How are PSA 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 PSA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.00%), the computed maximum profit is $1,567.50 per contract and the computed maximum loss is -$1,432.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PSA collar?

The breakeven for the PSA collar priced on this page is roughly $294.33 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 PSA market-implied 1-standard-deviation expected move is approximately 7.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PSA implied volatility affect this collar?

PSA ATM IV is at 25.00% with IV rank near 53.28%, 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.

PSA Collar Strategy

PSA (Public Storage), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns and operates self-storage facilities. At September 30, 2020, we had: (i) interests in 2,504 self-storage facilities located in 38 states with approximately 171 million net rentable square feet in the United States, (ii) an approximate 35% common equity interest in Shurgard Self Storage SA (Euronext Brussels:SHUR) which owned 239 self-storage facilities located in seven Western European nations with approximately 13 million net rentable square feet operated under the Shurgard brand and (iii) an approximate 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2020. Our headquarters are located in Glendale, California.

PSA (Public Storage) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $53.31B, a trailing P/E of 28.01, a beta of 0.98 versus the broader market, a 52-week range of 256.54-313.51, average daily share volume of 1.2M, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how PSA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.98 places PSA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PSA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on PSA?

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 PSA snapshot

As of May 15, 2026, spot at $291.85, ATM IV 25.00%, IV rank 53.28%, expected move 7.17%. The collar on PSA 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 PSA specifically: IV regime affects collar pricing on both sides; mid-range PSA IV at 25.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.17% (roughly $20.92 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 PSA expiries trade a higher absolute premium for lower per-day decay. Position sizing on PSA should anchor to the underlying notional of $291.85 per share and to the trader's directional view on PSA stock.

PSA collar setup

The PSA 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 PSA near $291.85, the first option leg uses a $310.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PSA 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 PSA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$291.85	long
Sell 1	Call	$310.00	$2.43
Buy 1	Put	$280.00	$4.90

PSA collar risk and reward

Net Premium / Debit: -$29,432.50
Max Profit (per contract): $1,567.50
Max Loss (per contract): -$1,432.50
Breakeven(s): $294.33
Risk / Reward Ratio: 1.094

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.

PSA collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PSA. 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%	-$1,432.50
$64.54	-77.9%	-$1,432.50
$129.07	-55.8%	-$1,432.50
$193.60	-33.7%	-$1,432.50
$258.12	-11.6%	-$1,432.50
$322.65	+10.6%	+$1,567.50
$387.18	+32.7%	+$1,567.50
$451.71	+54.8%	+$1,567.50
$516.24	+76.9%	+$1,567.50
$580.77	+99.0%	+$1,567.50

When traders use collar on PSA

Collars on PSA hedge an existing long PSA 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.

PSA thesis for this collar

The market-implied 1-standard-deviation range for PSA extends from approximately $270.93 on the downside to $312.77 on the upside. A PSA collar hedges an existing long PSA 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 PSA IV rank near 53.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PSA should anchor more to the directional view and the expected-move geometry. As a Real Estate name, PSA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PSA-specific events.

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

Frequently asked questions

What is a collar on PSA?: A collar on PSA is the collar strategy applied to PSA (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 PSA stock trading near $291.85, the strikes shown on this page are snapped to the nearest listed PSA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PSA 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 PSA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.00%), the computed maximum profit is $1,567.50 per contract and the computed maximum loss is -$1,432.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PSA collar?: The breakeven for the PSA collar priced on this page is roughly $294.33 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 PSA market-implied 1-standard-deviation expected move is approximately 7.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PSA?: Collars on PSA hedge an existing long PSA 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 PSA implied volatility affect this collar?: PSA ATM IV is at 25.00% with IV rank near 53.28%, 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.