How are PII 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 PII collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $266.00 per contract and the computed maximum loss is -$234.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PII collar?

The breakeven for the PII collar priced on this page is roughly $67.34 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 PII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PII implied volatility affect this collar?

PII ATM IV is at 42.30% with IV rank near 40.23%, 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.

PII Collar Strategy

PII (Polaris Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Polaris Inc. is a global enterprise specializing in the design, engineering, production, and distribution of powersports vehicles. Its business is structured across three primary segments: Off-Road, On-Road, and Marine. The company's off-road lineup features all-terrain vehicles (ATVs), side-by-side utility vehicles, snowmobiles, and innovative snow bike conversion systems. This segment also produces low-emission, light-duty transport, passenger, and industrial vehicles. For paved roads, Polaris offers a selection of motorcycles, quadricycles, and moto-roadsters. Beyond the vehicles themselves, Polaris provides an extensive array of complementary accessories.

PII (Polaris Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $3.90B, a beta of 1.27 versus the broader market, a 52-week range of 47.14-77.98, average daily share volume of 1.1M, a public-listing history dating back to 1987, approximately 15K full-time employees. These structural characteristics shape how PII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.27 places PII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PII?

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.

PII snapshot

As of August 14, 2026, spot at $68.84, ATM IV 42.30%, IV rank 40.23%, expected move 12.13%. The collar on PII 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 154-day expiry.

Why this collar structure on PII specifically: IV regime affects collar pricing on both sides; mid-range PII IV at 42.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.13% (roughly $8.35 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PII expiries trade a higher absolute premium for lower per-day decay. Position sizing on PII should anchor to the underlying notional of $68.84 per share and to the trader's directional view on PII stock.

PII collar setup

The PII 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 PII at $68.84 on that close, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PII chain at a 154-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 PII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$68.84	long
Sell 1	Call	$70.00	$8.20
Buy 1	Put	$65.00	$6.70

PII collar risk and reward

Net Premium / Debit: -$6,734.00
Max Profit (per contract): $266.00
Max Loss (per contract): -$234.00
Breakeven(s): $67.34
Risk / Reward Ratio: 1.137

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.

PII collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PII. 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%	-$234.00
$15.23	-77.9%	-$234.00
$30.45	-55.8%	-$234.00
$45.67	-33.7%	-$234.00
$60.89	-11.5%	-$234.00
$76.11	+10.6%	+$266.00
$91.33	+32.7%	+$266.00
$106.55	+54.8%	+$266.00
$121.77	+76.9%	+$266.00
$136.99	+99.0%	+$266.00

When traders use collar on PII

Collars on PII hedge an existing long PII 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.

PII thesis for this collar

The market-implied 1-standard-deviation range for PII extends from approximately $60.49 on the downside to $77.19 on the upside. A PII collar hedges an existing long PII 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 PII IV rank near 40.23% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PII should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, PII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PII-specific events.

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

Frequently asked questions

What is a collar on PII?: A collar on PII is the collar strategy applied to PII (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 PII stock at $68.84 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PII chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PII 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 PII collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $266.00 per contract and the computed maximum loss is -$234.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PII collar?: The breakeven for the PII collar priced on this page is roughly $67.34 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 PII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PII?: Collars on PII hedge an existing long PII 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 PII implied volatility affect this collar?: PII ATM IV is at 42.30% with IV rank near 40.23%, 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.