How are PLD 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 PLD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $474.50 per contract and the computed maximum loss is -$525.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PLD collar?

The breakeven for the PLD collar priced on this page is roughly $135.26 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 PLD market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PLD implied volatility affect this collar?

PLD ATM IV is at 28.30% with IV rank near 30.34%, 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.

PLD Collar Strategy

PLD (Prologis, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.

Prologis, Inc. is the undisputed global leader in logistics real estate, strategically focusing its operations on high-barrier, high-growth markets. As of December 31, 2020, the company's extensive portfolio spanned approximately 984 million square feet (91 million square meters) of both existing properties and planned development projects, located across 19 countries. This significant footprint is managed through a blend of wholly-owned assets and co-investment ventures. Prologis leases its contemporary logistics facilities to a diverse client base of roughly 5,500 customers, primarily serving business-to-business (B2B) and retail/online fulfillment needs.

PLD (Prologis, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $130.50B, a trailing P/E of 35.07, a beta of 1.33 versus the broader market, a 52-week range of 103.41-150.18, average daily share volume of 3.6M, a public-listing history dating back to 1997, approximately 3K full-time employees. These structural characteristics shape how PLD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.33 indicates PLD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 35.07 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. PLD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PLD?

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 PLD snapshot

As of June 30, 2026, spot at $135.58, ATM IV 28.30%, IV rank 30.34%, expected move 8.11%. The collar on PLD 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 17-day expiry.

Why this collar structure on PLD specifically: IV regime affects collar pricing on both sides; mid-range PLD IV at 28.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.11% (roughly $11.00 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PLD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PLD should anchor to the underlying notional of $135.58 per share and to the trader's directional view on PLD stock.

PLD collar setup

The PLD 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 PLD near $135.58, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PLD chain at a 17-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 PLD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$135.58	long
Sell 1	Call	$140.00	$1.55
Buy 1	Put	$130.00	$1.23

PLD collar risk and reward

Net Premium / Debit: -$13,525.50
Max Profit (per contract): $474.50
Max Loss (per contract): -$525.50
Breakeven(s): $135.26
Risk / Reward Ratio: 0.903

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.

PLD collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PLD. 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%	-$525.50
$29.99	-77.9%	-$525.50
$59.96	-55.8%	-$525.50
$89.94	-33.7%	-$525.50
$119.92	-11.6%	-$525.50
$149.89	+10.6%	+$474.50
$179.87	+32.7%	+$474.50
$209.84	+54.8%	+$474.50
$239.82	+76.9%	+$474.50
$269.80	+99.0%	+$474.50

When traders use collar on PLD

Collars on PLD hedge an existing long PLD 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.

PLD thesis for this collar

The market-implied 1-standard-deviation range for PLD extends from approximately $124.58 on the downside to $146.58 on the upside. A PLD collar hedges an existing long PLD 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 PLD IV rank near 30.34% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PLD should anchor more to the directional view and the expected-move geometry. As a Real Estate name, PLD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PLD-specific events.

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

Frequently asked questions

What is a collar on PLD?: A collar on PLD is the collar strategy applied to PLD (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 PLD stock trading near $135.58, the strikes shown on this page are snapped to the nearest listed PLD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PLD 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 PLD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), the computed maximum profit is $474.50 per contract and the computed maximum loss is -$525.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PLD collar?: The breakeven for the PLD collar priced on this page is roughly $135.26 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 PLD market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PLD?: Collars on PLD hedge an existing long PLD 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 PLD implied volatility affect this collar?: PLD ATM IV is at 28.30% with IV rank near 30.34%, 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.