How are OXY 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 OXY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.11%), the computed maximum profit is $294.50 per contract and the computed maximum loss is -$305.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a OXY collar?

The breakeven for the OXY collar priced on this page is roughly $59.06 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 OXY market-implied 1-standard-deviation expected move is approximately 10.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current OXY implied volatility affect this collar?

OXY ATM IV is at 38.11% with IV rank near 58.56%, 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.

OXY Collar Strategy

OXY (Occidental Petroleum Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States, the Middle East, Africa, and Latin America. It operates through three segments: Oil and Gas, Chemical, and Midstream and Marketing. The company's Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. Its Chemical segment manufactures and markets basic chemicals, including chlorine, caustic soda, chlorinated organics, potassium chemicals, ethylene dichloride, chlorinated isocyanurates, sodium silicates, and calcium chloride; vinyls comprising vinyl chloride monomer, polyvinyl chloride, and ethylene. The Midstream and Marketing segment gathers, processes, transports, stores, purchases, and markets oil, condensate, NGLs, natural gas, carbon dioxide, and power. This segment also trades around its assets consisting of transportation and storage capacity; and invests in entities.

OXY (Occidental Petroleum Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $55.88B, a trailing P/E of 11.64, a beta of 0.17 versus the broader market, a 52-week range of 38.8-67.45, average daily share volume of 17.5M, a public-listing history dating back to 1981, approximately 10K full-time employees. These structural characteristics shape how OXY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.17 indicates OXY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.64 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. OXY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on OXY?

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 OXY snapshot

As of May 15, 2026, spot at $59.36, ATM IV 38.11%, IV rank 58.56%, expected move 10.93%. The collar on OXY 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 28-day expiry.

Why this collar structure on OXY specifically: IV regime affects collar pricing on both sides; mid-range OXY IV at 38.11% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.93% (roughly $6.49 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OXY expiries trade a higher absolute premium for lower per-day decay. Position sizing on OXY should anchor to the underlying notional of $59.36 per share and to the trader's directional view on OXY stock.

OXY collar setup

The OXY 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 OXY near $59.36, the first option leg uses a $62.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OXY chain at a 28-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 OXY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$59.36	long
Sell 1	Call	$62.00	$1.40
Buy 1	Put	$56.00	$1.10

OXY collar risk and reward

Net Premium / Debit: -$5,905.50
Max Profit (per contract): $294.50
Max Loss (per contract): -$305.50
Breakeven(s): $59.06
Risk / Reward Ratio: 0.964

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.

OXY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on OXY. 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%	-$305.50
$13.13	-77.9%	-$305.50
$26.26	-55.8%	-$305.50
$39.38	-33.7%	-$305.50
$52.50	-11.5%	-$305.50
$65.63	+10.6%	+$294.50
$78.75	+32.7%	+$294.50
$91.88	+54.8%	+$294.50
$105.00	+76.9%	+$294.50
$118.12	+99.0%	+$294.50

When traders use collar on OXY

Collars on OXY hedge an existing long OXY 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.

OXY thesis for this collar

The market-implied 1-standard-deviation range for OXY extends from approximately $52.87 on the downside to $65.85 on the upside. A OXY collar hedges an existing long OXY 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 OXY IV rank near 58.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on OXY should anchor more to the directional view and the expected-move geometry. As a Energy name, OXY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OXY-specific events.

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

Frequently asked questions

What is a collar on OXY?: A collar on OXY is the collar strategy applied to OXY (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 OXY stock trading near $59.36, the strikes shown on this page are snapped to the nearest listed OXY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are OXY 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 OXY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.11%), the computed maximum profit is $294.50 per contract and the computed maximum loss is -$305.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a OXY collar?: The breakeven for the OXY collar priced on this page is roughly $59.06 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 OXY market-implied 1-standard-deviation expected move is approximately 10.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on OXY?: Collars on OXY hedge an existing long OXY 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 OXY implied volatility affect this collar?: OXY ATM IV is at 38.11% with IV rank near 58.56%, 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.