How are PJT 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 PJT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.20%), the computed maximum profit is $689.50 per contract and the computed maximum loss is -$810.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PJT collar?

The breakeven for the PJT collar priced on this page is roughly $158.11 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 PJT market-implied 1-standard-deviation expected move is approximately 9.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PJT implied volatility affect this collar?

PJT ATM IV is at 33.20% with IV rank near 49.44%, 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.

PJT Collar Strategy

PJT (PJT Partners Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NYSE.

PJT Partners Inc., an investment bank, provides various strategic and capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments worldwide. It offers advisory services to clients on various transactions, including mergers and acquisitions (M&A), spin-offs, activism defense, contested M&A, joint ventures, minority investments, and divestitures. The company also advises private and public company boards and management teams on strategies for building productive investor relationships with a focus on shareholder engagement; and strategic investor relations; environmental, social, and governance matters; and other investor-related matters. In addition, it provides advisory services related to debt and acquisition financings; structured product offerings; public equity raises, including initial public offering and SPAC offerings; and private capital raises for early and later stage companies, as well as other capital structure related matters. Further, the company offers advisory services in restructurings and recapitalizations; and serving a range of companies, creditors, and financial sponsors on liability management and related capital raise transactions, including exchanges, recapitalizations, reorganizations, debt repurchases, and distressed mergers and acquisitions. Additionally, it provides private fund advisory and fundraising services for a range of investment strategies; and advisory services to GPs and LPs on liquidity and other structured solutions in the secondary market.

PJT (PJT Partners Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $4.00B, a trailing P/E of 21.76, a beta of 0.85 versus the broader market, a 52-week range of 127.73-195.62, average daily share volume of 375K, a public-listing history dating back to 2015, approximately 1K full-time employees. These structural characteristics shape how PJT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.85 places PJT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PJT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PJT?

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 PJT snapshot

As of May 15, 2026, spot at $158.03, ATM IV 33.20%, IV rank 49.44%, expected move 9.52%. The collar on PJT 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 34-day expiry.

Why this collar structure on PJT specifically: IV regime affects collar pricing on both sides; mid-range PJT IV at 33.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.52% (roughly $15.04 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PJT expiries trade a higher absolute premium for lower per-day decay. Position sizing on PJT should anchor to the underlying notional of $158.03 per share and to the trader's directional view on PJT stock.

PJT collar setup

The PJT 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 PJT near $158.03, the first option leg uses a $165.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PJT chain at a 34-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 PJT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$158.03	long
Sell 1	Call	$165.00	$3.30
Buy 1	Put	$150.00	$3.38

PJT collar risk and reward

Net Premium / Debit: -$15,810.50
Max Profit (per contract): $689.50
Max Loss (per contract): -$810.50
Breakeven(s): $158.11
Risk / Reward Ratio: 0.851

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.

PJT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PJT. 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%	-$810.50
$34.95	-77.9%	-$810.50
$69.89	-55.8%	-$810.50
$104.83	-33.7%	-$810.50
$139.77	-11.6%	-$810.50
$174.71	+10.6%	+$689.50
$209.65	+32.7%	+$689.50
$244.59	+54.8%	+$689.50
$279.53	+76.9%	+$689.50
$314.47	+99.0%	+$689.50

When traders use collar on PJT

Collars on PJT hedge an existing long PJT 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.

PJT thesis for this collar

The market-implied 1-standard-deviation range for PJT extends from approximately $142.99 on the downside to $173.07 on the upside. A PJT collar hedges an existing long PJT 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 PJT IV rank near 49.44% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PJT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, PJT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PJT-specific events.

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

Frequently asked questions

What is a collar on PJT?: A collar on PJT is the collar strategy applied to PJT (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 PJT stock trading near $158.03, the strikes shown on this page are snapped to the nearest listed PJT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PJT 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 PJT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.20%), the computed maximum profit is $689.50 per contract and the computed maximum loss is -$810.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PJT collar?: The breakeven for the PJT collar priced on this page is roughly $158.11 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 PJT market-implied 1-standard-deviation expected move is approximately 9.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PJT?: Collars on PJT hedge an existing long PJT 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 PJT implied volatility affect this collar?: PJT ATM IV is at 33.20% with IV rank near 49.44%, 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.