How are LNN 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 LNN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.40%), the computed maximum profit is $739.50 per contract and the computed maximum loss is -$760.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LNN collar?

The breakeven for the LNN collar priced on this page is roughly $122.61 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 LNN market-implied 1-standard-deviation expected move is approximately 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LNN implied volatility affect this collar?

LNN ATM IV is at 52.40% with IV rank near 10.09%, 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.

LNN Collar Strategy

LNN (Lindsay Corporation), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.

Lindsay Corporation is an international enterprise specializing in comprehensive solutions for water management and road infrastructure. The company's operations are structured into two main divisions. The Irrigation segment develops and distributes a wide array of irrigation technologies. This encompasses center pivot and lateral move irrigation systems under the Zimmatic brand, Perrot and Greenfield hose reel travelers, and the GrowSmart line of chemical injection systems, variable rate irrigation tools, flow meters, weather stations, soil moisture sensors, and advanced remote monitoring and control systems. This division also provides essential repair and replacement parts, along with sophisticated technological solutions including global positioning system guidance, wireless irrigation management, scheduling applications, and smartphone integration. Furthermore, it offers industrial Internet of Things (IoT) technology solutions, data acquisition and management systems, and bespoke electronic equipment for various applications, all under the Elecsys brand.

LNN (Lindsay Corporation) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $1.31B, a trailing P/E of 22.39, a beta of 0.71 versus the broader market, a 52-week range of 97.27-149.56, average daily share volume of 195K, a public-listing history dating back to 1988, approximately 1K full-time employees. These structural characteristics shape how LNN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.71 places LNN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. LNN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on LNN?

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 LNN snapshot

As of June 30, 2026, spot at $123.23, ATM IV 52.40%, IV rank 10.09%, expected move 15.02%. The collar on LNN 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 LNN specifically: IV regime affects collar pricing on both sides; compressed LNN IV at 52.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.02% (roughly $18.51 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 LNN expiries trade a higher absolute premium for lower per-day decay. Position sizing on LNN should anchor to the underlying notional of $123.23 per share and to the trader's directional view on LNN stock.

LNN collar setup

The LNN 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 LNN near $123.23, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LNN 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 LNN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$123.23	long
Sell 1	Call	$130.00	$2.83
Buy 1	Put	$115.00	$2.20

LNN collar risk and reward

Net Premium / Debit: -$12,260.50
Max Profit (per contract): $739.50
Max Loss (per contract): -$760.50
Breakeven(s): $122.61
Risk / Reward Ratio: 0.972

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.

LNN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on LNN. 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%	-$760.50
$27.26	-77.9%	-$760.50
$54.50	-55.8%	-$760.50
$81.75	-33.7%	-$760.50
$108.99	-11.6%	-$760.50
$136.24	+10.6%	+$739.50
$163.48	+32.7%	+$739.50
$190.73	+54.8%	+$739.50
$217.98	+76.9%	+$739.50
$245.22	+99.0%	+$739.50

When traders use collar on LNN

Collars on LNN hedge an existing long LNN 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.

LNN thesis for this collar

The market-implied 1-standard-deviation range for LNN extends from approximately $104.72 on the downside to $141.74 on the upside. A LNN collar hedges an existing long LNN 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 LNN IV rank near 10.09% 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 LNN at 52.40%. As a Industrials name, LNN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LNN-specific events.

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

Frequently asked questions

What is a collar on LNN?: A collar on LNN is the collar strategy applied to LNN (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 LNN stock trading near $123.23, the strikes shown on this page are snapped to the nearest listed LNN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LNN 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 LNN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.40%), the computed maximum profit is $739.50 per contract and the computed maximum loss is -$760.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LNN collar?: The breakeven for the LNN collar priced on this page is roughly $122.61 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 LNN market-implied 1-standard-deviation expected move is approximately 15.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on LNN?: Collars on LNN hedge an existing long LNN 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 LNN implied volatility affect this collar?: LNN ATM IV is at 52.40% with IV rank near 10.09%, 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.