How are MAR 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 MAR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.20%), the computed maximum profit is $1,734.50 per contract and the computed maximum loss is -$1,765.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAR collar?

The breakeven for the MAR collar priced on this page is roughly $352.66 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 MAR market-implied 1-standard-deviation expected move is approximately 8.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAR implied volatility affect this collar?

MAR ATM IV is at 29.20% with IV rank near 49.37%, 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.

MAR Collar Strategy

MAR (Marriott International, Inc.), in the Consumer Cyclical sector, (Travel Lodging industry), listed on NASDAQ.

Marriott International, Inc. operates, franchises, and licenses hotel, residential, and timeshare properties worldwide. The company operates through U.S. and Canada, and International segments. It operates its properties under the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W Hotels, The Luxury Collection, St. Regis, EDITION, Bulgari, Marriott Hotels, Sheraton, Delta Hotels, Marriott Executive Apartments, Marriott Vacation Club, Westin, Renaissance, Le Méridien, Autograph Collection, Gaylord Hotels, Tribute Portfolio, Design Hotels, Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, Four Points, TownePlace Suites, Aloft, AC Hotels by Marriott, Protea Hotels, Element, and Moxy brand names. As of February 15, 2022, it operated approximately 7,989 properties under 30 hotel brands in 139 countries and territories. Marriott International, Inc. was founded in 1927 and is headquartered in Bethesda, Maryland.

MAR (Marriott International, Inc.) trades in the Consumer Cyclical sector, specifically Travel Lodging, with a market capitalization of approximately $92.34B, a trailing P/E of 36.39, a beta of 1.11 versus the broader market, a 52-week range of 253.56-380, average daily share volume of 1.5M, a public-listing history dating back to 1998, approximately 418K full-time employees. These structural characteristics shape how MAR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.11 places MAR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.39 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. MAR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MAR?

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 MAR snapshot

As of May 15, 2026, spot at $352.18, ATM IV 29.20%, IV rank 49.37%, expected move 8.37%. The collar on MAR 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 28-day expiry.

Why this collar structure on MAR specifically: IV regime affects collar pricing on both sides; mid-range MAR IV at 29.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.37% (roughly $29.48 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 MAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAR should anchor to the underlying notional of $352.18 per share and to the trader's directional view on MAR stock.

MAR collar setup

The MAR 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 MAR near $352.18, the first option leg uses a $370.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAR 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 MAR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$352.18	long
Sell 1	Call	$370.00	$4.60
Buy 1	Put	$335.00	$5.08

MAR collar risk and reward

Net Premium / Debit: -$35,265.50
Max Profit (per contract): $1,734.50
Max Loss (per contract): -$1,765.50
Breakeven(s): $352.66
Risk / Reward Ratio: 0.982

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.

MAR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MAR. 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%	-$1,765.50
$77.88	-77.9%	-$1,765.50
$155.75	-55.8%	-$1,765.50
$233.61	-33.7%	-$1,765.50
$311.48	-11.6%	-$1,765.50
$389.35	+10.6%	+$1,734.50
$467.22	+32.7%	+$1,734.50
$545.08	+54.8%	+$1,734.50
$622.95	+76.9%	+$1,734.50
$700.82	+99.0%	+$1,734.50

When traders use collar on MAR

Collars on MAR hedge an existing long MAR 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.

MAR thesis for this collar

The market-implied 1-standard-deviation range for MAR extends from approximately $322.70 on the downside to $381.66 on the upside. A MAR collar hedges an existing long MAR 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 MAR IV rank near 49.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MAR should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAR-specific events.

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

Frequently asked questions

What is a collar on MAR?: A collar on MAR is the collar strategy applied to MAR (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 MAR stock trading near $352.18, the strikes shown on this page are snapped to the nearest listed MAR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAR 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 MAR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.20%), the computed maximum profit is $1,734.50 per contract and the computed maximum loss is -$1,765.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAR collar?: The breakeven for the MAR collar priced on this page is roughly $352.66 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 MAR market-implied 1-standard-deviation expected move is approximately 8.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MAR?: Collars on MAR hedge an existing long MAR 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 MAR implied volatility affect this collar?: MAR ATM IV is at 29.20% with IV rank near 49.37%, 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.