How are LHX 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 LHX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.63%), the computed maximum profit is $1,423.00 per contract and the computed maximum loss is -$1,577.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LHX collar?

The breakeven for the LHX collar priced on this page is roughly $290.77 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 LHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LHX implied volatility affect this collar?

LHX ATM IV is at 24.63% with IV rank near 33.94%, 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.

LHX Collar Strategy

LHX (L3Harris Technologies, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

L3Harris Technologies, Inc. is a prominent technology firm specializing in aerospace and defense, delivering vital, high-stakes solutions to governmental and commercial clients across the globe. Its diverse operations are organized into several key segments: The Integrated Mission Systems division is responsible for providing versatile intelligence, surveillance, and reconnaissance (ISR) platforms, alongside various communication technologies. This unit also offers comprehensive support for fleet management, as well as the development, modification, and routine maintenance of sensors for ISR and airborne operations. Furthermore, it develops and integrates specialized mission systems tailored for naval vessels and maritime operations, including sophisticated signals and multi-intelligence platforms, autonomous surface and undersea vehicles, and advanced power and ship control electronics. Cutting-edge electro-optical and infrared technologies are also part of its offerings. The Space and Airborne Systems segment is dedicated to providing sophisticated space payloads, advanced sensor technologies, and complete mission solutions for space-based operations.

LHX (L3Harris Technologies, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $54.14B, a trailing P/E of 28.99, a beta of 0.75 versus the broader market, a 52-week range of 262.68-379.23, average daily share volume of 1.4M, a public-listing history dating back to 1981, approximately 45K full-time employees. These structural characteristics shape how LHX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.75 places LHX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LHX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on LHX?

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.

LHX snapshot

As of August 14, 2026, spot at $291.47, ATM IV 24.63%, IV rank 33.94%, expected move 7.06%. The collar on LHX 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 28-day expiry.

Why this collar structure on LHX specifically: IV regime affects collar pricing on both sides; mid-range LHX IV at 24.63% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.06% (roughly $20.58 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 LHX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LHX should anchor to the underlying notional of $291.47 per share and to the trader's directional view on LHX stock.

LHX collar setup

The LHX 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 LHX at $291.47 on that close, the first option leg uses a $305.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LHX 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 LHX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$291.47	long
Sell 1	Call	$305.00	$2.95
Buy 1	Put	$275.00	$2.25

LHX collar risk and reward

Net Premium / Debit: -$29,077.00
Max Profit (per contract): $1,423.00
Max Loss (per contract): -$1,577.00
Breakeven(s): $290.77
Risk / Reward Ratio: 0.902

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.

LHX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on LHX. 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%	-$1,577.00
$64.45	-77.9%	-$1,577.00
$128.90	-55.8%	-$1,577.00
$193.34	-33.7%	-$1,577.00
$257.79	-11.6%	-$1,577.00
$322.23	+10.6%	+$1,423.00
$386.68	+32.7%	+$1,423.00
$451.12	+54.8%	+$1,423.00
$515.57	+76.9%	+$1,423.00
$580.01	+99.0%	+$1,423.00

When traders use collar on LHX

Collars on LHX hedge an existing long LHX 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.

LHX thesis for this collar

The market-implied 1-standard-deviation range for LHX extends from approximately $270.89 on the downside to $312.05 on the upside. A LHX collar hedges an existing long LHX 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 LHX IV rank near 33.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on LHX should anchor more to the directional view and the expected-move geometry. As a Industrials name, LHX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LHX-specific events.

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

Frequently asked questions

What is a collar on LHX?: A collar on LHX is the collar strategy applied to LHX (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 LHX stock at $291.47 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LHX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are LHX 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 LHX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.63%), the computed maximum profit is $1,423.00 per contract and the computed maximum loss is -$1,577.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LHX collar?: The breakeven for the LHX collar priced on this page is roughly $290.77 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 LHX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on LHX?: Collars on LHX hedge an existing long LHX 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 LHX implied volatility affect this collar?: LHX ATM IV is at 24.63% with IV rank near 33.94%, 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.