How are PHM 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 PHM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.67%), the computed maximum profit is $681.00 per contract and the computed maximum loss is -$619.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PHM collar?

The breakeven for the PHM collar priced on this page is roughly $130.19 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 PHM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PHM implied volatility affect this collar?

PHM ATM IV is at 32.67% with IV rank near 24.78%, 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.

PHM Collar Strategy

PHM (PulteGroup, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.

PulteGroup, Inc. engages in the homebuilding business. The firm is also involved in mortgage banking and title and insurance brokerage operations. It operates through the Homebuilding and Financial services business segments. The Homebuilding segment includes operations from Connecticut, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, Virginia, Georgia, North Carolina, South Carolina, Tennessee, Florida, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Ohio, Texas, Arizona, California, Nevada, New Mexico, and Washington. The Financial Services segment is composed of mortgage banking and title operations. The company was founded by William J.

PHM (PulteGroup, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $24.93B, a trailing P/E of 12.99, a beta of 1.20 versus the broader market, a 52-week range of 108.49-144.5, average daily share volume of 1.9M, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how PHM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.20 places PHM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PHM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PHM?

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.

PHM snapshot

As of August 14, 2026, spot at $130.19, ATM IV 32.67%, IV rank 24.78%, expected move 9.37%. The collar on PHM 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 PHM specifically: IV regime affects collar pricing on both sides; compressed PHM IV at 32.67% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.37% (roughly $12.19 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 PHM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PHM should anchor to the underlying notional of $130.19 per share and to the trader's directional view on PHM stock.

PHM collar setup

The PHM 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 PHM at $130.19 on that close, the first option leg uses a $137.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PHM 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 PHM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$130.19	long
Sell 1	Call	$137.00	$1.75
Buy 1	Put	$124.00	$1.75

PHM collar risk and reward

Net Premium / Debit: -$13,019.00
Max Profit (per contract): $681.00
Max Loss (per contract): -$619.00
Breakeven(s): $130.19
Risk / Reward Ratio: 1.100

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.

PHM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PHM. 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%	-$619.00
$28.79	-77.9%	-$619.00
$57.58	-55.8%	-$619.00
$86.36	-33.7%	-$619.00
$115.15	-11.6%	-$619.00
$143.93	+10.6%	+$681.00
$172.72	+32.7%	+$681.00
$201.50	+54.8%	+$681.00
$230.29	+76.9%	+$681.00
$259.07	+99.0%	+$681.00

When traders use collar on PHM

Collars on PHM hedge an existing long PHM 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.

PHM thesis for this collar

The market-implied 1-standard-deviation range for PHM extends from approximately $118.00 on the downside to $142.38 on the upside. A PHM collar hedges an existing long PHM 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 PHM IV rank near 24.78% 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 PHM at 32.67%. As a Consumer Cyclical name, PHM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PHM-specific events.

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

Frequently asked questions

What is a collar on PHM?: A collar on PHM is the collar strategy applied to PHM (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 PHM stock at $130.19 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PHM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PHM 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 PHM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.67%), the computed maximum profit is $681.00 per contract and the computed maximum loss is -$619.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PHM collar?: The breakeven for the PHM collar priced on this page is roughly $130.19 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 PHM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PHM?: Collars on PHM hedge an existing long PHM 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 PHM implied volatility affect this collar?: PHM ATM IV is at 32.67% with IV rank near 24.78%, 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.