How are SPHR 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 SPHR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $1,279.50 per contract and the computed maximum loss is -$720.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SPHR collar?

The breakeven for the SPHR collar priced on this page is roughly $167.21 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 SPHR market-implied 1-standard-deviation expected move is approximately 14.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SPHR implied volatility affect this collar?

SPHR ATM IV is at 50.80% with IV rank near 21.39%, 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.

SPHR Collar Strategy

SPHR (Sphere Entertainment Co.), in the Communication Services sector, (Entertainment industry), listed on NYSE.

Sphere Entertainment Co. is a prominent player in the entertainment sector, specializing in orchestrating, staging, and hosting a diverse array of live events. This encompasses musical concerts, family-oriented productions, and unique special occasions, alongside a variety of athletic competitions. Its sports programming includes professional boxing, collegiate basketball and hockey, professional bull riding, mixed martial arts, esports tournaments, and wrestling matches. These events are primarily hosted across its esteemed venues such as The Garden, Hulu Theater, Radio City Music Hall, and the Beacon Theatre in New York City, as well as The Chicago Theatre. Furthermore, Sphere Entertainment manages a substantial network of 70 entertainment, dining, and nightlife establishments, which are distributed across 20 global markets on five continents under renowned brands like Tao, Marquee, Lavo, Beauty & Essex, Cathédrale, Hakkasan, and Omnia. The company also oversees the creation and operation of a leading music festival in New England.

SPHR (Sphere Entertainment Co.) trades in the Communication Services sector, specifically Entertainment, with a market capitalization of approximately $6.12B, a trailing P/E of 50.86, a beta of 1.65 versus the broader market, a 52-week range of 37.89-171.47, average daily share volume of 721K, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how SPHR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.65 indicates SPHR 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 50.86 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 SPHR?

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 SPHR snapshot

As of June 29, 2026, spot at $169.13, ATM IV 50.80%, IV rank 21.39%, expected move 14.56%. The collar on SPHR 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 17-day expiry.

Why this collar structure on SPHR specifically: IV regime affects collar pricing on both sides; compressed SPHR IV at 50.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.56% (roughly $24.63 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPHR expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPHR should anchor to the underlying notional of $169.13 per share and to the trader's directional view on SPHR stock.

SPHR collar setup

The SPHR 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 SPHR near $169.13, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPHR chain at a 17-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 SPHR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$169.13	long
Sell 1	Call	$180.00	$4.75
Buy 1	Put	$160.00	$2.83

SPHR collar risk and reward

Net Premium / Debit: -$16,720.50
Max Profit (per contract): $1,279.50
Max Loss (per contract): -$720.50
Breakeven(s): $167.21
Risk / Reward Ratio: 1.776

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.

SPHR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SPHR. 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%	-$720.50
$37.40	-77.9%	-$720.50
$74.80	-55.8%	-$720.50
$112.19	-33.7%	-$720.50
$149.59	-11.6%	-$720.50
$186.98	+10.6%	+$1,279.50
$224.38	+32.7%	+$1,279.50
$261.77	+54.8%	+$1,279.50
$299.17	+76.9%	+$1,279.50
$336.56	+99.0%	+$1,279.50

When traders use collar on SPHR

Collars on SPHR hedge an existing long SPHR 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.

SPHR thesis for this collar

The market-implied 1-standard-deviation range for SPHR extends from approximately $144.50 on the downside to $193.76 on the upside. A SPHR collar hedges an existing long SPHR 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 SPHR IV rank near 21.39% 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 SPHR at 50.80%. As a Communication Services name, SPHR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPHR-specific events.

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

Frequently asked questions

What is a collar on SPHR?: A collar on SPHR is the collar strategy applied to SPHR (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 SPHR stock trading near $169.13, the strikes shown on this page are snapped to the nearest listed SPHR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are SPHR 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 SPHR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $1,279.50 per contract and the computed maximum loss is -$720.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SPHR collar?: The breakeven for the SPHR collar priced on this page is roughly $167.21 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 SPHR market-implied 1-standard-deviation expected move is approximately 14.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SPHR?: Collars on SPHR hedge an existing long SPHR 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 SPHR implied volatility affect this collar?: SPHR ATM IV is at 50.80% with IV rank near 21.39%, 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.