How are POET 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 POET collar priced from the end-of-day chain at a 30-day expiry (ATM IV 191.64%), the computed maximum profit is $148.00 per contract and the computed maximum loss is -$52.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a POET collar?

The breakeven for the POET collar priced on this page is roughly $16.52 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 POET market-implied 1-standard-deviation expected move is approximately 54.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current POET implied volatility affect this collar?

POET ATM IV is at 191.64% with IV rank near 96.73%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

POET Collar Strategy

POET (POET Technologies Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

POET Technologies Inc. designs, develops, manufactures, and sells discrete and integrated opto-electronic solutions in Canada, the United States, and Singapore. It offers integration solutions based on the POET Optical Interposer, a novel platform that allows the seamless integration of electronic and photonic devices into a single multi-chip module using advanced wafer-level semiconductor manufacturing techniques and packaging methods. It also develops photonic integrated components. The company serves the data center, telecommunications, Internet of things and industrial sensing, automotive LIDAR, optical coherence tomography for medical devices, virtual reality systems markets. The company was formerly known as Opel Technologies Inc. and changed its name to POET Technologies Inc. in June 2013. POET Technologies Inc. was incorporated in 1972 and is headquartered in Toronto, Canada.

POET (POET Technologies Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.75B, a beta of 0.54 versus the broader market, a 52-week range of 3.87-15.5, average daily share volume of 26.8M, a public-listing history dating back to 2008, approximately 53 full-time employees. These structural characteristics shape how POET stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates POET has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on POET?

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 POET snapshot

As of May 15, 2026, spot at $16.73, ATM IV 191.64%, IV rank 96.73%, expected move 54.94%. The collar on POET 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 28-day expiry.

Why this collar structure on POET specifically: IV regime affects collar pricing on both sides; elevated POET IV at 191.64% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 54.94% (roughly $9.19 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 POET expiries trade a higher absolute premium for lower per-day decay. Position sizing on POET should anchor to the underlying notional of $16.73 per share and to the trader's directional view on POET stock.

POET collar setup

The POET 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 POET near $16.73, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed POET 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 POET shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$16.73	long
Sell 1	Call	$18.00	$3.20
Buy 1	Put	$16.00	$2.99

POET collar risk and reward

Net Premium / Debit: -$1,652.00
Max Profit (per contract): $148.00
Max Loss (per contract): -$52.00
Breakeven(s): $16.52
Risk / Reward Ratio: 2.846

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.

POET collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on POET. 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	-99.9%	-$52.00
$3.71	-77.8%	-$52.00
$7.41	-55.7%	-$52.00
$11.10	-33.6%	-$52.00
$14.80	-11.5%	-$52.00
$18.50	+10.6%	+$148.00
$22.20	+32.7%	+$148.00
$25.90	+54.8%	+$148.00
$29.59	+76.9%	+$148.00
$33.29	+99.0%	+$148.00

When traders use collar on POET

Collars on POET hedge an existing long POET 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.

POET thesis for this collar

The market-implied 1-standard-deviation range for POET extends from approximately $7.54 on the downside to $25.92 on the upside. A POET collar hedges an existing long POET 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 POET IV rank near 96.73% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on POET at 191.64%. As a Technology name, POET options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to POET-specific events.

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

Frequently asked questions

What is a collar on POET?: A collar on POET is the collar strategy applied to POET (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 POET stock trading near $16.73, the strikes shown on this page are snapped to the nearest listed POET chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are POET 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 POET collar priced from the end-of-day chain at a 30-day expiry (ATM IV 191.64%), the computed maximum profit is $148.00 per contract and the computed maximum loss is -$52.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a POET collar?: The breakeven for the POET collar priced on this page is roughly $16.52 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 POET market-implied 1-standard-deviation expected move is approximately 54.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on POET?: Collars on POET hedge an existing long POET 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 POET implied volatility affect this collar?: POET ATM IV is at 191.64% with IV rank near 96.73%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.