How are OI 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 OI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 57.50%), the computed maximum profit is $57.50 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OI collar?

The breakeven for the OI collar priced on this page is roughly $9.42 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 OI market-implied 1-standard-deviation expected move is approximately 16.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OI implied volatility affect this collar?

OI ATM IV is at 57.50% with IV rank near 68.78%, 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.

OI Collar Strategy

OI (O-I Glass, Inc.), in the Consumer Cyclical sector, (Packaging & Containers industry), listed on NYSE.

O-I Glass, Inc., through its various subsidiaries, is dedicated to the manufacturing and global distribution of glass packaging. The company primarily furnishes glass containers to businesses in the food and beverage industries across the Americas, Europe, and the Asia Pacific regions. Their product offerings encompass glass bottles and jars specifically designed for alcoholic beverages, such as beer, spirits, wine, and flavored malt beverages. Additionally, they provide glass packaging solutions for a range of other products, including various food items, soft drinks, teas, juices, and pharmaceutical goods. O-I Glass ensures a comprehensive selection of glass containers, available in diverse sizes, unique shapes, and a wide spectrum of colors to meet client specifications. The company facilitates sales directly to its customers, often secured through multi-year supply contracts, and also leverages a network of distributors.

OI (O-I Glass, Inc.) trades in the Consumer Cyclical sector, specifically Packaging & Containers, with a market capitalization of approximately $1.49B, a beta of 0.65 versus the broader market, a 52-week range of 7.75-16.91, average daily share volume of 2.8M, a public-listing history dating back to 1991, approximately 21K full-time employees. These structural characteristics shape how OI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates OI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on OI?

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 OI snapshot

As of June 30, 2026, spot at $9.65, ATM IV 57.50%, IV rank 68.78%, expected move 16.48%. The collar on OI 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 52-day expiry.

Why this collar structure on OI specifically: IV regime affects collar pricing on both sides; mid-range OI IV at 57.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.48% (roughly $1.59 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OI should anchor to the underlying notional of $9.65 per share and to the trader's directional view on OI stock.

OI collar setup

The OI 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 OI near $9.65, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OI chain at a 52-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 OI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$9.65	long
Sell 1	Call	$10.00	$0.80
Buy 1	Put	$9.00	$0.58

OI collar risk and reward

Net Premium / Debit: -$942.50
Max Profit (per contract): $57.50
Max Loss (per contract): -$42.50
Breakeven(s): $9.42
Risk / Reward Ratio: 1.353

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.

OI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on OI. 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	-99.9%	-$42.50
$2.14	-77.8%	-$42.50
$4.28	-55.7%	-$42.50
$6.41	-33.6%	-$42.50
$8.54	-11.5%	-$42.50
$10.67	+10.6%	+$57.50
$12.81	+32.7%	+$57.50
$14.94	+54.8%	+$57.50
$17.07	+76.9%	+$57.50
$19.20	+99.0%	+$57.50

When traders use collar on OI

Collars on OI hedge an existing long OI 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.

OI thesis for this collar

The market-implied 1-standard-deviation range for OI extends from approximately $8.06 on the downside to $11.24 on the upside. A OI collar hedges an existing long OI 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 OI IV rank near 68.78% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on OI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, OI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OI-specific events.

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

Frequently asked questions

What is a collar on OI?: A collar on OI is the collar strategy applied to OI (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 OI stock trading near $9.65, the strikes shown on this page are snapped to the nearest listed OI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OI 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 OI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 57.50%), the computed maximum profit is $57.50 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OI collar?: The breakeven for the OI collar priced on this page is roughly $9.42 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 OI market-implied 1-standard-deviation expected move is approximately 16.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on OI?: Collars on OI hedge an existing long OI 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 OI implied volatility affect this collar?: OI ATM IV is at 57.50% with IV rank near 68.78%, 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.