How are SOFI 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 SOFI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 64.15%), the computed maximum profit is $87.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOFI collar?

The breakeven for the SOFI collar priced on this page is roughly $18.13 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 SOFI market-implied 1-standard-deviation expected move is approximately 18.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SOFI implied volatility affect this collar?

SOFI ATM IV is at 64.15% with IV rank near 39.87%, 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.

SOFI Collar Strategy

SOFI (SoFi Technologies, Inc.), in the Financial Services sector, (Financial - Credit Services industry), listed on NASDAQ.

SoFi Technologies, Inc. specializes in delivering a wide array of online financial solutions. The company's business is structured across three main divisions: Lending, Technology Platform, and Financial Services. Through its diverse offerings, SoFi empowers its members to manage their money comprehensively, facilitating borrowing, saving, spending, investing, and asset protection. Its lending portfolio includes student loans, personal loans for various needs like debt consolidation or home improvements, and home mortgages. Furthermore, SoFi provides services for cash management and investment, complemented by its robust technology services. This technology segment features Galileo, a platform serving both financial and non-financial institutions; Apex, a technology-driven platform for investment custody and clearing brokerage; and Technisys, a cutting-edge, cloud-native core banking platform designed for multiple products.

SOFI (SoFi Technologies, Inc.) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $22.90B, a trailing P/E of 39.49, a beta of 2.15 versus the broader market, a 52-week range of 14.92-32.73, average daily share volume of 70.1M, a public-listing history dating back to 2021, approximately 5K full-time employees. These structural characteristics shape how SOFI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.15 indicates SOFI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 39.49 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.

What is a collar on SOFI?

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 SOFI snapshot

As of June 29, 2026, spot at $18.24, ATM IV 64.15%, IV rank 39.87%, expected move 18.39%. The collar on SOFI 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 32-day expiry.

Why this collar structure on SOFI specifically: IV regime affects collar pricing on both sides; mid-range SOFI IV at 64.15% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.39% (roughly $3.35 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SOFI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOFI should anchor to the underlying notional of $18.24 per share and to the trader's directional view on SOFI stock.

SOFI collar setup

The SOFI 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 SOFI near $18.24, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOFI chain at a 32-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 SOFI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$18.24	long
Sell 1	Call	$19.00	$1.14
Buy 1	Put	$17.50	$1.02

SOFI collar risk and reward

Net Premium / Debit: -$1,812.50
Max Profit (per contract): $87.50
Max Loss (per contract): -$62.50
Breakeven(s): $18.13
Risk / Reward Ratio: 1.400

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.

SOFI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SOFI. 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	-99.9%	-$62.50
$4.04	-77.8%	-$62.50
$8.07	-55.7%	-$62.50
$12.11	-33.6%	-$62.50
$16.14	-11.5%	-$62.50
$20.17	+10.6%	+$87.50
$24.20	+32.7%	+$87.50
$28.23	+54.8%	+$87.50
$32.26	+76.9%	+$87.50
$36.30	+99.0%	+$87.50

When traders use collar on SOFI

Collars on SOFI hedge an existing long SOFI 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.

SOFI thesis for this collar

The market-implied 1-standard-deviation range for SOFI extends from approximately $14.89 on the downside to $21.59 on the upside. A SOFI collar hedges an existing long SOFI 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 SOFI IV rank near 39.87% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SOFI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SOFI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOFI-specific events.

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

Frequently asked questions

What is a collar on SOFI?: A collar on SOFI is the collar strategy applied to SOFI (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 SOFI stock trading near $18.24, the strikes shown on this page are snapped to the nearest listed SOFI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SOFI 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 SOFI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 64.15%), the computed maximum profit is $87.50 per contract and the computed maximum loss is -$62.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SOFI collar?: The breakeven for the SOFI collar priced on this page is roughly $18.13 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 SOFI market-implied 1-standard-deviation expected move is approximately 18.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SOFI?: Collars on SOFI hedge an existing long SOFI 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 SOFI implied volatility affect this collar?: SOFI ATM IV is at 64.15% with IV rank near 39.87%, 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.