How are OMF 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 OMF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.60%), the computed maximum profit is $223.50 per contract and the computed maximum loss is -$276.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OMF collar?

The breakeven for the OMF collar priced on this page is roughly $52.77 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 OMF market-implied 1-standard-deviation expected move is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OMF implied volatility affect this collar?

OMF ATM IV is at 29.60% with IV rank near 3.53%, 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.

OMF Collar Strategy

OMF (OneMain Holdings, Inc.), in the Financial Services sector, (Financial - Credit Services industry), listed on NYSE.

OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, or unsecured. The company also offers credit cards and insurance products comprising life, disability, and involuntary unemployment insurance; optional non-credit insurance; guaranteed asset protection coverage as a waiver product or insurance; and membership plans. It operates through a network of approximately 1,400 branch offices in 44 states in the United States, as well as through its website onemainfinancial.com. The company was formerly known as Springleaf Holdings, Inc. and changed its name to OneMain Holdings, Inc. in November 2015. OneMain Holdings, Inc. was founded in 1912 and is based in Evansville, Indiana.

OMF (OneMain Holdings, Inc.) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $6.06B, a trailing P/E of 7.69, a beta of 1.25 versus the broader market, a 52-week range of 45.78-71.93, average daily share volume of 1.5M, a public-listing history dating back to 2013, approximately 9K full-time employees. These structural characteristics shape how OMF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.25 places OMF roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.69 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. OMF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on OMF?

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 OMF snapshot

As of May 15, 2026, spot at $53.34, ATM IV 29.60%, IV rank 3.53%, expected move 8.49%. The collar on OMF 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 98-day expiry.

Why this collar structure on OMF specifically: IV regime affects collar pricing on both sides; compressed OMF IV at 29.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.49% (roughly $4.53 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OMF expiries trade a higher absolute premium for lower per-day decay. Position sizing on OMF should anchor to the underlying notional of $53.34 per share and to the trader's directional view on OMF stock.

OMF collar setup

The OMF 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 OMF near $53.34, the first option leg uses a $55.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OMF chain at a 98-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 OMF shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$53.34	long
Sell 1	Call	$55.00	$2.85
Buy 1	Put	$50.00	$2.28

OMF collar risk and reward

Net Premium / Debit: -$5,276.50
Max Profit (per contract): $223.50
Max Loss (per contract): -$276.50
Breakeven(s): $52.77
Risk / Reward Ratio: 0.808

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.

OMF collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on OMF. 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%	-$276.50
$11.80	-77.9%	-$276.50
$23.60	-55.8%	-$276.50
$35.39	-33.7%	-$276.50
$47.18	-11.5%	-$276.50
$58.97	+10.6%	+$223.50
$70.77	+32.7%	+$223.50
$82.56	+54.8%	+$223.50
$94.35	+76.9%	+$223.50
$106.14	+99.0%	+$223.50

When traders use collar on OMF

Collars on OMF hedge an existing long OMF 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.

OMF thesis for this collar

The market-implied 1-standard-deviation range for OMF extends from approximately $48.81 on the downside to $57.87 on the upside. A OMF collar hedges an existing long OMF 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 OMF IV rank near 3.53% 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 OMF at 29.60%. As a Financial Services name, OMF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OMF-specific events.

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

Frequently asked questions

What is a collar on OMF?: A collar on OMF is the collar strategy applied to OMF (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 OMF stock trading near $53.34, the strikes shown on this page are snapped to the nearest listed OMF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OMF 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 OMF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.60%), the computed maximum profit is $223.50 per contract and the computed maximum loss is -$276.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OMF collar?: The breakeven for the OMF collar priced on this page is roughly $52.77 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 OMF market-implied 1-standard-deviation expected move is approximately 8.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on OMF?: Collars on OMF hedge an existing long OMF 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 OMF implied volatility affect this collar?: OMF ATM IV is at 29.60% with IV rank near 3.53%, 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.