How are JBTM 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 JBTM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 41.40%), the computed maximum profit is $492.50 per contract and the computed maximum loss is -$507.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a JBTM collar?

The breakeven for the JBTM collar priced on this page is roughly $120.08 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 JBTM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current JBTM implied volatility affect this collar?

JBTM ATM IV is at 41.40% with IV rank near 2.41%, 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.

JBTM Collar Strategy

JBTM (JBT Marel Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Headquartered in Chicago, Illinois, and established in 1994, JBT Marel Corporation offers sophisticated technological solutions to the global food and beverage industries, with operations spanning North America, Europe, the Middle East, Africa, the Asia Pacific region, and Latin America. The company's core offerings include a comprehensive suite of value-added processing capabilities for the food, beverage, and health markets. These solutions cover a wide range of functions, such as chilling, mixing, grinding, injecting, blending, marinating, tumbling, flattening, forming, portioning, coating, cooking, frying, freezing, extracting, pasteurizing, sterilizing, concentrating, high-pressure processing, weighing, inspecting, filling, closing, sealing, and end-of-line material handling and packaging. Beyond food processing, JBT Marel also supplies automated guided vehicle (AGV) systems, facilitating efficient material movement within manufacturing, warehouse, and medical environments. Its diverse clientele extends from baby food, bakery, confectionery, citrus, and various fruit and nut processors, to juice, pet food, pharmaceutical, plant-based beverage and protein producers, poultry, meat, and seafood operations, as well as ready meal manufacturers. Furthermore, the company serves non-food sectors like automotive, building materials, tissue, paper, packaging, hospitals, and other general manufacturing and warehousing facilities.

JBTM (JBT Marel Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $6.17B, a trailing P/E of 32.14, a beta of 0.94 versus the broader market, a 52-week range of 113.67-170.19, average daily share volume of 530K, a public-listing history dating back to 2008, approximately 12K full-time employees. These structural characteristics shape how JBTM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places JBTM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. JBTM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on JBTM?

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.

JBTM snapshot

As of August 14, 2026, spot at $120.15, ATM IV 41.40%, IV rank 2.41%, expected move 11.87%. The collar on JBTM 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 35-day expiry.

Why this collar structure on JBTM specifically: IV regime affects collar pricing on both sides; compressed JBTM IV at 41.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.87% (roughly $14.26 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated JBTM expiries trade a higher absolute premium for lower per-day decay. Position sizing on JBTM should anchor to the underlying notional of $120.15 per share and to the trader's directional view on JBTM stock.

JBTM collar setup

The JBTM 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 JBTM at $120.15 on that close, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JBTM chain at a 35-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 JBTM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$120.15	long
Sell 1	Call	$125.00	$4.18
Buy 1	Put	$115.00	$4.10

JBTM collar risk and reward

Net Premium / Debit: -$12,007.50
Max Profit (per contract): $492.50
Max Loss (per contract): -$507.50
Breakeven(s): $120.08
Risk / Reward Ratio: 0.970

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.

JBTM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on JBTM. 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%	-$507.50
$26.57	-77.9%	-$507.50
$53.14	-55.8%	-$507.50
$79.70	-33.7%	-$507.50
$106.27	-11.6%	-$507.50
$132.83	+10.6%	+$492.50
$159.40	+32.7%	+$492.50
$185.96	+54.8%	+$492.50
$212.53	+76.9%	+$492.50
$239.09	+99.0%	+$492.50

When traders use collar on JBTM

Collars on JBTM hedge an existing long JBTM 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.

JBTM thesis for this collar

The market-implied 1-standard-deviation range for JBTM extends from approximately $105.89 on the downside to $134.41 on the upside. A JBTM collar hedges an existing long JBTM 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 JBTM IV rank near 2.41% 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 JBTM at 41.40%. As a Industrials name, JBTM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JBTM-specific events.

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

Frequently asked questions

What is a collar on JBTM?: A collar on JBTM is the collar strategy applied to JBTM (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 JBTM stock at $120.15 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed JBTM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are JBTM 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 JBTM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 41.40%), the computed maximum profit is $492.50 per contract and the computed maximum loss is -$507.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a JBTM collar?: The breakeven for the JBTM collar priced on this page is roughly $120.08 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 JBTM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on JBTM?: Collars on JBTM hedge an existing long JBTM 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 JBTM implied volatility affect this collar?: JBTM ATM IV is at 41.40% with IV rank near 2.41%, 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.