How are SAH 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 SAH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 88.20%), the computed maximum profit is $589.00 per contract and the computed maximum loss is -$411.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SAH collar?

The breakeven for the SAH collar priced on this page is roughly $84.11 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 SAH market-implied 1-standard-deviation expected move is approximately 25.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SAH implied volatility affect this collar?

SAH ATM IV is at 88.20% with IV rank near 20.03%, 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.

SAH Collar Strategy

SAH (Sonic Automotive, Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NYSE.

Sonic Automotive, Inc. operates as a significant automotive retailer across the United States, structuring its diverse business activities into two primary divisions: Franchised Dealerships and EchoPark. The Franchised Dealerships segment is responsible for selling both new and pre-owned cars and light trucks, in addition to supplying replacement parts. This division also provides a full range of services, including routine vehicle maintenance, authorized manufacturer warranty repairs, and specialized paint and collision repair. Moreover, it assists customers in securing supplementary products such as extended warranties, service contracts, financing options, insurance, and other aftermarket offerings. The EchoPark segment specializes in the retail of used cars and light trucks. Operating from its dedicated pre-owned vehicle specialty stores, this division also helps clients with the purchase of finance and insurance products.

SAH (Sonic Automotive, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $2.87B, a trailing P/E of 26.07, a beta of 0.90 versus the broader market, a 52-week range of 54.11-89.62, average daily share volume of 267K, a public-listing history dating back to 1997, approximately 11K full-time employees. These structural characteristics shape how SAH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.90 places SAH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SAH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SAH?

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 SAH snapshot

As of June 30, 2026, spot at $84.31, ATM IV 88.20%, IV rank 20.03%, expected move 25.29%. The collar on SAH 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 143-day expiry.

Why this collar structure on SAH specifically: IV regime affects collar pricing on both sides; compressed SAH IV at 88.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.29% (roughly $21.32 on the underlying). The 143-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SAH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SAH should anchor to the underlying notional of $84.31 per share and to the trader's directional view on SAH stock.

SAH collar setup

The SAH 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 SAH near $84.31, the first option leg uses a $90.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SAH chain at a 143-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 SAH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$84.31	long
Sell 1	Call	$90.00	$6.00
Buy 1	Put	$80.00	$5.80

SAH collar risk and reward

Net Premium / Debit: -$8,411.00
Max Profit (per contract): $589.00
Max Loss (per contract): -$411.00
Breakeven(s): $84.11
Risk / Reward Ratio: 1.433

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.

SAH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SAH. 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%	-$411.00
$18.65	-77.9%	-$411.00
$37.29	-55.8%	-$411.00
$55.93	-33.7%	-$411.00
$74.57	-11.6%	-$411.00
$93.21	+10.6%	+$589.00
$111.85	+32.7%	+$589.00
$130.49	+54.8%	+$589.00
$149.13	+76.9%	+$589.00
$167.77	+99.0%	+$589.00

When traders use collar on SAH

Collars on SAH hedge an existing long SAH 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.

SAH thesis for this collar

The market-implied 1-standard-deviation range for SAH extends from approximately $62.99 on the downside to $105.63 on the upside. A SAH collar hedges an existing long SAH 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 SAH IV rank near 20.03% 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 SAH at 88.20%. As a Consumer Cyclical name, SAH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SAH-specific events.

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

Frequently asked questions

What is a collar on SAH?: A collar on SAH is the collar strategy applied to SAH (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 SAH stock trading near $84.31, the strikes shown on this page are snapped to the nearest listed SAH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SAH 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 SAH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 88.20%), the computed maximum profit is $589.00 per contract and the computed maximum loss is -$411.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SAH collar?: The breakeven for the SAH collar priced on this page is roughly $84.11 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 SAH market-implied 1-standard-deviation expected move is approximately 25.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SAH?: Collars on SAH hedge an existing long SAH 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 SAH implied volatility affect this collar?: SAH ATM IV is at 88.20% with IV rank near 20.03%, 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.