How are PNR 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 PNR collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.30%), the computed maximum profit is $435.50 per contract and the computed maximum loss is -$314.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PNR collar?

The breakeven for the PNR collar priced on this page is roughly $65.65 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 PNR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PNR implied volatility affect this collar?

PNR ATM IV is at 32.30% with IV rank near 55.57%, 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.

PNR Collar Strategy

PNR (Pentair plc), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Pentair plc engages in the provision of water solutions for residential, commercial, industrial, infrastructure, and agricultural applications. It operates through the following segments: Flow, Water Solutions, and Pool. The Flow segment designs, manufactures, and sells various fluid treatment and pump products and systems, including pressure vessels, gas recovery solutions, membrane bioreactors, wastewater reuse systems and advanced membrane filtration, separation systems, water disposal pumps, water supply pumps, fluid transfer pumps, turbine pumps, solid handling pumps, and agricultural spray nozzles, while serving the global residential, commercial, and industrial markets. The Water Solutions segment covers commercial and residential water treatment products and systems, including pressure tanks, control valves, activated carbon products, commercial ice machines, conventional filtration products, and point-of-entry and point-of-use water treatment systems. The Pool segment refers to a line of energy-efficient residential and commercial pool equipment and accessories, including pumps, filters, heaters, lights, automatic controls, automatic cleaners, maintenance equipment, and pool accessories. The company was founded by Murray J.

PNR (Pentair plc) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $10.50B, a trailing P/E of 16.33, a beta of 1.03 versus the broader market, a 52-week range of 57.6-113.95, average daily share volume of 2.5M, a public-listing history dating back to 1973, approximately 9K full-time employees. These structural characteristics shape how PNR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.03 places PNR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PNR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PNR?

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.

PNR snapshot

As of August 14, 2026, spot at $66.07, ATM IV 32.30%, IV rank 55.57%, expected move 9.26%. The collar on PNR 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 35-day expiry.

Why this collar structure on PNR specifically: IV regime affects collar pricing on both sides; mid-range PNR IV at 32.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.26% (roughly $6.12 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PNR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PNR should anchor to the underlying notional of $66.07 per share and to the trader's directional view on PNR stock.

PNR collar setup

The PNR 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 PNR at $66.07 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 PNR chain at a 35-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 PNR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$66.07	long
Sell 1	Call	$70.00	$1.55
Buy 1	Put	$62.50	$1.13

PNR collar risk and reward

Net Premium / Debit: -$6,564.50
Max Profit (per contract): $435.50
Max Loss (per contract): -$314.50
Breakeven(s): $65.65
Risk / Reward Ratio: 1.385

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.

PNR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PNR. 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%	-$314.50
$14.62	-77.9%	-$314.50
$29.22	-55.8%	-$314.50
$43.83	-33.7%	-$314.50
$58.44	-11.5%	-$314.50
$73.05	+10.6%	+$435.50
$87.65	+32.7%	+$435.50
$102.26	+54.8%	+$435.50
$116.87	+76.9%	+$435.50
$131.48	+99.0%	+$435.50

When traders use collar on PNR

Collars on PNR hedge an existing long PNR 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.

PNR thesis for this collar

The market-implied 1-standard-deviation range for PNR extends from approximately $59.95 on the downside to $72.19 on the upside. A PNR collar hedges an existing long PNR 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 PNR IV rank near 55.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PNR should anchor more to the directional view and the expected-move geometry. As a Industrials name, PNR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PNR-specific events.

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

Frequently asked questions

What is a collar on PNR?: A collar on PNR is the collar strategy applied to PNR (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 PNR stock at $66.07 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PNR chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PNR 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 PNR collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 32.30%), the computed maximum profit is $435.50 per contract and the computed maximum loss is -$314.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PNR collar?: The breakeven for the PNR collar priced on this page is roughly $65.65 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 PNR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PNR?: Collars on PNR hedge an existing long PNR 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 PNR implied volatility affect this collar?: PNR ATM IV is at 32.30% with IV rank near 55.57%, 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.