation range for GEO extends from approximately $25.31 on the downside to $34.33 on the upside. A GEO collar hedges an existing long GEO 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 GEO IV rank near 35.98% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on GEO should anchor more to the directional view and the expected-move geometry. As a Industrials name, GEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GEO-specific events.

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

Frequently asked questions

What is a collar on GEO?: A collar on GEO is the collar strategy applied to GEO (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 GEO stock trading near $29.82, the strikes shown on this page are snapped to the nearest listed GEO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GEO 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 GEO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.70%), the computed maximum profit is $148.00 per contract and the computed maximum loss is -$152.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GEO collar?: The breakeven for the GEO collar priced on this page is roughly $29.52 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 GEO market-implied 1-standard-deviation expected move is approximately 15.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on GEO?: Collars on GEO hedge an existing long GEO 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 GEO implied volatility affect this collar?: GEO ATM IV is at 52.70% with IV rank near 35.98%, 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.