How are OPCH 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 OPCH collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.50%), the computed maximum profit is $122.00 per contract and the computed maximum loss is -$128.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OPCH collar?

The breakeven for the OPCH collar priced on this page is roughly $23.78 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 OPCH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OPCH implied volatility affect this collar?

OPCH ATM IV is at 33.50% with IV rank near 9.03%, 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.

OPCH Collar Strategy

OPCH (Option Care Health, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NASDAQ.

Option Care Health, Inc. delivers infusion services to patients in their homes and other non-hospital settings throughout the United States. The company offers a broad spectrum of specialized infusion treatments, including therapies for various infections, management of heart failure, and comprehensive nutritional support (both intravenous and tube feeding) for individuals with acute or chronic conditions such as stroke, cancer, and digestive illnesses. They also provide immunoglobulin infusions for immune system deficiencies and treatments targeting chronic inflammatory disorders like Crohn's disease, plaque psoriasis, psoriatic arthritis, rheumatoid arthritis, and ulcerative colitis. Furthermore, Option Care Health assists in managing the progression of neurological conditions such as amyotrophic lateral sclerosis (ALS) and Duchenne muscular dystrophy. They also administer infusion therapies for bleeding disorders and provide crucial support for women experiencing high-risk pregnancies. Other specialized infusion services encompass pain relief, chemotherapy, and respiratory care.

OPCH (Option Care Health, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $3.57B, a trailing P/E of 17.61, a beta of 0.61 versus the broader market, a 52-week range of 18.01-36.8, average daily share volume of 3.1M, a public-listing history dating back to 1996, approximately 7K full-time employees. These structural characteristics shape how OPCH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.61 indicates OPCH 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 OPCH?

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.

OPCH snapshot

As of August 14, 2026, spot at $24.03, ATM IV 33.50%, IV rank 9.03%, expected move 9.60%. The collar on OPCH 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 63-day expiry.

Why this collar structure on OPCH specifically: IV regime affects collar pricing on both sides; compressed OPCH IV at 33.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.60% (roughly $2.31 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 OPCH expiries trade a higher absolute premium for lower per-day decay. Position sizing on OPCH should anchor to the underlying notional of $24.03 per share and to the trader's directional view on OPCH stock.

OPCH collar setup

The OPCH 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 OPCH at $24.03 on that close, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OPCH 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 OPCH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$24.03	long
Sell 1	Call	$25.00	$0.90
Buy 1	Put	$22.50	$0.65

OPCH collar risk and reward

Net Premium / Debit: -$2,378.00
Max Profit (per contract): $122.00
Max Loss (per contract): -$128.00
Breakeven(s): $23.78
Risk / Reward Ratio: 0.953

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.

OPCH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on OPCH. 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%	-$128.00
$5.32	-77.9%	-$128.00
$10.63	-55.7%	-$128.00
$15.95	-33.6%	-$128.00
$21.26	-11.5%	-$128.00
$26.57	+10.6%	+$122.00
$31.88	+32.7%	+$122.00
$37.19	+54.8%	+$122.00
$42.51	+76.9%	+$122.00
$47.82	+99.0%	+$122.00

When traders use collar on OPCH

Collars on OPCH hedge an existing long OPCH 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.

OPCH thesis for this collar

The market-implied 1-standard-deviation range for OPCH extends from approximately $21.72 on the downside to $26.34 on the upside. A OPCH collar hedges an existing long OPCH 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 OPCH IV rank near 9.03% 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 OPCH at 33.50%. As a Healthcare name, OPCH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OPCH-specific events.

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

Frequently asked questions

What is a collar on OPCH?: A collar on OPCH is the collar strategy applied to OPCH (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 OPCH stock at $24.03 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed OPCH chain strike and the premiums come straight from that session's bid/ask midpoint.
How are OPCH 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 OPCH collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.50%), the computed maximum profit is $122.00 per contract and the computed maximum loss is -$128.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OPCH collar?: The breakeven for the OPCH collar priced on this page is roughly $23.78 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 OPCH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on OPCH?: Collars on OPCH hedge an existing long OPCH 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 OPCH implied volatility affect this collar?: OPCH ATM IV is at 33.50% with IV rank near 9.03%, 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.