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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.70%), the computed maximum profit is $2,239.00 per contract and the computed maximum loss is -$1,761.00 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 $397.61 at expiration, derived from the September 30, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The MPC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.39%; 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 46.70% with IV rank near 74.45%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

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 $115.44B, a trailing P/E of 13.45, a beta of 0.53 versus the broader market, a 52-week range of 161.93-431.08, average daily share volume of 2.5M, a public-listing history dating back to 2011, approximately 19K 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 0.53 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.

MPC snapshot

As of September 30, 2026, spot at $395.96, ATM IV 46.70%, IV rank 74.45%, expected move 13.39%. The collar on MPC below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.

Why this collar structure on MPC specifically: IV regime affects collar pricing on both sides; elevated MPC IV at 46.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.39% (roughly $53.01 on the underlying). The 16-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 $395.96 per share and to the trader's directional view on MPC stock.

MPC collar setup

The MPC collar below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MPC at $395.96 on that close, the first option leg uses a $420.00 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 16-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	$395.96	long
Sell 1	Call	$420.00	$6.75
Buy 1	Put	$380.00	$8.40

MPC collar risk and reward

Net Premium / Debit: -$39,761.00
Max Profit (per contract): $2,239.00
Max Loss (per contract): -$1,761.00
Breakeven(s): $397.61
Risk / Reward Ratio: 1.271

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%	-$1,761.00
$87.56	-77.9%	-$1,761.00
$175.11	-55.8%	-$1,761.00
$262.65	-33.7%	-$1,761.00
$350.20	-11.6%	-$1,761.00
$437.75	+10.6%	+$2,239.00
$525.30	+32.7%	+$2,239.00
$612.84	+54.8%	+$2,239.00
$700.39	+76.9%	+$2,239.00
$787.94	+99.0%	+$2,239.00

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 $342.95 on the downside to $448.97 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 74.45% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MPC at 46.70%. 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 at $395.96 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed MPC chain strike and the premiums come straight from that session's 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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 46.70%), the computed maximum profit is $2,239.00 per contract and the computed maximum loss is -$1,761.00 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 $397.61 at expiration, derived from the September 30, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The MPC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.39%; 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 46.70% with IV rank near 74.45%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.