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 end-of-day chain at a 30-day expiry (ATM IV 21.00%), the computed maximum profit is $468.50 per contract and the computed maximum loss is -$531.50 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 $125.32 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 MAA market-implied 1-standard-deviation expected move is approximately 6.02%; 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 21.00% with IV rank near 1.94%, 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.

MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the United States. As of December 31, 2020, MAA had ownership interest in 102,772 apartment units, including communities currently in development, across 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 $15.05B, a trailing P/E of 38.66, a beta of 0.76 versus the broader market, a 52-week range of 120.3-163.63, average daily share volume of 948K, 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 0.76 places MAA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 38.66 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. 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.

Current MAA snapshot

As of May 15, 2026, spot at $125.44, ATM IV 21.00%, IV rank 1.94%, expected move 6.02%. The collar on MAA 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 34-day expiry.

Why this collar structure on MAA specifically: IV regime affects collar pricing on both sides; compressed MAA IV at 21.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.02% (roughly $7.55 on the underlying). The 34-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 $125.44 per share and to the trader's directional view on MAA stock.

MAA collar setup

The MAA 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 MAA near $125.44, 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 MAA chain at a 34-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	$125.44	long
Sell 1	Call	$130.00	$1.45
Buy 1	Put	$120.00	$1.33

MAA collar risk and reward

Net Premium / Debit: -$12,531.50
Max Profit (per contract): $468.50
Max Loss (per contract): -$531.50
Breakeven(s): $125.32
Risk / Reward Ratio: 0.881

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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$531.50
$27.74	-77.9%	-$531.50
$55.48	-55.8%	-$531.50
$83.21	-33.7%	-$531.50
$110.95	-11.6%	-$531.50
$138.68	+10.6%	+$468.50
$166.42	+32.7%	+$468.50
$194.15	+54.8%	+$468.50
$221.88	+76.9%	+$468.50
$249.62	+99.0%	+$468.50

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 $117.89 on the downside to $132.99 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 1.94% 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 21.00%. 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 trading near $125.44, the strikes shown on this page are snapped to the nearest listed MAA chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 21.00%), the computed maximum profit is $468.50 per contract and the computed maximum loss is -$531.50 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 $125.32 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 MAA market-implied 1-standard-deviation expected move is approximately 6.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on 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 21.00% with IV rank near 1.94%, 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.