How are HOG 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 HOG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.85%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HOG collar?

The breakeven for the HOG collar priced on this page is roughly $24.40 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 HOG market-implied 1-standard-deviation expected move is approximately 14.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HOG implied volatility affect this collar?

HOG ATM IV is at 48.85% with IV rank near 61.43%, 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.

HOG Collar Strategy

HOG (Harley-Davidson, Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Harley-Davidson, Inc., publicly traded under the symbol HOG, is fundamentally a manufacturer and seller of motorcycles. The company's operations are divided into two primary divisions: Motorcycle Products and Related Offerings, and Financial Services. The Motorcycle Products and Related Offerings segment focuses on the design, production, and worldwide distribution of Harley-Davidson motorcycles, encompassing various styles such as cruiser, touring, standard, sportbike, and dual models. This division also supplies motorcycle components, aftermarket accessories, branded apparel, and associated services. Its products are distributed to retail customers through a broad network of independent dealers and via e-commerce channels throughout the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific region. The Financial Services segment provides extensive financing solutions.

HOG (Harley-Davidson, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $2.65B, a trailing P/E of 12.03, a beta of 1.28 versus the broader market, a 52-week range of 17.09-31.25, average daily share volume of 2.9M, a public-listing history dating back to 1986, approximately 6K full-time employees. These structural characteristics shape how HOG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.28 places HOG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HOG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on HOG?

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 HOG snapshot

As of June 30, 2026, spot at $24.45, ATM IV 48.85%, IV rank 61.43%, expected move 14.01%. The collar on HOG 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 HOG specifically: IV regime affects collar pricing on both sides; mid-range HOG IV at 48.85% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.01% (roughly $3.42 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 HOG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOG should anchor to the underlying notional of $24.45 per share and to the trader's directional view on HOG stock.

HOG collar setup

The HOG 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 HOG near $24.45, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HOG 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 HOG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$24.45	long
Sell 1	Call	$26.00	$0.83
Buy 1	Put	$23.00	$0.78

HOG collar risk and reward

Net Premium / Debit: -$2,440.00
Max Profit (per contract): $160.00
Max Loss (per contract): -$140.00
Breakeven(s): $24.40
Risk / Reward Ratio: 1.143

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.

HOG collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HOG. 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%	-$140.00
$5.41	-77.9%	-$140.00
$10.82	-55.7%	-$140.00
$16.22	-33.6%	-$140.00
$21.63	-11.5%	-$140.00
$27.03	+10.6%	+$160.00
$32.44	+32.7%	+$160.00
$37.84	+54.8%	+$160.00
$43.25	+76.9%	+$160.00
$48.65	+99.0%	+$160.00

When traders use collar on HOG

Collars on HOG hedge an existing long HOG 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.

HOG thesis for this collar

The market-implied 1-standard-deviation range for HOG extends from approximately $21.03 on the downside to $27.87 on the upside. A HOG collar hedges an existing long HOG 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 HOG IV rank near 61.43% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HOG should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, HOG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HOG-specific events.

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

Frequently asked questions

What is a collar on HOG?: A collar on HOG is the collar strategy applied to HOG (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 HOG stock trading near $24.45, the strikes shown on this page are snapped to the nearest listed HOG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HOG 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 HOG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.85%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HOG collar?: The breakeven for the HOG collar priced on this page is roughly $24.40 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 HOG market-implied 1-standard-deviation expected move is approximately 14.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HOG?: Collars on HOG hedge an existing long HOG 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 HOG implied volatility affect this collar?: HOG ATM IV is at 48.85% with IV rank near 61.43%, 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.