How are SA 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 SA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 77.00%), the computed maximum profit is $128.50 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SA collar?

The breakeven for the SA collar priced on this page is roughly $25.72 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 SA market-implied 1-standard-deviation expected move is approximately 22.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SA implied volatility affect this collar?

SA ATM IV is at 77.00% with IV rank near 55.74%, 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.

SA Collar Strategy

SA (Seabridge Gold Inc.), in the Basic Materials sector, (Gold industry), listed on NYSE.

Seabridge Gold Inc., operating with its various subsidiaries, primarily concentrates on the acquisition and exploration of precious metals, specifically gold, across the North American continent. Beyond gold, the company also actively prospects for deposits of other valuable minerals, including copper, silver, molybdenum, and rhenium. Its portfolio features significant projects such as the Kerr-Sulphurets-Mitchell (KSM) and Iskut properties in British Columbia, Canada; the Courageous Lake property in the Northwest Territories, Canada; the Snowstorm project situated in Nevada, USA; and the 3 Aces project located in the Yukon Territory, Canada. The corporation underwent a rebranding in June 2002, transitioning from its former identity as Seabridge Resources Inc. to its current name, Seabridge Gold Inc. Established in 1979, the company maintains its corporate headquarters in Toronto, Canada.

SA (Seabridge Gold Inc.) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $2.81B, a beta of 1.81 versus the broader market, a 52-week range of 14.1-40.06, average daily share volume of 929K, a public-listing history dating back to 2004, approximately 12 full-time employees. These structural characteristics shape how SA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.81 indicates SA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on SA?

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 SA snapshot

As of June 30, 2026, spot at $25.89, ATM IV 77.00%, IV rank 55.74%, expected move 22.08%. The collar on SA 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 17-day expiry.

Why this collar structure on SA specifically: IV regime affects collar pricing on both sides; mid-range SA IV at 77.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.08% (roughly $5.72 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SA expiries trade a higher absolute premium for lower per-day decay. Position sizing on SA should anchor to the underlying notional of $25.89 per share and to the trader's directional view on SA stock.

SA collar setup

The SA 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 SA near $25.89, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SA chain at a 17-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 SA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$25.89	long
Sell 1	Call	$27.00	$1.43
Buy 1	Put	$25.00	$1.25

SA collar risk and reward

Net Premium / Debit: -$2,571.50
Max Profit (per contract): $128.50
Max Loss (per contract): -$71.50
Breakeven(s): $25.72
Risk / Reward Ratio: 1.797

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.

SA collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SA. 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%	-$71.50
$5.73	-77.9%	-$71.50
$11.46	-55.7%	-$71.50
$17.18	-33.6%	-$71.50
$22.90	-11.5%	-$71.50
$28.63	+10.6%	+$128.50
$34.35	+32.7%	+$128.50
$40.07	+54.8%	+$128.50
$45.80	+76.9%	+$128.50
$51.52	+99.0%	+$128.50

When traders use collar on SA

Collars on SA hedge an existing long SA 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.

SA thesis for this collar

The market-implied 1-standard-deviation range for SA extends from approximately $20.17 on the downside to $31.61 on the upside. A SA collar hedges an existing long SA 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 SA IV rank near 55.74% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SA should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, SA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SA-specific events.

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

Frequently asked questions

What is a collar on SA?: A collar on SA is the collar strategy applied to SA (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 SA stock trading near $25.89, the strikes shown on this page are snapped to the nearest listed SA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SA 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 SA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 77.00%), the computed maximum profit is $128.50 per contract and the computed maximum loss is -$71.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SA collar?: The breakeven for the SA collar priced on this page is roughly $25.72 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 SA market-implied 1-standard-deviation expected move is approximately 22.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SA?: Collars on SA hedge an existing long SA 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 SA implied volatility affect this collar?: SA ATM IV is at 77.00% with IV rank near 55.74%, 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.