How are NNI 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 NNI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.90%), the computed maximum profit is $607.50 per contract and the computed maximum loss is -$892.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NNI collar?

The breakeven for the NNI collar priced on this page is roughly $128.93 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 NNI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NNI implied volatility affect this collar?

NNI ATM IV is at 24.90% with IV rank near 2.97%, 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.

NNI Collar Strategy

NNI (Nelnet, Inc.), in the Financial Services sector, (Financial - Credit Services industry), listed on NYSE.

Nelnet, Inc. operates globally, encompassing a variety of businesses including loan management, telecommunications, educational technology, related services, and payment processing solutions. Its Loan Servicing and Systems division offers comprehensive support for loan operations. This includes converting and processing loan applications, managing borrower data, providing customer service, handling payments, executing due diligence, reconciling funds, and processing claims. The segment also develops specialized software for student loan servicing and delivers business process outsourcing, with a focus on contact center management through inbound calls, outreach campaigns, sales, and multi-channel customer engagement. The Education Technology, Services, and Payment Processing segment provides an extensive array of solutions. These span financial management services, school information system software, website design, and cost-effective admissions software.

NNI (Nelnet, Inc.) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $4.54B, a trailing P/E of 15.07, a beta of 0.78 versus the broader market, a 52-week range of 116.62-144.38, average daily share volume of 135K, a public-listing history dating back to 2003, approximately 6K full-time employees. These structural characteristics shape how NNI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.78 places NNI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NNI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on NNI?

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.

NNI snapshot

As of August 14, 2026, spot at $127.44, ATM IV 24.90%, IV rank 2.97%, expected move 7.14%. The collar on NNI 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 35-day expiry.

Why this collar structure on NNI specifically: IV regime affects collar pricing on both sides; compressed NNI IV at 24.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.14% (roughly $9.10 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NNI expiries trade a higher absolute premium for lower per-day decay. Position sizing on NNI should anchor to the underlying notional of $127.44 per share and to the trader's directional view on NNI stock.

NNI collar setup

The NNI 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 NNI at $127.44 on that close, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NNI chain at a 35-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 NNI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$127.44	long
Sell 1	Call	$135.00	$1.04
Buy 1	Put	$120.00	$2.53

NNI collar risk and reward

Net Premium / Debit: -$12,892.50
Max Profit (per contract): $607.50
Max Loss (per contract): -$892.50
Breakeven(s): $128.93
Risk / Reward Ratio: 0.681

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.

NNI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on NNI. 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%	-$892.50
$28.19	-77.9%	-$892.50
$56.36	-55.8%	-$892.50
$84.54	-33.7%	-$892.50
$112.72	-11.6%	-$892.50
$140.89	+10.6%	+$607.50
$169.07	+32.7%	+$607.50
$197.25	+54.8%	+$607.50
$225.42	+76.9%	+$607.50
$253.60	+99.0%	+$607.50

When traders use collar on NNI

Collars on NNI hedge an existing long NNI 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.

NNI thesis for this collar

The market-implied 1-standard-deviation range for NNI extends from approximately $118.34 on the downside to $136.54 on the upside. A NNI collar hedges an existing long NNI 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 NNI IV rank near 2.97% 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 NNI at 24.90%. As a Financial Services name, NNI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NNI-specific events.

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

Frequently asked questions

What is a collar on NNI?: A collar on NNI is the collar strategy applied to NNI (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 NNI stock at $127.44 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NNI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are NNI 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 NNI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.90%), the computed maximum profit is $607.50 per contract and the computed maximum loss is -$892.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NNI collar?: The breakeven for the NNI collar priced on this page is roughly $128.93 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 NNI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on NNI?: Collars on NNI hedge an existing long NNI 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 NNI implied volatility affect this collar?: NNI ATM IV is at 24.90% with IV rank near 2.97%, 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.