How are PAR 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 PAR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.20%), the computed maximum profit is $44.00 per contract and the computed maximum loss is -$56.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PAR collar?

The breakeven for the PAR collar priced on this page is roughly $14.56 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 PAR market-implied 1-standard-deviation expected move is approximately 22.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PAR implied volatility affect this collar?

PAR ATM IV is at 78.20% with IV rank near 51.26%, 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.

PAR Collar Strategy

PAR (PAR Technology Corporation), in the Technology sector, (Software - Application industry), listed on NYSE.

PAR Technology Corporation, together with its subsidiaries, provides technology solutions to the restaurant and retail industries worldwide. The company operates in two segments, Restaurant/Retail and Government. The Restaurant/Retail segment offers point-of-sale (POS) technology solutions, including Brink POS, an open cloud solution that integrates with third party products and in-house systems; Punchh, an enterprise-grade customer loyalty and engagement solution for restaurant and convenience store brands; Data Central, a cloud software solution for back-office applications; PAR Payment Services, a merchant services offering; POS integrated solutions for wireless headsets for drive-thru order-taking; and the PAR Infinity, PAR Phase, PAR Helix, and the EverServ 8000 series platform. This segment also offers training, installation, technical support, and repair services. The Government segment provides intelligence, surveillance, and reconnaissance solutions; systems engineering support and software-based solutions; satellite and teleport facility operations and maintenance, engineering, and installation services; satellite control center; and information technology infrastructure library services to the Unites States Department of Defense and other federal agencies, as well as offers licensed software products. It offers products and services through its sales teams, channel partners, and resellers.

PAR (PAR Technology Corporation) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $584.5M, a beta of 1.32 versus the broader market, a 52-week range of 11.59-72.15, average daily share volume of 1.9M, a public-listing history dating back to 1982, approximately 2K full-time employees. These structural characteristics shape how PAR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.32 indicates PAR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on PAR?

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 PAR snapshot

As of May 15, 2026, spot at $14.66, ATM IV 78.20%, IV rank 51.26%, expected move 22.42%. The collar on PAR 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 63-day expiry.

Why this collar structure on PAR specifically: IV regime affects collar pricing on both sides; mid-range PAR IV at 78.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.42% (roughly $3.29 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 PAR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAR should anchor to the underlying notional of $14.66 per share and to the trader's directional view on PAR stock.

PAR collar setup

The PAR 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 PAR near $14.66, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAR 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 PAR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.66	long
Sell 1	Call	$15.00	$1.80
Buy 1	Put	$14.00	$1.70

PAR collar risk and reward

Net Premium / Debit: -$1,456.00
Max Profit (per contract): $44.00
Max Loss (per contract): -$56.00
Breakeven(s): $14.56
Risk / Reward Ratio: 0.786

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.

PAR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PAR. 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	-99.9%	-$56.00
$3.25	-77.8%	-$56.00
$6.49	-55.7%	-$56.00
$9.73	-33.6%	-$56.00
$12.97	-11.5%	-$56.00
$16.21	+10.6%	+$44.00
$19.45	+32.7%	+$44.00
$22.69	+54.8%	+$44.00
$25.93	+76.9%	+$44.00
$29.17	+99.0%	+$44.00

When traders use collar on PAR

Collars on PAR hedge an existing long PAR 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.

PAR thesis for this collar

The market-implied 1-standard-deviation range for PAR extends from approximately $11.37 on the downside to $17.95 on the upside. A PAR collar hedges an existing long PAR 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 PAR IV rank near 51.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PAR should anchor more to the directional view and the expected-move geometry. As a Technology name, PAR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAR-specific events.

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

Frequently asked questions

What is a collar on PAR?: A collar on PAR is the collar strategy applied to PAR (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 PAR stock trading near $14.66, the strikes shown on this page are snapped to the nearest listed PAR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PAR 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 PAR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.20%), the computed maximum profit is $44.00 per contract and the computed maximum loss is -$56.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PAR collar?: The breakeven for the PAR collar priced on this page is roughly $14.56 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 PAR market-implied 1-standard-deviation expected move is approximately 22.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PAR?: Collars on PAR hedge an existing long PAR 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 PAR implied volatility affect this collar?: PAR ATM IV is at 78.20% with IV rank near 51.26%, 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.