How are MAT 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 MAT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.80%), the computed maximum profit is $100.50 per contract and the computed maximum loss is -$99.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MAT collar?

The breakeven for the MAT collar priced on this page is roughly $15.00 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 MAT market-implied 1-standard-deviation expected move is approximately 9.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MAT implied volatility affect this collar?

MAT ATM IV is at 32.80% with IV rank near 16.76%, 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.

MAT Collar Strategy

MAT (Mattel, Inc.), in the Consumer Cyclical sector, (Leisure industry), listed on NASDAQ.

Mattel, Inc., a children's entertainment company, designs and produces toys and consumer products worldwide. The company operates through North America, International, and American Girl segments. It offers dolls and accessories, as well as content, gaming, and lifestyle products for children under the Barbie, Monster High, American Girl, Polly Pocket, Spirit, and Enchantimals brands; dolls and books under the American Girl brand name; die-cast vehicles, tracks, playsets, and accessories for kids of all ages, and collectors under the Hot Wheels, Monster Trucks, Matchbox, CARS, and Mario Kart brand names; and infant, toddler, and preschool products comprising content, toys, live events, and other lifestyle products under the Fisher-Price and Thomas & Friends, Power wheels, and Fireman Sam brands. The company also provides action figures, building sets, and games under the Masters of the Universe, MEGA, UNO, Lightyear, Jurassic World, WWE, and Star Wars brands; and licensor partner brands, including Disney, NBCUniversal, WWE, Microsoft, Nickelodeon, Warner Bros, and Sanrio. It sells its products directly to consumers through its catalog, website, and proprietary retail stores; retailers, including discount and free-standing toy stores, chain stores, department stores, and other retail outlets; and wholesalers, as well as through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.

MAT (Mattel, Inc.) trades in the Consumer Cyclical sector, specifically Leisure, with a market capitalization of approximately $4.31B, a trailing P/E of 8.84, a beta of 0.74 versus the broader market, a 52-week range of 14.1-22.48, average daily share volume of 5.0M, a public-listing history dating back to 1976, approximately 34K full-time employees. These structural characteristics shape how MAT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.74 places MAT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 8.84 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a collar on MAT?

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 MAT snapshot

As of May 15, 2026, spot at $15.17, ATM IV 32.80%, IV rank 16.76%, expected move 9.40%. The collar on MAT 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 MAT specifically: IV regime affects collar pricing on both sides; compressed MAT IV at 32.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.40% (roughly $1.43 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 MAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAT should anchor to the underlying notional of $15.17 per share and to the trader's directional view on MAT stock.

MAT collar setup

The MAT 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 MAT near $15.17, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAT 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 MAT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$15.17	long
Sell 1	Call	$16.00	$0.35
Buy 1	Put	$14.00	$0.18

MAT collar risk and reward

Net Premium / Debit: -$1,499.50
Max Profit (per contract): $100.50
Max Loss (per contract): -$99.50
Breakeven(s): $15.00
Risk / Reward Ratio: 1.010

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.

MAT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MAT. 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	-99.9%	-$99.50
$3.36	-77.8%	-$99.50
$6.72	-55.7%	-$99.50
$10.07	-33.6%	-$99.50
$13.42	-11.5%	-$99.50
$16.78	+10.6%	+$100.50
$20.13	+32.7%	+$100.50
$23.48	+54.8%	+$100.50
$26.83	+76.9%	+$100.50
$30.19	+99.0%	+$100.50

When traders use collar on MAT

Collars on MAT hedge an existing long MAT 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.

MAT thesis for this collar

The market-implied 1-standard-deviation range for MAT extends from approximately $13.74 on the downside to $16.60 on the upside. A MAT collar hedges an existing long MAT 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 MAT IV rank near 16.76% 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 MAT at 32.80%. As a Consumer Cyclical name, MAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAT-specific events.

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

Frequently asked questions

What is a collar on MAT?: A collar on MAT is the collar strategy applied to MAT (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 MAT stock trading near $15.17, the strikes shown on this page are snapped to the nearest listed MAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MAT 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 MAT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.80%), the computed maximum profit is $100.50 per contract and the computed maximum loss is -$99.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MAT collar?: The breakeven for the MAT collar priced on this page is roughly $15.00 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 MAT market-implied 1-standard-deviation expected move is approximately 9.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MAT?: Collars on MAT hedge an existing long MAT 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 MAT implied volatility affect this collar?: MAT ATM IV is at 32.80% with IV rank near 16.76%, 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.