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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.87%), the computed maximum profit is $457.50 per contract and the computed maximum loss is -$442.50 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 $86.43 at expiration, derived from the August 14, 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 NEE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.70%; 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 19.87% with IV rank near 0.00%, 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.

NEE Collar Strategy

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

NextEra Energy, Inc., operating through its diverse subsidiaries, is a prominent electric power provider in North America. The company's operations encompass the generation, transmission, distribution, and sale of electricity to both individual consumers and large-scale wholesale clients. Its energy portfolio is broad, featuring power generation from wind, solar, nuclear, coal, and natural gas facilities. Beyond direct power supply, NextEra Energy is actively involved in developing, constructing, and managing long-term contracted clean energy infrastructure, including renewable energy generation sites, battery storage solutions, and electric transmission networks. The firm also participates in the sale of energy commodities and oversees the development, construction, and operation of generation assets within competitive wholesale energy markets. As of December 31, 2021, NextEra Energy boasted a net generating capacity of approximately 28,564 megawatts.

NEE (NextEra Energy, Inc.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $178.94B, a trailing P/E of 19.27, a beta of 0.65 versus the broader market, a 52-week range of 69.24-98.75, average daily share volume of 11.0M, 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 0.65 indicates NEE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. 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.

NEE snapshot

As of August 14, 2026, spot at $86.25, ATM IV 19.87%, IV rank 0.00%, expected move 5.70%. The collar on NEE below is built from the August 14, 2026 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; compressed NEE IV at 19.87% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.70% (roughly $4.91 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 $86.25 per share and to the trader's directional view on NEE stock.

NEE collar setup

The NEE collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NEE at $86.25 on that close, the first option leg uses a $91.00 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	$86.25	long
Sell 1	Call	$91.00	$0.37
Buy 1	Put	$82.00	$0.54

NEE collar risk and reward

Net Premium / Debit: -$8,642.50
Max Profit (per contract): $457.50
Max Loss (per contract): -$442.50
Breakeven(s): $86.43
Risk / Reward Ratio: 1.034

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.

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%	-$442.50
$19.08	-77.9%	-$442.50
$38.15	-55.8%	-$442.50
$57.22	-33.7%	-$442.50
$76.29	-11.6%	-$442.50
$95.36	+10.6%	+$457.50
$114.43	+32.7%	+$457.50
$133.49	+54.8%	+$457.50
$152.56	+76.9%	+$457.50
$171.63	+99.0%	+$457.50

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 $81.34 on the downside to $91.16 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 0.00% 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 NEE at 19.87%. 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 at $86.25 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NEE chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.87%), the computed maximum profit is $457.50 per contract and the computed maximum loss is -$442.50 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 $86.43 at expiration, derived from the August 14, 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 NEE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.70%; 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 19.87% with IV rank near 0.00%, 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.