How are NEE 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 NEE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.82%), the computed maximum profit is $445.50 per contract and the computed maximum loss is -$454.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NEE collar?

The breakeven for the NEE collar priced on this page is roughly $93.54 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 NEE market-implied 1-standard-deviation expected move is approximately 7.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NEE implied volatility affect this collar?

NEE ATM IV is at 24.82% with IV rank near 32.33%, 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.

NEE Collar Strategy

NEE (NextEra Energy, Inc.), in the Utilities sector, (Regulated Electric industry), listed on NYSE.

NextEra Energy, Inc., through its subsidiaries, generates, transmits, distributes, and sells electric power to retail and wholesale customers in North America. The company generates electricity through wind, solar, nuclear, coal, and natural gas facilities. It also develops, constructs, and operates long-term contracted assets that consists of clean energy solutions, such as renewable generation facilities, battery storage projects, and electric transmission facilities; sells energy commodities; and owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets. As of December 31, 2021, the company had approximately 28,564 megawatts of net generating capacity; approximately 77,000 circuit miles of transmission and distribution lines; and 696 substations. It serves approximately 11 million people through approximately 5.7 million customer accounts in the east and lower west coasts of Florida. The company was formerly known as FPL Group, Inc. and changed its name to NextEra Energy, Inc. in 2010.

NEE (NextEra Energy, Inc.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $197.79B, a trailing P/E of 24.21, a beta of 0.72 versus the broader market, a 52-week range of 63.88-98.75, average daily share volume of 9.4M, a public-listing history dating back to 2014, approximately 17K full-time employees. These structural characteristics shape how NEE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.72 places NEE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NEE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on NEE?

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 NEE snapshot

As of May 15, 2026, spot at $93.25, ATM IV 24.82%, IV rank 32.33%, expected move 7.11%. The collar on NEE 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 28-day expiry.

Why this collar structure on NEE specifically: IV regime affects collar pricing on both sides; mid-range NEE IV at 24.82% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.11% (roughly $6.63 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NEE expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEE should anchor to the underlying notional of $93.25 per share and to the trader's directional view on NEE stock.

NEE collar setup

The NEE 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 NEE near $93.25, the first option leg uses a $98.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEE chain at a 28-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 NEE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$93.25	long
Sell 1	Call	$98.00	$0.75
Buy 1	Put	$89.00	$1.04

NEE collar risk and reward

Net Premium / Debit: -$9,354.50
Max Profit (per contract): $445.50
Max Loss (per contract): -$454.50
Breakeven(s): $93.54
Risk / Reward Ratio: 0.980

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.

NEE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on NEE. 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%	-$454.50
$20.63	-77.9%	-$454.50
$41.24	-55.8%	-$454.50
$61.86	-33.7%	-$454.50
$82.48	-11.6%	-$454.50
$103.09	+10.6%	+$445.50
$123.71	+32.7%	+$445.50
$144.33	+54.8%	+$445.50
$164.95	+76.9%	+$445.50
$185.56	+99.0%	+$445.50

When traders use collar on NEE

Collars on NEE hedge an existing long NEE 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.

NEE thesis for this collar

The market-implied 1-standard-deviation range for NEE extends from approximately $86.62 on the downside to $99.88 on the upside. A NEE collar hedges an existing long NEE 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 NEE IV rank near 32.33% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NEE should anchor more to the directional view and the expected-move geometry. As a Utilities name, NEE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEE-specific events.

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

Frequently asked questions

What is a collar on NEE?: A collar on NEE is the collar strategy applied to NEE (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 NEE stock trading near $93.25, the strikes shown on this page are snapped to the nearest listed NEE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NEE 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 NEE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.82%), the computed maximum profit is $445.50 per contract and the computed maximum loss is -$454.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NEE collar?: The breakeven for the NEE collar priced on this page is roughly $93.54 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 NEE market-implied 1-standard-deviation expected move is approximately 7.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on NEE?: Collars on NEE hedge an existing long NEE 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 NEE implied volatility affect this collar?: NEE ATM IV is at 24.82% with IV rank near 32.33%, 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.