How are GNRC 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 GNRC collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.23%), the computed maximum profit is $995.00 per contract and the computed maximum loss is -$1,005.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GNRC collar?

The breakeven for the GNRC collar priced on this page is roughly $220.05 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 GNRC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GNRC implied volatility affect this collar?

GNRC ATM IV is at 49.23% with IV rank near 42.68%, 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.

GNRC Collar Strategy

GNRC (Generac Holdings Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Generac Holdings Inc. specializes in the engineering, manufacturing, and global distribution of diverse power generation systems, energy storage solutions, and related electrical products. The company caters to residential users, light commercial enterprises, and industrial sectors worldwide. At its core, Generac produces vital components such as engines, alternators, batteries, advanced electronic controls, and robust steel enclosures. For homeowners, the company provides a range of automatic standby generators, from 7.5kW up to 150kW, including air-cooled models (7.5kW-26kW) and more powerful liquid-cooled units (22kW-150kW). Many of these residential systems are compatible with Mobile Link, a remote monitoring platform. Generac also offers portable generators, spanning outputs from 800W to 17.5kW, alongside an extensive catalog of outdoor power equipment like trimmers, mowers, log splitters, and pressure washers.

GNRC (Generac Holdings Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $13.06B, a trailing P/E of 50.38, a beta of 1.93 versus the broader market, a 52-week range of 134.8-296.44, average daily share volume of 950K, a public-listing history dating back to 2010, approximately 9K full-time employees. These structural characteristics shape how GNRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.93 indicates GNRC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 50.38 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. GNRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on GNRC?

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.

GNRC snapshot

As of August 14, 2026, spot at $220.75, ATM IV 49.23%, IV rank 42.68%, expected move 14.11%. The collar on GNRC 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 28-day expiry.

Why this collar structure on GNRC specifically: IV regime affects collar pricing on both sides; mid-range GNRC IV at 49.23% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.11% (roughly $31.16 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GNRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on GNRC should anchor to the underlying notional of $220.75 per share and to the trader's directional view on GNRC stock.

GNRC collar setup

The GNRC 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 GNRC at $220.75 on that close, the first option leg uses a $230.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GNRC chain at a 28-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 GNRC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$220.75	long
Sell 1	Call	$230.00	$8.00
Buy 1	Put	$210.00	$7.30

GNRC collar risk and reward

Net Premium / Debit: -$22,005.00
Max Profit (per contract): $995.00
Max Loss (per contract): -$1,005.00
Breakeven(s): $220.05
Risk / Reward Ratio: 0.990

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.

GNRC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on GNRC. 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%	-$1,005.00
$48.82	-77.9%	-$1,005.00
$97.63	-55.8%	-$1,005.00
$146.43	-33.7%	-$1,005.00
$195.24	-11.6%	-$1,005.00
$244.05	+10.6%	+$995.00
$292.86	+32.7%	+$995.00
$341.67	+54.8%	+$995.00
$390.47	+76.9%	+$995.00
$439.28	+99.0%	+$995.00

When traders use collar on GNRC

Collars on GNRC hedge an existing long GNRC 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.

GNRC thesis for this collar

The market-implied 1-standard-deviation range for GNRC extends from approximately $189.59 on the downside to $251.91 on the upside. A GNRC collar hedges an existing long GNRC 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 GNRC IV rank near 42.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on GNRC should anchor more to the directional view and the expected-move geometry. As a Industrials name, GNRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GNRC-specific events.

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

Frequently asked questions

What is a collar on GNRC?: A collar on GNRC is the collar strategy applied to GNRC (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 GNRC stock at $220.75 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GNRC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are GNRC 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 GNRC collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.23%), the computed maximum profit is $995.00 per contract and the computed maximum loss is -$1,005.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GNRC collar?: The breakeven for the GNRC collar priced on this page is roughly $220.05 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 GNRC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on GNRC?: Collars on GNRC hedge an existing long GNRC 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 GNRC implied volatility affect this collar?: GNRC ATM IV is at 49.23% with IV rank near 42.68%, 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.