How are SKY 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 SKY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.60%), the computed maximum profit is $542.00 per contract and the computed maximum loss is -$458.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SKY collar?

The breakeven for the SKY collar priced on this page is roughly $84.58 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 SKY market-implied 1-standard-deviation expected move is approximately 13.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SKY implied volatility affect this collar?

SKY ATM IV is at 46.60% with IV rank near 26.72%, 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.

SKY Collar Strategy

SKY (Champion Homes, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.

Champion Homes, Inc. manufactures and sells prefabricated housing units throughout North America. Its diverse product portfolio includes manufactured and modular homes, recreational park model vehicles, accessory dwelling units, and specialized modular structures catering to the multi-family and hospitality sectors. The company operates under numerous brand names across the United States, including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes. In western Canada, its products are sold under the Moduline and SRI Homes labels. Beyond manufacturing, Champion Homes offers construction services for the installation and setup of its factory-built residences. It also manages Titan Factory Direct, a direct-to-consumer retail business with 18 sales centers strategically located across the southern United States, and provides transportation services for both manufactured homes and recreational vehicles.

SKY (Champion Homes, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $4.88B, a trailing P/E of 24.26, a beta of 1.04 versus the broader market, a 52-week range of 60.13-99.17, average daily share volume of 702K, a public-listing history dating back to 1973, approximately 9K full-time employees. These structural characteristics shape how SKY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.04 places SKY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on SKY?

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 SKY snapshot

As of June 29, 2026, spot at $86.73, ATM IV 46.60%, IV rank 26.72%, expected move 13.36%. The collar on SKY 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 53-day expiry.

Why this collar structure on SKY specifically: IV regime affects collar pricing on both sides; compressed SKY IV at 46.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.36% (roughly $11.59 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SKY expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKY should anchor to the underlying notional of $86.73 per share and to the trader's directional view on SKY stock.

SKY collar setup

The SKY 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 SKY near $86.73, 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 SKY chain at a 53-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 SKY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$86.73	long
Sell 1	Call	$90.00	$6.10
Buy 1	Put	$80.00	$3.95

SKY collar risk and reward

Net Premium / Debit: -$8,458.00
Max Profit (per contract): $542.00
Max Loss (per contract): -$458.00
Breakeven(s): $84.58
Risk / Reward Ratio: 1.183

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.

SKY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SKY. 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%	-$458.00
$19.19	-77.9%	-$458.00
$38.36	-55.8%	-$458.00
$57.54	-33.7%	-$458.00
$76.71	-11.6%	-$458.00
$95.89	+10.6%	+$542.00
$115.06	+32.7%	+$542.00
$134.24	+54.8%	+$542.00
$153.41	+76.9%	+$542.00
$172.59	+99.0%	+$542.00

When traders use collar on SKY

Collars on SKY hedge an existing long SKY 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.

SKY thesis for this collar

The market-implied 1-standard-deviation range for SKY extends from approximately $75.14 on the downside to $98.32 on the upside. A SKY collar hedges an existing long SKY 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 SKY IV rank near 26.72% 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 SKY at 46.60%. As a Consumer Cyclical name, SKY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKY-specific events.

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

Frequently asked questions

What is a collar on SKY?: A collar on SKY is the collar strategy applied to SKY (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 SKY stock trading near $86.73, the strikes shown on this page are snapped to the nearest listed SKY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SKY 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 SKY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.60%), the computed maximum profit is $542.00 per contract and the computed maximum loss is -$458.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SKY collar?: The breakeven for the SKY collar priced on this page is roughly $84.58 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 SKY market-implied 1-standard-deviation expected move is approximately 13.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SKY?: Collars on SKY hedge an existing long SKY 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 SKY implied volatility affect this collar?: SKY ATM IV is at 46.60% with IV rank near 26.72%, 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.