How are MPC 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 MPC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is $1,542.00 per contract and the computed maximum loss is -$1,458.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MPC collar?

The breakeven for the MPC collar priced on this page is roughly $254.58 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 MPC market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MPC implied volatility affect this collar?

MPC ATM IV is at 36.60% with IV rank near 46.84%, 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.

MPC Collar Strategy

MPC (Marathon Petroleum Corporation), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.

Marathon Petroleum Corporation (MPC) functions as a prominent integrated energy enterprise, primarily concentrating its downstream operations across the United States. Its business is bifurcated into two main divisions: Refining & Marketing, and Midstream. The Refining & Marketing segment is responsible for processing crude oil and various other raw materials at its refineries, strategically located in the U.S. Gulf Coast, Mid-Continent, and West Coast regions. This division also acquires refined petroleum products and ethanol for subsequent distribution. Key outputs from this segment encompass a diverse array of transportation fuels, including different gasoline blends, heavy fuel oil, and asphalt.

MPC (Marathon Petroleum Corporation) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $74.17B, a trailing P/E of 16.18, a beta of 0.52 versus the broader market, a 52-week range of 158-272.46, average daily share volume of 2.4M, a public-listing history dating back to 2011, approximately 18K full-time employees. These structural characteristics shape how MPC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.52 indicates MPC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. MPC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MPC?

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 MPC snapshot

As of June 30, 2026, spot at $255.28, ATM IV 36.60%, IV rank 46.84%, expected move 10.49%. The collar on MPC 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 MPC specifically: IV regime affects collar pricing on both sides; mid-range MPC IV at 36.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.49% (roughly $26.79 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 MPC expiries trade a higher absolute premium for lower per-day decay. Position sizing on MPC should anchor to the underlying notional of $255.28 per share and to the trader's directional view on MPC stock.

MPC collar setup

The MPC 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 MPC near $255.28, the first option leg uses a $270.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MPC 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 MPC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$255.28	long
Sell 1	Call	$270.00	$3.28
Buy 1	Put	$240.00	$2.58

MPC collar risk and reward

Net Premium / Debit: -$25,458.00
Max Profit (per contract): $1,542.00
Max Loss (per contract): -$1,458.00
Breakeven(s): $254.58
Risk / Reward Ratio: 1.058

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.

MPC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MPC. 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%	-$1,458.00
$56.45	-77.9%	-$1,458.00
$112.90	-55.8%	-$1,458.00
$169.34	-33.7%	-$1,458.00
$225.78	-11.6%	-$1,458.00
$282.22	+10.6%	+$1,542.00
$338.67	+32.7%	+$1,542.00
$395.11	+54.8%	+$1,542.00
$451.55	+76.9%	+$1,542.00
$507.99	+99.0%	+$1,542.00

When traders use collar on MPC

Collars on MPC hedge an existing long MPC 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.

MPC thesis for this collar

The market-implied 1-standard-deviation range for MPC extends from approximately $228.49 on the downside to $282.07 on the upside. A MPC collar hedges an existing long MPC 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 MPC IV rank near 46.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MPC should anchor more to the directional view and the expected-move geometry. As a Energy name, MPC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MPC-specific events.

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

Frequently asked questions

What is a collar on MPC?: A collar on MPC is the collar strategy applied to MPC (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 MPC stock trading near $255.28, the strikes shown on this page are snapped to the nearest listed MPC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MPC 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 MPC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.60%), the computed maximum profit is $1,542.00 per contract and the computed maximum loss is -$1,458.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MPC collar?: The breakeven for the MPC collar priced on this page is roughly $254.58 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 MPC market-implied 1-standard-deviation expected move is approximately 10.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MPC?: Collars on MPC hedge an existing long MPC 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 MPC implied volatility affect this collar?: MPC ATM IV is at 36.60% with IV rank near 46.84%, 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.