How are MGNI 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 MGNI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is $50.50 per contract and the computed maximum loss is -$49.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MGNI collar?

The breakeven for the MGNI collar priced on this page is roughly $12.50 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 MGNI market-implied 1-standard-deviation expected move is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MGNI implied volatility affect this collar?

MGNI ATM IV is at 64.60% with IV rank near 29.52%, 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.

MGNI Collar Strategy

MGNI (Magnite, Inc.), in the Communication Services sector, (Advertising Agencies industry), listed on NASDAQ.

Magnite, Inc. operates an independent sell-side advertising platform in the United States and internationally. The company's platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties, to manage and monetize their inventory; and provides applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory. It markets its technology solutions to buyers and sellers through a sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

MGNI (Magnite, Inc.) trades in the Communication Services sector, specifically Advertising Agencies, with a market capitalization of approximately $1.85B, a trailing P/E of 11.68, a beta of 2.32 versus the broader market, a 52-week range of 10.82-26.65, average daily share volume of 2.3M, a public-listing history dating back to 2014, approximately 905 full-time employees. These structural characteristics shape how MGNI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.32 indicates MGNI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 11.68 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 MGNI?

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 MGNI snapshot

As of May 15, 2026, spot at $12.82, ATM IV 64.60%, IV rank 29.52%, expected move 18.52%. The collar on MGNI 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 MGNI specifically: IV regime affects collar pricing on both sides; compressed MGNI IV at 64.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $2.37 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 MGNI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MGNI should anchor to the underlying notional of $12.82 per share and to the trader's directional view on MGNI stock.

MGNI collar setup

The MGNI 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 MGNI near $12.82, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MGNI 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 MGNI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$12.82	long
Sell 1	Call	$13.00	$0.95
Buy 1	Put	$12.00	$0.63

MGNI collar risk and reward

Net Premium / Debit: -$1,249.50
Max Profit (per contract): $50.50
Max Loss (per contract): -$49.50
Breakeven(s): $12.50
Risk / Reward Ratio: 1.020

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.

MGNI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MGNI. 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%	-$49.50
$2.84	-77.8%	-$49.50
$5.68	-55.7%	-$49.50
$8.51	-33.6%	-$49.50
$11.34	-11.5%	-$49.50
$14.18	+10.6%	+$50.50
$17.01	+32.7%	+$50.50
$19.84	+54.8%	+$50.50
$22.68	+76.9%	+$50.50
$25.51	+99.0%	+$50.50

When traders use collar on MGNI

Collars on MGNI hedge an existing long MGNI 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.

MGNI thesis for this collar

The market-implied 1-standard-deviation range for MGNI extends from approximately $10.45 on the downside to $15.19 on the upside. A MGNI collar hedges an existing long MGNI 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 MGNI IV rank near 29.52% 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 MGNI at 64.60%. As a Communication Services name, MGNI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MGNI-specific events.

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

Frequently asked questions

What is a collar on MGNI?: A collar on MGNI is the collar strategy applied to MGNI (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 MGNI stock trading near $12.82, the strikes shown on this page are snapped to the nearest listed MGNI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MGNI 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 MGNI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is $50.50 per contract and the computed maximum loss is -$49.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MGNI collar?: The breakeven for the MGNI collar priced on this page is roughly $12.50 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 MGNI market-implied 1-standard-deviation expected move is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MGNI?: Collars on MGNI hedge an existing long MGNI 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 MGNI implied volatility affect this collar?: MGNI ATM IV is at 64.60% with IV rank near 29.52%, 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.