How are MDB 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 MDB collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 80.19%), the computed maximum profit is $2,537.00 per contract and the computed maximum loss is -$1,963.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MDB collar?

The breakeven for the MDB collar priced on this page is roughly $454.63 at expiration, derived from the August 14, 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 MDB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MDB implied volatility affect this collar?

MDB ATM IV is at 80.19% with IV rank near 70.85%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

MDB Collar Strategy

MDB (MongoDB, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.

MongoDB, Inc. serves as a global provider of a versatile database platform. The company's offerings feature MongoDB Enterprise Advanced, a sophisticated commercial database server designed for corporate clients, which can be deployed in cloud, on-premises, or hybrid environments. It also presents MongoDB Atlas, a fully managed, multi-cloud database-as-a-service (DBaaS) solution. For developers seeking to start with MongoDB, the company offers a free, downloadable Community Server that includes fundamental database functionalities. Beyond its core database products, MongoDB, Inc. provides professional services such as consulting and training. Founded in 2007 and based in New York, New York, the company was formerly known as 10gen, Inc. before adopting the name MongoDB, Inc. in August 2013.

MDB (MongoDB, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $35.22B, a beta of 1.55 versus the broader market, a 52-week range of 202.05-444.72, average daily share volume of 1.9M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how MDB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.55 indicates MDB has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on MDB?

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.

MDB snapshot

As of August 14, 2026, spot at $458.13, ATM IV 80.19%, IV rank 70.85%, expected move 22.99%. The collar on MDB below is built from the August 14, 2026 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 MDB specifically: IV regime affects collar pricing on both sides; elevated MDB IV at 80.19% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.99% (roughly $105.33 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 MDB expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDB should anchor to the underlying notional of $458.13 per share and to the trader's directional view on MDB stock.

MDB collar setup

The MDB collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MDB at $458.13 on that close, the first option leg uses a $480.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDB 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 MDB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$458.13	long
Sell 1	Call	$480.00	$33.10
Buy 1	Put	$435.00	$29.60

MDB collar risk and reward

Net Premium / Debit: -$45,463.00
Max Profit (per contract): $2,537.00
Max Loss (per contract): -$1,963.00
Breakeven(s): $454.63
Risk / Reward Ratio: 1.292

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.

MDB collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MDB. 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%	-$1,963.00
$101.30	-77.9%	-$1,963.00
$202.60	-55.8%	-$1,963.00
$303.89	-33.7%	-$1,963.00
$405.19	-11.6%	-$1,963.00
$506.48	+10.6%	+$2,537.00
$607.77	+32.7%	+$2,537.00
$709.07	+54.8%	+$2,537.00
$810.36	+76.9%	+$2,537.00
$911.66	+99.0%	+$2,537.00

When traders use collar on MDB

Collars on MDB hedge an existing long MDB 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.

MDB thesis for this collar

The market-implied 1-standard-deviation range for MDB extends from approximately $352.80 on the downside to $563.46 on the upside. A MDB collar hedges an existing long MDB 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 MDB IV rank near 70.85% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MDB at 80.19%. As a Technology name, MDB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDB-specific events.

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

Frequently asked questions

What is a collar on MDB?: A collar on MDB is the collar strategy applied to MDB (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 MDB stock at $458.13 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MDB chain strike and the premiums come straight from that session's bid/ask midpoint.
How are MDB 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 MDB collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 80.19%), the computed maximum profit is $2,537.00 per contract and the computed maximum loss is -$1,963.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MDB collar?: The breakeven for the MDB collar priced on this page is roughly $454.63 at expiration, derived from the August 14, 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 MDB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MDB?: Collars on MDB hedge an existing long MDB 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 MDB implied volatility affect this collar?: MDB ATM IV is at 80.19% with IV rank near 70.85%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.