How are RACE 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 RACE collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.01%), the computed maximum profit is $2,148.50 per contract and the computed maximum loss is -$1,851.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RACE collar?

The breakeven for the RACE collar priced on this page is roughly $413.52 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 RACE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RACE implied volatility affect this collar?

RACE ATM IV is at 26.01% with IV rank near 16.92%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.

RACE Collar Strategy

RACE (Ferrari N.V.), in the Consumer Cyclical sector, (Auto - Manufacturers industry), listed on NYSE.

Ferrari N.V. is a renowned automotive manufacturer primarily engaged in the creation, engineering, production, and sale of an exclusive range of high-performance luxury automobiles. Its extensive vehicle lineup features diverse models, including traditional sports cars, Grand Tourers (GTs), specialized series editions, ultra-exclusive limited-edition hypercars, bespoke one-off vehicles, track-specific designs, and its distinctive Icona series. Beyond car manufacturing, the company also supplies motorsport vehicles, essential components like spare parts and engines, and delivers comprehensive after-sales services such as vehicle repair, maintenance, and restoration. Expanding its brand influence, Ferrari N.V. strategically licenses its iconic marque to various producers and retailers of upscale lifestyle merchandise. This also extends to prominent leisure destinations, including the Ferrari World theme park in Abu Dhabi, UAE, and Ferrari Land Portaventura in Europe. The company further diversifies its operations by offering direct and indirect financing and leasing solutions to both individual customers and dealership partners.

RACE (Ferrari N.V.) trades in the Consumer Cyclical sector, specifically Auto - Manufacturers, with a market capitalization of approximately $71.63B, a trailing P/E of 37.84, a beta of 0.60 versus the broader market, a 52-week range of 312.51-504.49, average daily share volume of 600K, a public-listing history dating back to 2015, approximately 6K full-time employees. These structural characteristics shape how RACE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates RACE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 37.84 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. RACE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on RACE?

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.

RACE snapshot

As of August 14, 2026, spot at $414.49, ATM IV 26.01%, IV rank 16.92%, expected move 7.46%. The collar on RACE 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 28-day expiry.

Why this collar structure on RACE specifically: IV regime affects collar pricing on both sides; compressed RACE IV at 26.01% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.46% (roughly $30.90 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 RACE expiries trade a higher absolute premium for lower per-day decay. Position sizing on RACE should anchor to the underlying notional of $414.49 per share and to the trader's directional view on RACE stock.

RACE collar setup

The RACE 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 RACE at $414.49 on that close, the first option leg uses a $435.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RACE 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 RACE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$414.49	long
Sell 1	Call	$435.00	$4.85
Buy 1	Put	$395.00	$3.88

RACE collar risk and reward

Net Premium / Debit: -$41,351.50
Max Profit (per contract): $2,148.50
Max Loss (per contract): -$1,851.50
Breakeven(s): $413.52
Risk / Reward Ratio: 1.160

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.

RACE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RACE. 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%	-$1,851.50
$91.65	-77.9%	-$1,851.50
$183.30	-55.8%	-$1,851.50
$274.94	-33.7%	-$1,851.50
$366.59	-11.6%	-$1,851.50
$458.23	+10.6%	+$2,148.50
$549.88	+32.7%	+$2,148.50
$641.52	+54.8%	+$2,148.50
$733.17	+76.9%	+$2,148.50
$824.81	+99.0%	+$2,148.50

When traders use collar on RACE

Collars on RACE hedge an existing long RACE 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.

RACE thesis for this collar

The market-implied 1-standard-deviation range for RACE extends from approximately $383.59 on the downside to $445.39 on the upside. A RACE collar hedges an existing long RACE 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 RACE IV rank near 16.92% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on RACE at 26.01%. As a Consumer Cyclical name, RACE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RACE-specific events.

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

Frequently asked questions

What is a collar on RACE?: A collar on RACE is the collar strategy applied to RACE (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 RACE stock at $414.49 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RACE chain strike and the premiums come straight from that session's bid/ask midpoint.
How are RACE 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 RACE collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.01%), the computed maximum profit is $2,148.50 per contract and the computed maximum loss is -$1,851.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RACE collar?: The breakeven for the RACE collar priced on this page is roughly $413.52 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 RACE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.46%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RACE?: Collars on RACE hedge an existing long RACE 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 RACE implied volatility affect this collar?: RACE ATM IV is at 26.01% with IV rank near 16.92%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.