How are SAIC 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 SAIC collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.70%), the computed maximum profit is $756.00 per contract and the computed maximum loss is -$744.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SAIC collar?

The breakeven for the SAIC collar priced on this page is roughly $127.44 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 SAIC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SAIC implied volatility affect this collar?

SAIC ATM IV is at 44.70% with IV rank near 59.91%, 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.

SAIC Collar Strategy

SAIC (Science Applications International Corporation), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.

Science Applications International Corporation (SAIC), a U.S.-based firm, specializes in providing a wide array of advanced technical, engineering, and comprehensive information technology (IT) solutions. Its diverse offerings span crucial areas such as specialized engineering, seamless technology integration, and vital IT modernization initiatives. The company also handles the upkeep of land-based and naval systems, offers logistics management, and develops training and simulation programs. Furthermore, SAIC delivers full lifecycle IT services, covering everything from the initial design and development to integration, deployment, ongoing management, operations, sustainment, and robust security for client IT infrastructures. This extensive portfolio also includes services like cloud migration strategies, managed IT services, infrastructure upgrades, and complete enterprise IT-as-a-service solutions. SAIC's clientele primarily consists of various U.S. government entities.

SAIC (Science Applications International Corporation) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $5.34B, a trailing P/E of 13.63, a beta of 0.28 versus the broader market, a 52-week range of 81.08-127.28, average daily share volume of 531K, a public-listing history dating back to 2013, approximately 23K full-time employees. These structural characteristics shape how SAIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.28 indicates SAIC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SAIC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SAIC?

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.

SAIC snapshot

As of August 14, 2026, spot at $126.59, ATM IV 44.70%, IV rank 59.91%, expected move 12.82%. The collar on SAIC 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 35-day expiry.

Why this collar structure on SAIC specifically: IV regime affects collar pricing on both sides; mid-range SAIC IV at 44.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.82% (roughly $16.22 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SAIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SAIC should anchor to the underlying notional of $126.59 per share and to the trader's directional view on SAIC stock.

SAIC collar setup

The SAIC 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 SAIC at $126.59 on that close, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SAIC chain at a 35-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 SAIC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$126.59	long
Sell 1	Call	$135.00	$3.30
Buy 1	Put	$120.00	$4.15

SAIC collar risk and reward

Net Premium / Debit: -$12,744.00
Max Profit (per contract): $756.00
Max Loss (per contract): -$744.00
Breakeven(s): $127.44
Risk / Reward Ratio: 1.016

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.

SAIC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SAIC. 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%	-$744.00
$28.00	-77.9%	-$744.00
$55.99	-55.8%	-$744.00
$83.98	-33.7%	-$744.00
$111.96	-11.6%	-$744.00
$139.95	+10.6%	+$756.00
$167.94	+32.7%	+$756.00
$195.93	+54.8%	+$756.00
$223.92	+76.9%	+$756.00
$251.91	+99.0%	+$756.00

When traders use collar on SAIC

Collars on SAIC hedge an existing long SAIC 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.

SAIC thesis for this collar

The market-implied 1-standard-deviation range for SAIC extends from approximately $110.37 on the downside to $142.81 on the upside. A SAIC collar hedges an existing long SAIC 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 SAIC IV rank near 59.91% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SAIC should anchor more to the directional view and the expected-move geometry. As a Technology name, SAIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SAIC-specific events.

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

Frequently asked questions

What is a collar on SAIC?: A collar on SAIC is the collar strategy applied to SAIC (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 SAIC stock at $126.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SAIC chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SAIC 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 SAIC collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.70%), the computed maximum profit is $756.00 per contract and the computed maximum loss is -$744.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SAIC collar?: The breakeven for the SAIC collar priced on this page is roughly $127.44 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 SAIC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SAIC?: Collars on SAIC hedge an existing long SAIC 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 SAIC implied volatility affect this collar?: SAIC ATM IV is at 44.70% with IV rank near 59.91%, 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.