How are SOUN 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 SOUN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 73.23%), the computed maximum profit is $19.50 per contract and the computed maximum loss is -$30.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOUN collar?

The breakeven for the SOUN collar priced on this page is roughly $6.31 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 SOUN market-implied 1-standard-deviation expected move is approximately 21.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SOUN implied volatility affect this collar?

SOUN ATM IV is at 73.23% with IV rank near 15.45%, 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.

SOUN Collar Strategy

SOUN (SoundHound AI, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

SoundHound AI, Inc. (SOUN) creates and provides its own artificial intelligence platform, exclusively focused on voice technology. This technology empowers companies across a wide range of industries to offer sophisticated and engaging conversational experiences to their clientele. Its primary offering, the Houndify platform, furnishes a comprehensive toolkit designed to assist brands in developing tailored voice assistants. These capabilities encompass automatic speech recognition (ASR), natural language understanding (NLU), custom wake words, domain-specific applications, text-to-speech (TTS) synthesis, and embedded voice solutions for integration into various products. The company's operations are centered at its headquarters in Santa Clara, California.

SOUN (SoundHound AI, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $2.77B, a beta of 2.74 versus the broader market, a 52-week range of 5.83-22.17, average daily share volume of 27.6M, a public-listing history dating back to 2022, approximately 842 full-time employees. These structural characteristics shape how SOUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.74 indicates SOUN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on SOUN?

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 SOUN snapshot

As of June 29, 2026, spot at $6.42, ATM IV 73.23%, IV rank 15.45%, expected move 21.00%. The collar on SOUN 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 SOUN specifically: IV regime affects collar pricing on both sides; compressed SOUN IV at 73.23% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.00% (roughly $1.35 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 SOUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOUN should anchor to the underlying notional of $6.42 per share and to the trader's directional view on SOUN stock.

SOUN collar setup

The SOUN 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 SOUN near $6.42, the first option leg uses a $6.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOUN 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 SOUN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$6.42	long
Sell 1	Call	$6.50	$0.49
Buy 1	Put	$6.00	$0.37

SOUN collar risk and reward

Net Premium / Debit: -$630.50
Max Profit (per contract): $19.50
Max Loss (per contract): -$30.50
Breakeven(s): $6.31
Risk / Reward Ratio: 0.639

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.

SOUN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SOUN. 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	-99.8%	-$30.50
$1.43	-77.8%	-$30.50
$2.85	-55.7%	-$30.50
$4.27	-33.6%	-$30.50
$5.68	-11.5%	-$30.50
$7.10	+10.6%	+$19.50
$8.52	+32.7%	+$19.50
$9.94	+54.8%	+$19.50
$11.36	+76.9%	+$19.50
$12.78	+99.0%	+$19.50

When traders use collar on SOUN

Collars on SOUN hedge an existing long SOUN 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.

SOUN thesis for this collar

The market-implied 1-standard-deviation range for SOUN extends from approximately $5.07 on the downside to $7.77 on the upside. A SOUN collar hedges an existing long SOUN 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 SOUN IV rank near 15.45% 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 SOUN at 73.23%. As a Technology name, SOUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOUN-specific events.

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

Frequently asked questions

What is a collar on SOUN?: A collar on SOUN is the collar strategy applied to SOUN (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 SOUN stock trading near $6.42, the strikes shown on this page are snapped to the nearest listed SOUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SOUN 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 SOUN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 73.23%), the computed maximum profit is $19.50 per contract and the computed maximum loss is -$30.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SOUN collar?: The breakeven for the SOUN collar priced on this page is roughly $6.31 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 SOUN market-implied 1-standard-deviation expected move is approximately 21.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SOUN?: Collars on SOUN hedge an existing long SOUN 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 SOUN implied volatility affect this collar?: SOUN ATM IV is at 73.23% with IV rank near 15.45%, 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.