How are LRCX 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 LRCX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is $1,953.00 per contract and the computed maximum loss is -$1,547.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LRCX collar?

The breakeven for the LRCX collar priced on this page is roughly $330.47 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 LRCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LRCX implied volatility affect this collar?

LRCX ATM IV is at 59.70% with IV rank near 40.64%, 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.

LRCX Collar Strategy

LRCX (Lam Research Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Lam Research Corporation is a prominent supplier of equipment vital for semiconductor processing, encompassing its design, production, sales, repair, and ongoing maintenance. These sophisticated systems are fundamental for the creation of integrated circuits. The company's extensive product catalog features a variety of deposition technologies. For tungsten metallization, they provide ALTUS systems that deposit conformal films. SABRE products excel in electrochemical deposition, crucial for copper interconnect transitions and enabling copper damascene manufacturing. SOLA utilizes ultraviolet thermal processing for film treatments, while VECTOR delivers plasma-enhanced chemical vapor deposition (CVD) and atomic layer deposition (ALD) solutions.

LRCX (Lam Research Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $407.82B, a trailing P/E of 56.33, a beta of 1.87 versus the broader market, a 52-week range of 94.11-438.5, average daily share volume of 11.0M, a public-listing history dating back to 1984, approximately 19K full-time employees. These structural characteristics shape how LRCX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.87 indicates LRCX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 56.33 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. LRCX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on LRCX?

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.

LRCX snapshot

As of August 14, 2026, spot at $331.57, ATM IV 59.70%, IV rank 40.64%, expected move 17.12%. The collar on LRCX 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 LRCX specifically: IV regime affects collar pricing on both sides; mid-range LRCX IV at 59.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.12% (roughly $56.75 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 LRCX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LRCX should anchor to the underlying notional of $331.57 per share and to the trader's directional view on LRCX stock.

LRCX collar setup

The LRCX 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 LRCX at $331.57 on that close, the first option leg uses a $350.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LRCX 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 LRCX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$331.57	long
Sell 1	Call	$350.00	$14.90
Buy 1	Put	$315.00	$13.80

LRCX collar risk and reward

Net Premium / Debit: -$33,047.00
Max Profit (per contract): $1,953.00
Max Loss (per contract): -$1,547.00
Breakeven(s): $330.47
Risk / Reward Ratio: 1.262

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.

LRCX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on LRCX. 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%	-$1,547.00
$73.32	-77.9%	-$1,547.00
$146.63	-55.8%	-$1,547.00
$219.94	-33.7%	-$1,547.00
$293.25	-11.6%	-$1,547.00
$366.56	+10.6%	+$1,953.00
$439.88	+32.7%	+$1,953.00
$513.19	+54.8%	+$1,953.00
$586.50	+76.9%	+$1,953.00
$659.81	+99.0%	+$1,953.00

When traders use collar on LRCX

Collars on LRCX hedge an existing long LRCX 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.

LRCX thesis for this collar

The market-implied 1-standard-deviation range for LRCX extends from approximately $274.82 on the downside to $388.32 on the upside. A LRCX collar hedges an existing long LRCX 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 LRCX IV rank near 40.64% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on LRCX should anchor more to the directional view and the expected-move geometry. As a Technology name, LRCX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LRCX-specific events.

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

Frequently asked questions

What is a collar on LRCX?: A collar on LRCX is the collar strategy applied to LRCX (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 LRCX stock at $331.57 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LRCX chain strike and the premiums come straight from that session's bid/ask midpoint.
How are LRCX 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 LRCX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is $1,953.00 per contract and the computed maximum loss is -$1,547.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LRCX collar?: The breakeven for the LRCX collar priced on this page is roughly $330.47 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 LRCX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on LRCX?: Collars on LRCX hedge an existing long LRCX 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 LRCX implied volatility affect this collar?: LRCX ATM IV is at 59.70% with IV rank near 40.64%, 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.