How are LSTR 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 LSTR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is $1,374.50 per contract and the computed maximum loss is -$1,125.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a LSTR collar?

The breakeven for the LSTR collar priced on this page is roughly $206.26 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 LSTR market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current LSTR implied volatility affect this collar?

LSTR ATM IV is at 36.60% with IV rank near 38.25%, 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.

LSTR Collar Strategy

LSTR (Landstar System, Inc.), in the Industrials sector, (Integrated Freight & Logistics industry), listed on NASDAQ.

Landstar System, Inc. delivers comprehensive logistics and transportation solutions, operating across North America (U.S., Canada, and Mexico) and globally. The company's operations are divided into two main divisions: Transportation Logistics and Insurance. The core Transportation Logistics segment offers an extensive range of freight movement options. These include full truckload and less-than-truckload (LTL) services, intermodal rail, air and ocean cargo, as well as expedited ground and air delivery for time-critical shipments. This segment also handles specialized transport like heavy-haul projects, cross-border freight between the U.S. and Canada, and the U.S. and Mexico, as well as intra-Mexico and intra-Canada movements, and customs brokerage. Landstar additionally provides transportation services to other logistics providers, such as third-party logistics firms and small parcel carriers.

LSTR (Landstar System, Inc.) trades in the Industrials sector, specifically Integrated Freight & Logistics, with a market capitalization of approximately $7.10B, a trailing P/E of 57.11, a beta of 0.88 versus the broader market, a 52-week range of 119.32-228.46, average daily share volume of 485K, a public-listing history dating back to 1993, approximately 1K full-time employees. These structural characteristics shape how LSTR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.88 places LSTR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 57.11 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. LSTR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on LSTR?

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 LSTR snapshot

As of June 30, 2026, spot at $206.13, ATM IV 36.60%, IV rank 38.25%, expected move 10.49%. The collar on LSTR 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 LSTR specifically: IV regime affects collar pricing on both sides; mid-range LSTR IV at 36.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.49% (roughly $21.63 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 LSTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LSTR should anchor to the underlying notional of $206.13 per share and to the trader's directional view on LSTR stock.

LSTR collar setup

The LSTR 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 LSTR near $206.13, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LSTR 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 LSTR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$206.13	long
Sell 1	Call	$220.00	$2.20
Buy 1	Put	$195.00	$2.33

LSTR collar risk and reward

Net Premium / Debit: -$20,625.50
Max Profit (per contract): $1,374.50
Max Loss (per contract): -$1,125.50
Breakeven(s): $206.26
Risk / Reward Ratio: 1.221

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.

LSTR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on LSTR. 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%	-$1,125.50
$45.59	-77.9%	-$1,125.50
$91.16	-55.8%	-$1,125.50
$136.74	-33.7%	-$1,125.50
$182.31	-11.6%	-$1,125.50
$227.89	+10.6%	+$1,374.50
$273.46	+32.7%	+$1,374.50
$319.04	+54.8%	+$1,374.50
$364.61	+76.9%	+$1,374.50
$410.19	+99.0%	+$1,374.50

When traders use collar on LSTR

Collars on LSTR hedge an existing long LSTR 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.

LSTR thesis for this collar

The market-implied 1-standard-deviation range for LSTR extends from approximately $184.50 on the downside to $227.76 on the upside. A LSTR collar hedges an existing long LSTR 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 LSTR IV rank near 38.25% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on LSTR should anchor more to the directional view and the expected-move geometry. As a Industrials name, LSTR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LSTR-specific events.

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

Frequently asked questions

What is a collar on LSTR?: A collar on LSTR is the collar strategy applied to LSTR (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 LSTR stock trading near $206.13, the strikes shown on this page are snapped to the nearest listed LSTR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are LSTR 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 LSTR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is $1,374.50 per contract and the computed maximum loss is -$1,125.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a LSTR collar?: The breakeven for the LSTR collar priced on this page is roughly $206.26 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 LSTR market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on LSTR?: Collars on LSTR hedge an existing long LSTR 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 LSTR implied volatility affect this collar?: LSTR ATM IV is at 36.60% with IV rank near 38.25%, 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.