How are GVA 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 GVA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is $755.50 per contract and the computed maximum loss is -$744.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GVA collar?

The breakeven for the GVA collar priced on this page is roughly $137.45 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 GVA market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GVA implied volatility affect this collar?

GVA ATM IV is at 29.70% with IV rank near 35.46%, 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.

GVA Collar Strategy

GVA (Granite Construction Incorporated), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.

Granite Construction Incorporated operates as an infrastructure contractor and a construction materials producer in the United States. It operates through two segments, Construction and Materials segments. The Construction segment engages in the construction and rehabilitation of roads, pavement preservation, bridges, rail lines, airports, marine ports, dams, reservoirs, aqueducts, infrastructure, and site development for use by the public. It also focuses on water-related construction for municipal agencies, commercial water suppliers, industrial facilities, and energy companies. The company also constructs various complex projects, including infrastructure/site development, mining, public safety, tunnel, solar, and power projects. The Materials segment is involved in the production of aggregates and asphalt for internal use, as well as for sale to third parties.

GVA (Granite Construction Incorporated) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $6.26B, a trailing P/E of 33.68, a beta of 1.35 versus the broader market, a 52-week range of 84.45-145, average daily share volume of 617K, a public-listing history dating back to 1990, approximately 2K full-time employees. These structural characteristics shape how GVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates GVA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on GVA?

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 GVA snapshot

As of May 15, 2026, spot at $138.57, ATM IV 29.70%, IV rank 35.46%, expected move 8.51%. The collar on GVA 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 34-day expiry.

Why this collar structure on GVA specifically: IV regime affects collar pricing on both sides; mid-range GVA IV at 29.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.51% (roughly $11.80 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on GVA should anchor to the underlying notional of $138.57 per share and to the trader's directional view on GVA stock.

GVA collar setup

The GVA 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 GVA near $138.57, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GVA chain at a 34-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 GVA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$138.57	long
Sell 1	Call	$145.00	$2.58
Buy 1	Put	$130.00	$1.45

GVA collar risk and reward

Net Premium / Debit: -$13,744.50
Max Profit (per contract): $755.50
Max Loss (per contract): -$744.50
Breakeven(s): $137.45
Risk / Reward Ratio: 1.015

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.

GVA collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on GVA. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$744.50
$30.65	-77.9%	-$744.50
$61.28	-55.8%	-$744.50
$91.92	-33.7%	-$744.50
$122.56	-11.6%	-$744.50
$153.20	+10.6%	+$755.50
$183.83	+32.7%	+$755.50
$214.47	+54.8%	+$755.50
$245.11	+76.9%	+$755.50
$275.75	+99.0%	+$755.50

When traders use collar on GVA

Collars on GVA hedge an existing long GVA 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.

GVA thesis for this collar

The market-implied 1-standard-deviation range for GVA extends from approximately $126.77 on the downside to $150.37 on the upside. A GVA collar hedges an existing long GVA 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 GVA IV rank near 35.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on GVA should anchor more to the directional view and the expected-move geometry. As a Industrials name, GVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GVA-specific events.

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

Frequently asked questions

What is a collar on GVA?: A collar on GVA is the collar strategy applied to GVA (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 GVA stock trading near $138.57, the strikes shown on this page are snapped to the nearest listed GVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GVA 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 GVA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.70%), the computed maximum profit is $755.50 per contract and the computed maximum loss is -$744.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GVA collar?: The breakeven for the GVA collar priced on this page is roughly $137.45 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 GVA market-implied 1-standard-deviation expected move is approximately 8.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on GVA?: Collars on GVA hedge an existing long GVA 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 GVA implied volatility affect this collar?: GVA ATM IV is at 29.70% with IV rank near 35.46%, 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.