How are NGVT 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 NGVT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $219.00 per contract and the computed maximum loss is -$281.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NGVT collar?

The breakeven for the NGVT collar priced on this page is roughly $67.81 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 NGVT market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NGVT implied volatility affect this collar?

NGVT ATM IV is at 38.90% with IV rank near 3.17%, 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.

NGVT Collar Strategy

NGVT (Ingevity Corporation), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.

Ingevity Corporation manufactures and sells specialty chemicals and activated carbon materials in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. The company operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment comprises of pavement technologies, industrial specialties, and engineered polymers. It manufactures products derived from crude tall oil and lignin extracted from the kraft pulping process, as well as caprolactone monomers and derivatives derived from cyclohexanone and hydrogen peroxide.

NGVT (Ingevity Corporation) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $2.48B, a beta of 1.24 versus the broader market, a 52-week range of 39.74-79.29, average daily share volume of 324K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how NGVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.24 places NGVT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on NGVT?

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 NGVT snapshot

As of May 15, 2026, spot at $67.81, ATM IV 38.90%, IV rank 3.17%, expected move 11.15%. The collar on NGVT 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 63-day expiry.

Why this collar structure on NGVT specifically: IV regime affects collar pricing on both sides; compressed NGVT IV at 38.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.15% (roughly $7.56 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NGVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NGVT should anchor to the underlying notional of $67.81 per share and to the trader's directional view on NGVT stock.

NGVT collar setup

The NGVT 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 NGVT near $67.81, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NGVT chain at a 63-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 NGVT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$67.81	long
Sell 1	Call	$70.00	$2.55
Buy 1	Put	$65.00	$2.55

NGVT collar risk and reward

Net Premium / Debit: -$6,781.00
Max Profit (per contract): $219.00
Max Loss (per contract): -$281.00
Breakeven(s): $67.81
Risk / Reward Ratio: 0.779

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.

NGVT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on NGVT. 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%	-$281.00
$15.00	-77.9%	-$281.00
$29.99	-55.8%	-$281.00
$44.99	-33.7%	-$281.00
$59.98	-11.5%	-$281.00
$74.97	+10.6%	+$219.00
$89.96	+32.7%	+$219.00
$104.95	+54.8%	+$219.00
$119.95	+76.9%	+$219.00
$134.94	+99.0%	+$219.00

When traders use collar on NGVT

Collars on NGVT hedge an existing long NGVT 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.

NGVT thesis for this collar

The market-implied 1-standard-deviation range for NGVT extends from approximately $60.25 on the downside to $75.37 on the upside. A NGVT collar hedges an existing long NGVT 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 NGVT IV rank near 3.17% 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 NGVT at 38.90%. As a Basic Materials name, NGVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NGVT-specific events.

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

Frequently asked questions

What is a collar on NGVT?: A collar on NGVT is the collar strategy applied to NGVT (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 NGVT stock trading near $67.81, the strikes shown on this page are snapped to the nearest listed NGVT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NGVT 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 NGVT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $219.00 per contract and the computed maximum loss is -$281.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NGVT collar?: The breakeven for the NGVT collar priced on this page is roughly $67.81 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 NGVT market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on NGVT?: Collars on NGVT hedge an existing long NGVT 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 NGVT implied volatility affect this collar?: NGVT ATM IV is at 38.90% with IV rank near 3.17%, 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.