How are RUN 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 RUN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 71.98%), the computed maximum profit is $108.50 per contract and the computed maximum loss is -$91.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RUN collar?

The breakeven for the RUN collar priced on this page is roughly $13.92 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 RUN market-implied 1-standard-deviation expected move is approximately 20.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RUN implied volatility affect this collar?

RUN ATM IV is at 71.98% with IV rank near 14.73%, 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.

RUN Collar Strategy

RUN (Sunrun Inc.), in the Energy sector, (Solar industry), listed on NASDAQ.

Sunrun Inc. engages in the design, development, installation, sale, ownership, and maintenance of residential solar energy systems in the United States. It also sells solar energy systems and products, such as panels and racking; and solar leads generated to customers. In addition, the company offers battery storage along with solar energy systems. Its primary customers are residential homeowners. The company markets and sells its products through direct-to-consumer approach across online, retail, mass media, digital media, canvassing, field marketing, and referral channels, as well as its partner network. Sunrun Inc. was founded in 2007 and is headquartered in San Francisco, California.

RUN (Sunrun Inc.) trades in the Energy sector, specifically Solar, with a market capitalization of approximately $3.45B, a trailing P/E of 5.97, a beta of 2.25 versus the broader market, a 52-week range of 5.38-22.44, average daily share volume of 10.1M, a public-listing history dating back to 2015, approximately 11K full-time employees. These structural characteristics shape how RUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.25 indicates RUN 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 5.97 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a collar on RUN?

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 RUN snapshot

As of May 15, 2026, spot at $14.12, ATM IV 71.98%, IV rank 14.73%, expected move 20.64%. The collar on RUN 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 RUN specifically: IV regime affects collar pricing on both sides; compressed RUN IV at 71.98% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.64% (roughly $2.91 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 RUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on RUN should anchor to the underlying notional of $14.12 per share and to the trader's directional view on RUN stock.

RUN collar setup

The RUN 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 RUN near $14.12, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RUN 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 RUN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.12	long
Sell 1	Call	$15.00	$0.80
Buy 1	Put	$13.00	$0.60

RUN collar risk and reward

Net Premium / Debit: -$1,391.50
Max Profit (per contract): $108.50
Max Loss (per contract): -$91.50
Breakeven(s): $13.92
Risk / Reward Ratio: 1.186

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.

RUN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RUN. 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%	-$91.50
$3.13	-77.8%	-$91.50
$6.25	-55.7%	-$91.50
$9.37	-33.6%	-$91.50
$12.49	-11.5%	-$91.50
$15.61	+10.6%	+$108.50
$18.74	+32.7%	+$108.50
$21.86	+54.8%	+$108.50
$24.98	+76.9%	+$108.50
$28.10	+99.0%	+$108.50

When traders use collar on RUN

Collars on RUN hedge an existing long RUN 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.

RUN thesis for this collar

The market-implied 1-standard-deviation range for RUN extends from approximately $11.21 on the downside to $17.03 on the upside. A RUN collar hedges an existing long RUN 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 RUN IV rank near 14.73% 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 RUN at 71.98%. As a Energy name, RUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RUN-specific events.

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

Frequently asked questions

What is a collar on RUN?: A collar on RUN is the collar strategy applied to RUN (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 RUN stock trading near $14.12, the strikes shown on this page are snapped to the nearest listed RUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RUN 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 RUN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 71.98%), the computed maximum profit is $108.50 per contract and the computed maximum loss is -$91.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RUN collar?: The breakeven for the RUN collar priced on this page is roughly $13.92 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 RUN market-implied 1-standard-deviation expected move is approximately 20.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RUN?: Collars on RUN hedge an existing long RUN 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 RUN implied volatility affect this collar?: RUN ATM IV is at 71.98% with IV rank near 14.73%, 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.