How are MOS 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 MOS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.28%), the computed maximum profit is $122.00 per contract and the computed maximum loss is -$78.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MOS collar?

The breakeven for the MOS collar priced on this page is roughly $20.78 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 MOS market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MOS implied volatility affect this collar?

MOS ATM IV is at 46.28% with IV rank near 59.88%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

MOS Collar Strategy

MOS (The Mosaic Company), in the Basic Materials sector, (Agricultural Inputs industry), listed on NYSE.

Operating on a global scale via its various subsidiaries, The Mosaic Company specializes in the creation and distribution of concentrated phosphate and potash crop nutrients. Its business is structured into three distinct segments: Phosphates, Potash, and Mosaic Fertilizantes. The company maintains and operates its own mining facilities to extract raw materials, which are then processed into a diverse array of phosphate-based products. These offerings encompass crucial agricultural fertilizers such as diammonium phosphate (DAP), monoammonium phosphate (MAP), and various ammoniated phosphate compounds. Additionally, Mosaic produces phosphate-derived ingredients for animal feed, primarily marketed under the Biofos and Nexfos brands, along with K-Mag, a unique double sulfate of potash magnesia product. Beyond phosphates, Mosaic is a key producer and vendor of potash.

MOS (The Mosaic Company) trades in the Basic Materials sector, specifically Agricultural Inputs, with a market capitalization of approximately $7.11B, a trailing P/E of 9.78, a beta of 0.81 versus the broader market, a 52-week range of 19.8-38.23, average daily share volume of 9.2M, a public-listing history dating back to 1988, approximately 14K full-time employees. These structural characteristics shape how MOS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.81 places MOS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 9.78 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. MOS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MOS?

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 MOS snapshot

As of June 30, 2026, spot at $20.98, ATM IV 46.28%, IV rank 59.88%, expected move 13.27%. The collar on MOS 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 31-day expiry.

Why this collar structure on MOS specifically: IV regime affects collar pricing on both sides; mid-range MOS IV at 46.28% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.27% (roughly $2.78 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MOS expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOS should anchor to the underlying notional of $20.98 per share and to the trader's directional view on MOS stock.

MOS collar setup

The MOS 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 MOS near $20.98, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOS chain at a 31-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 MOS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$20.98	long
Sell 1	Call	$22.00	$0.80
Buy 1	Put	$20.00	$0.60

MOS collar risk and reward

Net Premium / Debit: -$2,078.00
Max Profit (per contract): $122.00
Max Loss (per contract): -$78.00
Breakeven(s): $20.78
Risk / Reward Ratio: 1.564

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.

MOS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MOS. 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%	-$78.00
$4.65	-77.8%	-$78.00
$9.29	-55.7%	-$78.00
$13.92	-33.6%	-$78.00
$18.56	-11.5%	-$78.00
$23.20	+10.6%	+$122.00
$27.84	+32.7%	+$122.00
$32.47	+54.8%	+$122.00
$37.11	+76.9%	+$122.00
$41.75	+99.0%	+$122.00

When traders use collar on MOS

Collars on MOS hedge an existing long MOS 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.

MOS thesis for this collar

The market-implied 1-standard-deviation range for MOS extends from approximately $18.20 on the downside to $23.76 on the upside. A MOS collar hedges an existing long MOS 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 MOS IV rank near 59.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MOS should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, MOS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOS-specific events.

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

Frequently asked questions

What is a collar on MOS?: A collar on MOS is the collar strategy applied to MOS (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 MOS stock trading near $20.98, the strikes shown on this page are snapped to the nearest listed MOS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MOS 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 MOS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.28%), the computed maximum profit is $122.00 per contract and the computed maximum loss is -$78.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MOS collar?: The breakeven for the MOS collar priced on this page is roughly $20.78 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 MOS market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MOS?: Collars on MOS hedge an existing long MOS 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 MOS implied volatility affect this collar?: MOS ATM IV is at 46.28% with IV rank near 59.88%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.