How are PCG 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 PCG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.81%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$64.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PCG collar?

The breakeven for the PCG collar priced on this page is roughly $17.65 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 PCG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PCG implied volatility affect this collar?

PCG ATM IV is at 52.81% with IV rank near 72.07%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

PCG Collar Strategy

PCG (PG&E Corporation), in the Utilities sector, (Regulated Electric industry), listed on NYSE.

PG&E Corporation operates as a holding company, overseeing the generation, transmission, and distribution of electricity and natural gas to its clientele. The firm's expertise spans a broad range of energy-related services, including general utilities, power provision, gas supply, electrical grids, solar solutions, and sustainability initiatives. Established in 1995, the company maintains its corporate headquarters in Oakland, California.

PCG (PG&E Corporation) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $46.58B, a trailing P/E of 12.09, a beta of 0.28 versus the broader market, a 52-week range of 14.3-19.16, average daily share volume of 20.7M, a public-listing history dating back to 1972, approximately 29K full-time employees. These structural characteristics shape how PCG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.28 indicates PCG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PCG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PCG?

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.

PCG snapshot

As of August 14, 2026, spot at $17.80, ATM IV 52.81%, IV rank 72.07%, expected move 15.14%. The collar on PCG 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 28-day expiry.

Why this collar structure on PCG specifically: IV regime affects collar pricing on both sides; elevated PCG IV at 52.81% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.14% (roughly $2.70 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 PCG expiries trade a higher absolute premium for lower per-day decay. Position sizing on PCG should anchor to the underlying notional of $17.80 per share and to the trader's directional view on PCG stock.

PCG collar setup

The PCG 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 PCG at $17.80 on that close, the first option leg uses a $18.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PCG 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 PCG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$17.80	long
Sell 1	Call	$18.50	$0.80
Buy 1	Put	$17.00	$0.64

PCG collar risk and reward

Net Premium / Debit: -$1,764.50
Max Profit (per contract): $85.50
Max Loss (per contract): -$64.50
Breakeven(s): $17.65
Risk / Reward Ratio: 1.326

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.

PCG collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PCG. 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%	-$64.50
$3.94	-77.8%	-$64.50
$7.88	-55.7%	-$64.50
$11.81	-33.6%	-$64.50
$15.75	-11.5%	-$64.50
$19.68	+10.6%	+$85.50
$23.62	+32.7%	+$85.50
$27.55	+54.8%	+$85.50
$31.49	+76.9%	+$85.50
$35.42	+99.0%	+$85.50

When traders use collar on PCG

Collars on PCG hedge an existing long PCG 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.

PCG thesis for this collar

The market-implied 1-standard-deviation range for PCG extends from approximately $15.10 on the downside to $20.50 on the upside. A PCG collar hedges an existing long PCG 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 PCG IV rank near 72.07% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PCG at 52.81%. As a Utilities name, PCG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PCG-specific events.

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

Frequently asked questions

What is a collar on PCG?: A collar on PCG is the collar strategy applied to PCG (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 PCG stock at $17.80 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PCG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PCG 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 PCG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 52.81%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$64.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PCG collar?: The breakeven for the PCG collar priced on this page is roughly $17.65 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 PCG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PCG?: Collars on PCG hedge an existing long PCG 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 PCG implied volatility affect this collar?: PCG ATM IV is at 52.81% with IV rank near 72.07%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.