How are METC 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 METC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 82.20%), the computed maximum profit is $65.50 per contract and the computed maximum loss is -$34.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a METC collar?

The breakeven for the METC collar priced on this page is roughly $14.35 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 METC market-implied 1-standard-deviation expected move is approximately 23.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current METC implied volatility affect this collar?

METC ATM IV is at 82.20% with IV rank near 11.37%, 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.

METC Collar Strategy

METC (Ramaco Resources, Inc.), in the Energy sector, (Coal industry), listed on NASDAQ.

Ramaco Resources, Inc. produces and sells metallurgical coal. The company's development portfolio includes the Elk Creek project consisting of approximately 20,200 acres of controlled mineral and 16 seams located in southern West Virginia; the Berwind property comprising approximately 41,300 acres of controlled mineral and an area of Squire Jim seam coal deposits, which is situated on the border of West Virginia and Virginia; the Knox Creek property consisting of approximately 62,100 acres of controlled mineral that is located in Virginia; and the RAM Mine property comprising approximately 1,570 acres of controlled mineral, which is situated in southwestern Pennsylvania. The company serves blast furnace steel mills and coke plants in the United States, as well as international metallurgical coal consumers. The company was founded in 2015 and is headquartered in Lexington, Kentucky.

METC (Ramaco Resources, Inc.) trades in the Energy sector, specifically Coal, with a market capitalization of approximately $856.8M, a beta of 1.35 versus the broader market, a 52-week range of 8.51-57.8, average daily share volume of 1.8M, a public-listing history dating back to 2017, approximately 984 full-time employees. These structural characteristics shape how METC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates METC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. METC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on METC?

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 METC snapshot

As of May 15, 2026, spot at $14.42, ATM IV 82.20%, IV rank 11.37%, expected move 23.57%. The collar on METC 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 METC specifically: IV regime affects collar pricing on both sides; compressed METC IV at 82.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 23.57% (roughly $3.40 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 METC expiries trade a higher absolute premium for lower per-day decay. Position sizing on METC should anchor to the underlying notional of $14.42 per share and to the trader's directional view on METC stock.

METC collar setup

The METC 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 METC near $14.42, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed METC 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 METC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.42	long
Sell 1	Call	$15.00	$1.28
Buy 1	Put	$14.00	$1.20

METC collar risk and reward

Net Premium / Debit: -$1,434.50
Max Profit (per contract): $65.50
Max Loss (per contract): -$34.50
Breakeven(s): $14.35
Risk / Reward Ratio: 1.899

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.

METC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on METC. 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%	-$34.50
$3.20	-77.8%	-$34.50
$6.38	-55.7%	-$34.50
$9.57	-33.6%	-$34.50
$12.76	-11.5%	-$34.50
$15.95	+10.6%	+$65.50
$19.13	+32.7%	+$65.50
$22.32	+54.8%	+$65.50
$25.51	+76.9%	+$65.50
$28.70	+99.0%	+$65.50

When traders use collar on METC

Collars on METC hedge an existing long METC 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.

METC thesis for this collar

The market-implied 1-standard-deviation range for METC extends from approximately $11.02 on the downside to $17.82 on the upside. A METC collar hedges an existing long METC 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 METC IV rank near 11.37% 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 METC at 82.20%. As a Energy name, METC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to METC-specific events.

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

Frequently asked questions

What is a collar on METC?: A collar on METC is the collar strategy applied to METC (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 METC stock trading near $14.42, the strikes shown on this page are snapped to the nearest listed METC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are METC 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 METC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 82.20%), the computed maximum profit is $65.50 per contract and the computed maximum loss is -$34.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a METC collar?: The breakeven for the METC collar priced on this page is roughly $14.35 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 METC market-implied 1-standard-deviation expected move is approximately 23.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on METC?: Collars on METC hedge an existing long METC 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 METC implied volatility affect this collar?: METC ATM IV is at 82.20% with IV rank near 11.37%, 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.