How are MSI 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 MSI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.60%), the computed maximum profit is $1,808.00 per contract and the computed maximum loss is -$2,192.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MSI collar?

The breakeven for the MSI collar priced on this page is roughly $391.92 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 MSI market-implied 1-standard-deviation expected move is approximately 7.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MSI implied volatility affect this collar?

MSI ATM IV is at 25.60% with IV rank near 29.30%, 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.

MSI Collar Strategy

MSI (Motorola Solutions, Inc.), in the Technology sector, (Communication Equipment industry), listed on NYSE.

Motorola Solutions, Inc. provides mission critical communications and analytics in the United States, the United Kingdom, Canada, and internationally. The company operates in two segments, Products and Systems Integration, and Software and Services. The Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices and infrastructure, as well as the implementation, and integration of systems, devices, software, and applications for government, public safety, and commercial customers who operate private communications networks and video security solutions, as well as manage a mobile workforce. Its land mobile radio communications and video security and access control devices include two-way portable and vehicle-mounted radios, fixed and mobile video cameras, and accessories; radio network core and central processing software, base stations, consoles, and repeaters; and video analytics, network video management hardware and software, and access control solutions. The Software and Services segment provides repair, technical support, and hardware maintenance services. This segment also offers monitoring, software updates, and cybersecurity services; and public safety and enterprise command center software, unified communications applications, and video software solutions through on-premise and as a service.

MSI (Motorola Solutions, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $66.05B, a trailing P/E of 31.56, a beta of 0.94 versus the broader market, a 52-week range of 359.36-492.22, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 21K full-time employees. These structural characteristics shape how MSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.94 places MSI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MSI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MSI?

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 MSI snapshot

As of May 15, 2026, spot at $394.07, ATM IV 25.60%, IV rank 29.30%, expected move 7.34%. The collar on MSI 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 34-day expiry.

Why this collar structure on MSI specifically: IV regime affects collar pricing on both sides; compressed MSI IV at 25.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.34% (roughly $28.92 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSI should anchor to the underlying notional of $394.07 per share and to the trader's directional view on MSI stock.

MSI collar setup

The MSI 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 MSI near $394.07, the first option leg uses a $410.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSI chain at a 34-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 MSI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$394.07	long
Sell 1	Call	$410.00	$6.25
Buy 1	Put	$370.00	$4.10

MSI collar risk and reward

Net Premium / Debit: -$39,192.00
Max Profit (per contract): $1,808.00
Max Loss (per contract): -$2,192.00
Breakeven(s): $391.92
Risk / Reward Ratio: 0.825

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.

MSI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MSI. 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%	-$2,192.00
$87.14	-77.9%	-$2,192.00
$174.27	-55.8%	-$2,192.00
$261.40	-33.7%	-$2,192.00
$348.53	-11.6%	-$2,192.00
$435.66	+10.6%	+$1,808.00
$522.79	+32.7%	+$1,808.00
$609.92	+54.8%	+$1,808.00
$697.05	+76.9%	+$1,808.00
$784.18	+99.0%	+$1,808.00

When traders use collar on MSI

Collars on MSI hedge an existing long MSI 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.

MSI thesis for this collar

The market-implied 1-standard-deviation range for MSI extends from approximately $365.15 on the downside to $422.99 on the upside. A MSI collar hedges an existing long MSI 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 MSI IV rank near 29.30% 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 MSI at 25.60%. As a Technology name, MSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSI-specific events.

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

Frequently asked questions

What is a collar on MSI?: A collar on MSI is the collar strategy applied to MSI (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 MSI stock trading near $394.07, the strikes shown on this page are snapped to the nearest listed MSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MSI 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 MSI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.60%), the computed maximum profit is $1,808.00 per contract and the computed maximum loss is -$2,192.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MSI collar?: The breakeven for the MSI collar priced on this page is roughly $391.92 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 MSI market-implied 1-standard-deviation expected move is approximately 7.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MSI?: Collars on MSI hedge an existing long MSI 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 MSI implied volatility affect this collar?: MSI ATM IV is at 25.60% with IV rank near 29.30%, 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.