How are MTN 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 MTN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $506.50 per contract and the computed maximum loss is -$493.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MTN collar?

The breakeven for the MTN collar priced on this page is roughly $134.94 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 MTN market-implied 1-standard-deviation expected move is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MTN implied volatility affect this collar?

MTN ATM IV is at 40.00% with IV rank near 30.77%, 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.

MTN Collar Strategy

MTN (Vail Resorts, Inc.), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NYSE.

Vail Resorts, Inc., operating through its various subsidiary entities, oversees a portfolio of mountain resorts and urban ski areas located across the United States. The company's business activities are structured into three distinct segments: Mountain, Lodging, and Real Estate. The Mountain division is responsible for managing 37 prominent mountain destinations and regional ski facilities. This segment also handles a range of complementary services, including ski instruction, dining establishments, retail and equipment rental operations, and real estate brokerage. The Lodging segment encompasses the ownership and/or management of numerous luxury hotels, condominiums, and other accommodation options, particularly those under the RockResorts brand. Additionally, it oversees condominiums situated near Vail's mountain resorts, operates various destination resorts and golf courses, and furnishes ground transportation services within its resort areas.

MTN (Vail Resorts, Inc.) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $4.92B, a trailing P/E of 27.83, a beta of 0.73 versus the broader market, a 52-week range of 118.51-172, average daily share volume of 958K, a public-listing history dating back to 1997, approximately 8K full-time employees. These structural characteristics shape how MTN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.73 places MTN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MTN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on MTN?

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 MTN snapshot

As of June 29, 2026, spot at $135.56, ATM IV 40.00%, IV rank 30.77%, expected move 11.47%. The collar on MTN 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 18-day expiry.

Why this collar structure on MTN specifically: IV regime affects collar pricing on both sides; mid-range MTN IV at 40.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.47% (roughly $15.55 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MTN expiries trade a higher absolute premium for lower per-day decay. Position sizing on MTN should anchor to the underlying notional of $135.56 per share and to the trader's directional view on MTN stock.

MTN collar setup

The MTN 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 MTN near $135.56, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MTN chain at a 18-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 MTN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$135.56	long
Sell 1	Call	$140.00	$3.10
Buy 1	Put	$130.00	$2.48

MTN collar risk and reward

Net Premium / Debit: -$13,493.50
Max Profit (per contract): $506.50
Max Loss (per contract): -$493.50
Breakeven(s): $134.94
Risk / Reward Ratio: 1.026

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.

MTN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on MTN. 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%	-$493.50
$29.98	-77.9%	-$493.50
$59.95	-55.8%	-$493.50
$89.93	-33.7%	-$493.50
$119.90	-11.6%	-$493.50
$149.87	+10.6%	+$506.50
$179.84	+32.7%	+$506.50
$209.81	+54.8%	+$506.50
$239.79	+76.9%	+$506.50
$269.76	+99.0%	+$506.50

When traders use collar on MTN

Collars on MTN hedge an existing long MTN 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.

MTN thesis for this collar

The market-implied 1-standard-deviation range for MTN extends from approximately $120.01 on the downside to $151.11 on the upside. A MTN collar hedges an existing long MTN 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 MTN IV rank near 30.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MTN should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MTN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MTN-specific events.

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

Frequently asked questions

What is a collar on MTN?: A collar on MTN is the collar strategy applied to MTN (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 MTN stock trading near $135.56, the strikes shown on this page are snapped to the nearest listed MTN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MTN 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 MTN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.00%), the computed maximum profit is $506.50 per contract and the computed maximum loss is -$493.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MTN collar?: The breakeven for the MTN collar priced on this page is roughly $134.94 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 MTN market-implied 1-standard-deviation expected move is approximately 11.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on MTN?: Collars on MTN hedge an existing long MTN 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 MTN implied volatility affect this collar?: MTN ATM IV is at 40.00% with IV rank near 30.77%, 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.