How are SBUX 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 SBUX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.37%), the computed maximum profit is $559.50 per contract and the computed maximum loss is -$540.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SBUX collar?

The breakeven for the SBUX collar priced on this page is roughly $106.41 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 SBUX market-implied 1-standard-deviation expected move is approximately 8.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SBUX implied volatility affect this collar?

SBUX ATM IV is at 28.37% with IV rank near 12.16%, 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.

SBUX Collar Strategy

SBUX (Starbucks Corporation), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.

Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company operates through three segments: North America, International, and Channel Development. Its stores offer coffee and tea beverages, roasted whole beans and ground coffees, single serve products, and ready-to-drink beverages; and various food products, such as pastries, breakfast sandwiches, and lunch items. The company also licenses its trademarks through licensed stores, and grocery and foodservice accounts. The company offers its products under the Starbucks, Teavana, Seattle's Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brands. As of October 3, 2021, it operated 16,826 company-operated and licensed stores in North America; and 17,007 company-operated and licensed stores internationally.

SBUX (Starbucks Corporation) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $120.75B, a trailing P/E of 80.72, a beta of 1.01 versus the broader market, a 52-week range of 77.99-108.05, average daily share volume of 7.7M, a public-listing history dating back to 1992, approximately 361K full-time employees. These structural characteristics shape how SBUX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places SBUX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 80.72 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. SBUX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on SBUX?

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 SBUX snapshot

As of May 15, 2026, spot at $106.53, ATM IV 28.37%, IV rank 12.16%, expected move 8.13%. The collar on SBUX 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 SBUX specifically: IV regime affects collar pricing on both sides; compressed SBUX IV at 28.37% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.13% (roughly $8.67 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 SBUX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SBUX should anchor to the underlying notional of $106.53 per share and to the trader's directional view on SBUX stock.

SBUX collar setup

The SBUX 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 SBUX near $106.53, the first option leg uses a $112.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SBUX 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 SBUX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$106.53	long
Sell 1	Call	$112.00	$1.33
Buy 1	Put	$101.00	$1.20

SBUX collar risk and reward

Net Premium / Debit: -$10,640.50
Max Profit (per contract): $559.50
Max Loss (per contract): -$540.50
Breakeven(s): $106.41
Risk / Reward Ratio: 1.035

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.

SBUX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SBUX. 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	-100.0%	-$540.50
$23.56	-77.9%	-$540.50
$47.12	-55.8%	-$540.50
$70.67	-33.7%	-$540.50
$94.22	-11.6%	-$540.50
$117.78	+10.6%	+$559.50
$141.33	+32.7%	+$559.50
$164.88	+54.8%	+$559.50
$188.44	+76.9%	+$559.50
$211.99	+99.0%	+$559.50

When traders use collar on SBUX

Collars on SBUX hedge an existing long SBUX 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.

SBUX thesis for this collar

The market-implied 1-standard-deviation range for SBUX extends from approximately $97.86 on the downside to $115.20 on the upside. A SBUX collar hedges an existing long SBUX 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 SBUX IV rank near 12.16% 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 SBUX at 28.37%. As a Consumer Cyclical name, SBUX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SBUX-specific events.

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

Frequently asked questions

What is a collar on SBUX?: A collar on SBUX is the collar strategy applied to SBUX (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 SBUX stock trading near $106.53, the strikes shown on this page are snapped to the nearest listed SBUX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SBUX 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 SBUX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.37%), the computed maximum profit is $559.50 per contract and the computed maximum loss is -$540.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SBUX collar?: The breakeven for the SBUX collar priced on this page is roughly $106.41 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 SBUX market-implied 1-standard-deviation expected move is approximately 8.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SBUX?: Collars on SBUX hedge an existing long SBUX 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 SBUX implied volatility affect this collar?: SBUX ATM IV is at 28.37% with IV rank near 12.16%, 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.