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 40.74%), the computed maximum profit is $143.50 per contract and the computed maximum loss is -$156.50 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 $25.57 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 11.68%; 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 40.74% with IV rank near 27.24%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

HOG Collar Strategy

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

Harley-Davidson, Inc. manufactures and sells motorcycles. The company operates in two segments, Motorcycles and Related Products and Financial Services. The Motorcycles and Related Products segment designs, manufactures, and sells Harley-Davidson motorcycles, including cruiser, touring, standard, sportbike, and dual models, as well as motorcycle parts, accessories, apparel, and related services. This segment sells its products to retail customers through a network of independent dealers, as well as e-commerce channels in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia-Pacific. The Financial Services segment provides wholesale financing services, such as floorplan and open account financing of motorcycles, and parts and accessories; and retail financing services, including installment lending for the purchase of new and used Harley-Davidson motorcycles, as well as point-of-sale protection products comprising motorcycle insurance, extended service contracts, and motorcycle maintenance protection. This segment also licenses third-party financial institutions that issue credit cards bearing the Harley-Davidson brand.

HOG (Harley-Davidson, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $2.69B, a trailing P/E of 12.22, a beta of 1.29 versus the broader market, a 52-week range of 17.09-31.25, average daily share volume of 3.6M, 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 1.29 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 May 15, 2026, spot at $25.44, ATM IV 40.74%, IV rank 27.24%, expected move 11.68%. 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 28-day expiry.

Why this collar structure on HOG specifically: IV regime affects collar pricing on both sides; compressed HOG IV at 40.74% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.68% (roughly $2.97 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 HOG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOG should anchor to the underlying notional of $25.44 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 $25.44, the first option leg uses a $27.00 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 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 HOG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$25.44	long
Sell 1	Call	$27.00	$0.50
Buy 1	Put	$24.00	$0.63

HOG collar risk and reward

Net Premium / Debit: -$2,556.50
Max Profit (per contract): $143.50
Max Loss (per contract): -$156.50
Breakeven(s): $25.57
Risk / Reward Ratio: 0.917

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$156.50
$5.63	-77.9%	-$156.50
$11.26	-55.7%	-$156.50
$16.88	-33.6%	-$156.50
$22.51	-11.5%	-$156.50
$28.13	+10.6%	+$143.50
$33.75	+32.7%	+$143.50
$39.38	+54.8%	+$143.50
$45.00	+76.9%	+$143.50
$50.62	+99.0%	+$143.50

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 $22.47 on the downside to $28.41 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 27.24% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on HOG at 40.74%. 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 $25.44, 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 40.74%), the computed maximum profit is $143.50 per contract and the computed maximum loss is -$156.50 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 $25.57 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 11.68%; 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 40.74% with IV rank near 27.24%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.