How are MHO 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 MHO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $991.00 per contract and the computed maximum loss is -$1,009.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MHO collar?

The breakeven for the MHO collar priced on this page is roughly $160.09 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 MHO market-implied 1-standard-deviation expected move is approximately 9.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MHO implied volatility affect this collar?

MHO ATM IV is at 33.80% with IV rank near 16.37%, 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.

MHO Collar Strategy

MHO (M/I Homes, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.

M/I Homes, Inc. (MHO), along with its affiliated companies, constructs single-family residences across a broad geographical area, including Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. Its operations are divided into three primary segments: Northern Homebuilding, Southern Homebuilding, and Financial Services. Under the M/I Homes brand, the company engages in the entire process of home development, from conceptual design and construction to marketing and sales. It caters to a diverse clientele, encompassing first-time purchasers, millennials, those upgrading their homes, empty-nesters, and luxury market consumers, offering both detached single-family houses and attached townhouses. Beyond building, M/I Homes acquires raw land, transforming it into ready-to-build lots. These developed parcels are then utilized for its own single-family home construction projects or sold to external parties.

MHO (M/I Homes, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $4.20B, a trailing P/E of 11.79, a beta of 1.64 versus the broader market, a 52-week range of 110.95-163.66, average daily share volume of 248K, a public-listing history dating back to 1993, approximately 2K full-time employees. These structural characteristics shape how MHO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.64 indicates MHO 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 11.79 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 MHO?

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 MHO snapshot

As of June 30, 2026, spot at $160.33, ATM IV 33.80%, IV rank 16.37%, expected move 9.69%. The collar on MHO 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 17-day expiry.

Why this collar structure on MHO specifically: IV regime affects collar pricing on both sides; compressed MHO IV at 33.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.69% (roughly $15.54 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHO should anchor to the underlying notional of $160.33 per share and to the trader's directional view on MHO stock.

MHO collar setup

The MHO 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 MHO near $160.33, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MHO chain at a 17-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 MHO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$160.33	long
Sell 1	Call	$170.00	$1.35
Buy 1	Put	$150.00	$1.11

MHO collar risk and reward

Net Premium / Debit: -$16,009.00
Max Profit (per contract): $991.00
Max Loss (per contract): -$1,009.00
Breakeven(s): $160.09
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.

MHO collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MHO. 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%	-$1,009.00
$35.46	-77.9%	-$1,009.00
$70.91	-55.8%	-$1,009.00
$106.36	-33.7%	-$1,009.00
$141.80	-11.6%	-$1,009.00
$177.25	+10.6%	+$991.00
$212.70	+32.7%	+$991.00
$248.15	+54.8%	+$991.00
$283.60	+76.9%	+$991.00
$319.05	+99.0%	+$991.00

When traders use collar on MHO

Collars on MHO hedge an existing long MHO 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.

MHO thesis for this collar

The market-implied 1-standard-deviation range for MHO extends from approximately $144.79 on the downside to $175.87 on the upside. A MHO collar hedges an existing long MHO 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 MHO IV rank near 16.37% 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 MHO at 33.80%. As a Consumer Cyclical name, MHO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MHO-specific events.

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

Frequently asked questions

What is a collar on MHO?: A collar on MHO is the collar strategy applied to MHO (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 MHO stock trading near $160.33, the strikes shown on this page are snapped to the nearest listed MHO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MHO 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 MHO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.80%), the computed maximum profit is $991.00 per contract and the computed maximum loss is -$1,009.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MHO collar?: The breakeven for the MHO collar priced on this page is roughly $160.09 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 MHO market-implied 1-standard-deviation expected move is approximately 9.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MHO?: Collars on MHO hedge an existing long MHO 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 MHO implied volatility affect this collar?: MHO ATM IV is at 33.80% with IV rank near 16.37%, 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.