How are MAA 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 MAA collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.90%), the computed maximum profit is $544.00 per contract and the computed maximum loss is -$456.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAA collar?

The breakeven for the MAA collar priced on this page is roughly $119.56 at expiration, derived from the September 29, 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 MAA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAA implied volatility affect this collar?

MAA ATM IV is at 22.90% with IV rank near 2.13%, 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.

MAA Collar Strategy

MAA (Mid-America Apartment Communities, Inc.), in the Real Estate sector, (REIT - Residential industry), listed on NYSE.

Mid-America Apartment Communities, known as MAA, is a prominent S&P 500 entity operating as a Real Estate Investment Trust (REIT). Its core objective is to generate outstanding, comprehensive investment returns for its shareholders. MAA achieves this by strategically acquiring, developing, redeveloping, owning, and managing high-quality apartment complexes. These properties are primarily located across the Southeast, Southwest, and Mid-Atlantic regions of the United States. As of December 31, 2020, the company held an interest in 102,772 apartment units, a figure that includes communities currently under development, spread throughout 16 states and the District of Columbia.

MAA (Mid-America Apartment Communities, Inc.) trades in the Real Estate sector, specifically REIT - Residential, with a market capitalization of approximately $13.70B, a trailing P/E of 33.90, a beta of 0.72 versus the broader market, a 52-week range of 116.67-144.41, average daily share volume of 1.1M, a public-listing history dating back to 1994, approximately 3K full-time employees. These structural characteristics shape how MAA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.72 places MAA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MAA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MAA?

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.

MAA snapshot

As of September 29, 2026, spot at $118.66, ATM IV 22.90%, IV rank 2.13%, expected move 6.57%. The collar on MAA below is built from the September 29, 2026 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 MAA specifically: IV regime affects collar pricing on both sides; compressed MAA IV at 22.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.57% (roughly $7.79 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 MAA expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAA should anchor to the underlying notional of $118.66 per share and to the trader's directional view on MAA stock.

MAA collar setup

The MAA collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MAA at $118.66 on that close, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAA 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 MAA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$118.66	long
Sell 1	Call	$125.00	$0.35
Buy 1	Put	$115.00	$1.25

MAA collar risk and reward

Net Premium / Debit: -$11,956.00
Max Profit (per contract): $544.00
Max Loss (per contract): -$456.00
Breakeven(s): $119.56
Risk / Reward Ratio: 1.193

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.

MAA collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MAA. 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%	-$456.00
$26.25	-77.9%	-$456.00
$52.48	-55.8%	-$456.00
$78.72	-33.7%	-$456.00
$104.95	-11.6%	-$456.00
$131.19	+10.6%	+$544.00
$157.42	+32.7%	+$544.00
$183.66	+54.8%	+$544.00
$209.89	+76.9%	+$544.00
$236.13	+99.0%	+$544.00

When traders use collar on MAA

Collars on MAA hedge an existing long MAA 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.

MAA thesis for this collar

The market-implied 1-standard-deviation range for MAA extends from approximately $110.87 on the downside to $126.45 on the upside. A MAA collar hedges an existing long MAA 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 MAA IV rank near 2.13% 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 MAA at 22.90%. As a Real Estate name, MAA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAA-specific events.

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

Frequently asked questions

What is a collar on MAA?: A collar on MAA is the collar strategy applied to MAA (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 MAA stock at $118.66 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed MAA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MAA 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 MAA collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 22.90%), the computed maximum profit is $544.00 per contract and the computed maximum loss is -$456.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAA collar?: The breakeven for the MAA collar priced on this page is roughly $119.56 at expiration, derived from the September 29, 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 MAA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MAA?: Collars on MAA hedge an existing long MAA 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 MAA implied volatility affect this collar?: MAA ATM IV is at 22.90% with IV rank near 2.13%, 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.