How are MMS 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 MMS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.60%), the computed maximum profit is $257.50 per contract and the computed maximum loss is -$242.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MMS collar?

The breakeven for the MMS collar priced on this page is roughly $57.43 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 MMS market-implied 1-standard-deviation expected move is approximately 11.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MMS implied volatility affect this collar?

MMS ATM IV is at 40.60% with IV rank near 4.90%, 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.

MMS Collar Strategy

MMS (Maximus, Inc.), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.

Maximus, Inc. provides business process services (BPS) to government health and human services programs. It operates through three segments: U.S. Services, U.S. Federal Services, and Outside the U.S. The U.S. Services segment offers various BPS solutions, such as program administration, appeals and assessments, and related consulting works for U.S. state and local government programs, including the Affordable Care Act, Medicaid, the Children's Health Insurance Program, Temporary Assistance to Needy Families, child support programs, Preadmission Screening and Resident Reviews, and Independent Developmental Disability assessments.

MMS (Maximus, Inc.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $3.12B, a trailing P/E of 8.69, a beta of 0.60 versus the broader market, a 52-week range of 57.32-100, average daily share volume of 725K, a public-listing history dating back to 1997, approximately 41K full-time employees. These structural characteristics shape how MMS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates MMS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.69 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. MMS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MMS?

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 MMS snapshot

As of May 15, 2026, spot at $59.05, ATM IV 40.60%, IV rank 4.90%, expected move 11.64%. The collar on MMS 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 63-day expiry.

Why this collar structure on MMS specifically: IV regime affects collar pricing on both sides; compressed MMS IV at 40.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.64% (roughly $6.87 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MMS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MMS should anchor to the underlying notional of $59.05 per share and to the trader's directional view on MMS stock.

MMS collar setup

The MMS 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 MMS near $59.05, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MMS chain at a 63-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 MMS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$59.05	long
Sell 1	Call	$60.00	$3.80
Buy 1	Put	$55.00	$2.18

MMS collar risk and reward

Net Premium / Debit: -$5,742.50
Max Profit (per contract): $257.50
Max Loss (per contract): -$242.50
Breakeven(s): $57.43
Risk / Reward Ratio: 1.062

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.

MMS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MMS. 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	-100.0%	-$242.50
$13.07	-77.9%	-$242.50
$26.12	-55.8%	-$242.50
$39.18	-33.7%	-$242.50
$52.23	-11.5%	-$242.50
$65.29	+10.6%	+$257.50
$78.34	+32.7%	+$257.50
$91.40	+54.8%	+$257.50
$104.45	+76.9%	+$257.50
$117.51	+99.0%	+$257.50

When traders use collar on MMS

Collars on MMS hedge an existing long MMS 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.

MMS thesis for this collar

The market-implied 1-standard-deviation range for MMS extends from approximately $52.18 on the downside to $65.92 on the upside. A MMS collar hedges an existing long MMS 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 MMS IV rank near 4.90% 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 MMS at 40.60%. As a Industrials name, MMS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MMS-specific events.

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

Frequently asked questions

What is a collar on MMS?: A collar on MMS is the collar strategy applied to MMS (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 MMS stock trading near $59.05, the strikes shown on this page are snapped to the nearest listed MMS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MMS 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 MMS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.60%), the computed maximum profit is $257.50 per contract and the computed maximum loss is -$242.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MMS collar?: The breakeven for the MMS collar priced on this page is roughly $57.43 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 MMS market-implied 1-standard-deviation expected move is approximately 11.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MMS?: Collars on MMS hedge an existing long MMS 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 MMS implied volatility affect this collar?: MMS ATM IV is at 40.60% with IV rank near 4.90%, 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.