How are STNE 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 STNE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.10%), the computed maximum profit is $51.00 per contract and the computed maximum loss is -$49.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STNE collar?

The breakeven for the STNE collar priced on this page is roughly $10.96 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 STNE market-implied 1-standard-deviation expected move is approximately 14.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STNE implied volatility affect this collar?

STNE ATM IV is at 51.10% with IV rank near 24.21%, 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.

STNE Collar Strategy

STNE (StoneCo Ltd.), in the Technology sector, (Software - Application industry), listed on NASDAQ.

StoneCo Ltd. provides financial technology and software solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. The company offers financial services, including payment, prepayment, digital banking, and credit solutions. It distributes its solutions, principally through proprietary and franchised Stone Hubs, which offer hyper-local sales and services; and sells solutions to brick-and-mortar and digital merchants through sales team. The company served small-and-medium-sized businesses; and marketplaces, e-commerce platforms, and integrated software vendors. StoneCo Ltd. was founded in 2012 and is based in George Town, the Cayman Islands.

STNE (StoneCo Ltd.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $2.67B, a trailing P/E of 4.06, a beta of 1.60 versus the broader market, a 52-week range of 9.45-19.95, average daily share volume of 5.7M, a public-listing history dating back to 2018, approximately 15K full-time employees. These structural characteristics shape how STNE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.60 indicates STNE 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 4.06 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. STNE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on STNE?

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 STNE snapshot

As of June 29, 2026, spot at $10.86, ATM IV 51.10%, IV rank 24.21%, expected move 14.65%. The collar on STNE 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 18-day expiry.

Why this collar structure on STNE specifically: IV regime affects collar pricing on both sides; compressed STNE IV at 51.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.65% (roughly $1.59 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STNE expiries trade a higher absolute premium for lower per-day decay. Position sizing on STNE should anchor to the underlying notional of $10.86 per share and to the trader's directional view on STNE stock.

STNE collar setup

The STNE 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 STNE near $10.86, the first option leg uses a $11.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STNE chain at a 18-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 STNE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$10.86	long
Sell 1	Call	$11.47	$0.23
Buy 1	Put	$10.47	$0.33

STNE collar risk and reward

Net Premium / Debit: -$1,096.00
Max Profit (per contract): $51.00
Max Loss (per contract): -$49.00
Breakeven(s): $10.96
Risk / Reward Ratio: 1.041

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.

STNE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on STNE. 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%	-$49.00
$2.41	-77.8%	-$49.00
$4.81	-55.7%	-$49.00
$7.21	-33.6%	-$49.00
$9.61	-11.5%	-$49.00
$12.01	+10.6%	+$51.00
$14.41	+32.7%	+$51.00
$16.81	+54.8%	+$51.00
$19.21	+76.9%	+$51.00
$21.61	+99.0%	+$51.00

When traders use collar on STNE

Collars on STNE hedge an existing long STNE 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.

STNE thesis for this collar

The market-implied 1-standard-deviation range for STNE extends from approximately $9.27 on the downside to $12.45 on the upside. A STNE collar hedges an existing long STNE 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 STNE IV rank near 24.21% 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 STNE at 51.10%. As a Technology name, STNE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STNE-specific events.

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

Frequently asked questions

What is a collar on STNE?: A collar on STNE is the collar strategy applied to STNE (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 STNE stock trading near $10.86, the strikes shown on this page are snapped to the nearest listed STNE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STNE 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 STNE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.10%), the computed maximum profit is $51.00 per contract and the computed maximum loss is -$49.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STNE collar?: The breakeven for the STNE collar priced on this page is roughly $10.96 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 STNE market-implied 1-standard-deviation expected move is approximately 14.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on STNE?: Collars on STNE hedge an existing long STNE 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 STNE implied volatility affect this collar?: STNE ATM IV is at 51.10% with IV rank near 24.21%, 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.