How are LDOS 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 LDOS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.00%), the computed maximum profit is $634.00 per contract and the computed maximum loss is -$366.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LDOS collar?

The breakeven for the LDOS collar priced on this page is roughly $98.66 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 LDOS market-implied 1-standard-deviation expected move is approximately 10.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LDOS implied volatility affect this collar?

LDOS ATM IV is at 37.00% with IV rank near 57.40%, 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.

LDOS Collar Strategy

LDOS (Leidos Holdings, Inc.), in the Technology sector, (Information Technology Services industry), listed on NYSE.

Leidos Holdings, Inc., along with its various subsidiaries, delivers a broad spectrum of services and innovative solutions across key markets: defense, intelligence, civil government, and health. The company operates both domestically within the United States and on an international scale. Its operations are organized into three principal divisions: Defense Solutions, Civil, and Health. The Defense Solutions segment is dedicated to providing national security systems and specialized support spanning air, land, sea, space, and cyberspace domains. Its extensive client base includes the U.S. Intelligence Community, the Department of Defense, NASA, various military branches, allied foreign governments, and other federal and commercial entities within the national security sector.

LDOS (Leidos Holdings, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $12.80B, a trailing P/E of 9.02, a beta of 0.52 versus the broader market, a 52-week range of 99.53-205.77, average daily share volume of 1.4M, a public-listing history dating back to 2006, approximately 47K full-time employees. These structural characteristics shape how LDOS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.52 indicates LDOS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 9.02 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LDOS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on LDOS?

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 LDOS snapshot

As of June 26, 2026, spot at $100.56, ATM IV 37.00%, IV rank 57.40%, expected move 10.61%. The collar on LDOS 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 17-day expiry.

Why this collar structure on LDOS specifically: IV regime affects collar pricing on both sides; mid-range LDOS IV at 37.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.61% (roughly $10.67 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LDOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on LDOS should anchor to the underlying notional of $100.56 per share and to the trader's directional view on LDOS stock.

LDOS collar setup

The LDOS 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 LDOS near $100.56, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LDOS chain at a 17-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 LDOS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$100.56	long
Sell 1	Call	$105.00	$2.68
Buy 1	Put	$95.00	$0.78

LDOS collar risk and reward

Net Premium / Debit: -$9,866.00
Max Profit (per contract): $634.00
Max Loss (per contract): -$366.00
Breakeven(s): $98.66
Risk / Reward Ratio: 1.732

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.

LDOS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on LDOS. 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%	-$366.00
$22.24	-77.9%	-$366.00
$44.48	-55.8%	-$366.00
$66.71	-33.7%	-$366.00
$88.94	-11.6%	-$366.00
$111.18	+10.6%	+$634.00
$133.41	+32.7%	+$634.00
$155.64	+54.8%	+$634.00
$177.88	+76.9%	+$634.00
$200.11	+99.0%	+$634.00

When traders use collar on LDOS

Collars on LDOS hedge an existing long LDOS 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.

LDOS thesis for this collar

The market-implied 1-standard-deviation range for LDOS extends from approximately $89.89 on the downside to $111.23 on the upside. A LDOS collar hedges an existing long LDOS 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 LDOS IV rank near 57.40% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on LDOS should anchor more to the directional view and the expected-move geometry. As a Technology name, LDOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LDOS-specific events.

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

Frequently asked questions

What is a collar on LDOS?: A collar on LDOS is the collar strategy applied to LDOS (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 LDOS stock trading near $100.56, the strikes shown on this page are snapped to the nearest listed LDOS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LDOS 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 LDOS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.00%), the computed maximum profit is $634.00 per contract and the computed maximum loss is -$366.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LDOS collar?: The breakeven for the LDOS collar priced on this page is roughly $98.66 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 LDOS market-implied 1-standard-deviation expected move is approximately 10.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on LDOS?: Collars on LDOS hedge an existing long LDOS 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 LDOS implied volatility affect this collar?: LDOS ATM IV is at 37.00% with IV rank near 57.40%, 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.