How are LMB 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 LMB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), the computed maximum profit is $314.00 per contract and the computed maximum loss is -$186.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LMB collar?

The breakeven for the LMB collar priced on this page is roughly $76.86 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 LMB market-implied 1-standard-deviation expected move is approximately 19.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LMB implied volatility affect this collar?

LMB ATM IV is at 67.40% with IV rank near 43.09%, 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.

LMB Collar Strategy

LMB (Limbach Holdings, Inc.), in the Industrials sector, (Construction Materials industry), listed on NASDAQ.

Limbach Holdings, Inc. operates as a building systems solution company in the United States. The company operates through two segments, Owner Direct Relationships and General Contractor Relationships. It engages in the construction or renovation projects that involve primarily include mechanical, electrical, plumbing, and controls services (MEPC). It also provides professional and consultative services; inspection, troubleshooting, repair, and services; system and/or facility assessments; turnkey rental equipment solutions; MEPC infrastructure solutions; and customized solutions. The company serves research, acute care, and inpatient hospitals; public and private colleges, universities, research centers; entertainment facilities, and amusement rides and parks; data centers; automotive, energy and general manufacturing plants; and life sciences, including organizations and companies, whose work is centered around research and development focused on living things. Limbach Holdings, Inc. was founded in 1901 and is headquartered in Tampa, Florida.

LMB (Limbach Holdings, Inc.) trades in the Industrials sector, specifically Construction Materials, with a market capitalization of approximately $968.7M, a trailing P/E of 28.76, a beta of 1.42 versus the broader market, a 52-week range of 65.08-154.05, average daily share volume of 290K, a public-listing history dating back to 2014, approximately 2K full-time employees. These structural characteristics shape how LMB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.42 indicates LMB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on LMB?

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 LMB snapshot

As of June 30, 2026, spot at $77.21, ATM IV 67.40%, IV rank 43.09%, expected move 19.32%. The collar on LMB 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 LMB specifically: IV regime affects collar pricing on both sides; mid-range LMB IV at 67.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.32% (roughly $14.92 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 LMB expiries trade a higher absolute premium for lower per-day decay. Position sizing on LMB should anchor to the underlying notional of $77.21 per share and to the trader's directional view on LMB stock.

LMB collar setup

The LMB 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 LMB near $77.21, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LMB 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 LMB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$77.21	long
Sell 1	Call	$80.00	$3.70
Buy 1	Put	$75.00	$3.35

LMB collar risk and reward

Net Premium / Debit: -$7,686.00
Max Profit (per contract): $314.00
Max Loss (per contract): -$186.00
Breakeven(s): $76.86
Risk / Reward Ratio: 1.688

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.

LMB collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on LMB. 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%	-$186.00
$17.08	-77.9%	-$186.00
$34.15	-55.8%	-$186.00
$51.22	-33.7%	-$186.00
$68.29	-11.6%	-$186.00
$85.36	+10.6%	+$314.00
$102.43	+32.7%	+$314.00
$119.50	+54.8%	+$314.00
$136.57	+76.9%	+$314.00
$153.64	+99.0%	+$314.00

When traders use collar on LMB

Collars on LMB hedge an existing long LMB 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.

LMB thesis for this collar

The market-implied 1-standard-deviation range for LMB extends from approximately $62.29 on the downside to $92.13 on the upside. A LMB collar hedges an existing long LMB 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 LMB IV rank near 43.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on LMB should anchor more to the directional view and the expected-move geometry. As a Industrials name, LMB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LMB-specific events.

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

Frequently asked questions

What is a collar on LMB?: A collar on LMB is the collar strategy applied to LMB (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 LMB stock trading near $77.21, the strikes shown on this page are snapped to the nearest listed LMB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LMB 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 LMB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 67.40%), the computed maximum profit is $314.00 per contract and the computed maximum loss is -$186.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LMB collar?: The breakeven for the LMB collar priced on this page is roughly $76.86 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 LMB market-implied 1-standard-deviation expected move is approximately 19.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on LMB?: Collars on LMB hedge an existing long LMB 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 LMB implied volatility affect this collar?: LMB ATM IV is at 67.40% with IV rank near 43.09%, 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.