How are STX 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 STX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 79.91%), the computed maximum profit is $4,657.00 per contract and the computed maximum loss is -$3,343.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a STX collar?

The breakeven for the STX collar priced on this page is roughly $793.43 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 STX market-implied 1-standard-deviation expected move is approximately 22.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current STX implied volatility affect this collar?

STX ATM IV is at 79.91% with IV rank near 87.83%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

STX Collar Strategy

STX (Seagate Technology Holdings plc), in the Technology sector, (Computer Hardware industry), listed on NASDAQ.

Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives. The company also offers legacy applications comprising Mission Critical HDDs and SSDs; external storage solutions under the Seagate Ultra Touch, One Touch, and Expansion product lines, as well as under the LaCie brand name; desktop drives; notebook drives, DVR HDDs, and gaming SSDs. In addition, it provides Lyve edge-to-cloud mass capacity platform. The company sells its products primarily to OEMs, distributors, and retailers. Seagate Technology Holdings plc was founded in 1978 and is based in Dublin, Ireland.

STX (Seagate Technology Holdings plc) trades in the Technology sector, specifically Computer Hardware, with a market capitalization of approximately $183.27B, a trailing P/E of 75.96, a beta of 2.01 versus the broader market, a 52-week range of 103.73-841.31, average daily share volume of 4.0M, a public-listing history dating back to 2002, approximately 30K full-time employees. These structural characteristics shape how STX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.01 indicates STX 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 75.96 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. STX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on STX?

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 STX snapshot

As of May 15, 2026, spot at $797.78, ATM IV 79.91%, IV rank 87.83%, expected move 22.91%. The collar on STX 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 28-day expiry.

Why this collar structure on STX specifically: IV regime affects collar pricing on both sides; elevated STX IV at 79.91% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.91% (roughly $182.78 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STX expiries trade a higher absolute premium for lower per-day decay. Position sizing on STX should anchor to the underlying notional of $797.78 per share and to the trader's directional view on STX stock.

STX collar setup

The STX 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 STX near $797.78, the first option leg uses a $840.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STX chain at a 28-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 STX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$797.78	long
Sell 1	Call	$840.00	$54.45
Buy 1	Put	$760.00	$50.10

STX collar risk and reward

Net Premium / Debit: -$79,343.00
Max Profit (per contract): $4,657.00
Max Loss (per contract): -$3,343.00
Breakeven(s): $793.43
Risk / Reward Ratio: 1.393

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.

STX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on STX. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$3,343.00
$176.40	-77.9%	-$3,343.00
$352.79	-55.8%	-$3,343.00
$529.19	-33.7%	-$3,343.00
$705.58	-11.6%	-$3,343.00
$881.97	+10.6%	+$4,657.00
$1,058.36	+32.7%	+$4,657.00
$1,234.76	+54.8%	+$4,657.00
$1,411.15	+76.9%	+$4,657.00
$1,587.54	+99.0%	+$4,657.00

When traders use collar on STX

Collars on STX hedge an existing long STX 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.

STX thesis for this collar

The market-implied 1-standard-deviation range for STX extends from approximately $615.00 on the downside to $980.56 on the upside. A STX collar hedges an existing long STX 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 STX IV rank near 87.83% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on STX at 79.91%. As a Technology name, STX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STX-specific events.

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

Frequently asked questions

What is a collar on STX?: A collar on STX is the collar strategy applied to STX (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 STX stock trading near $797.78, the strikes shown on this page are snapped to the nearest listed STX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are STX 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 STX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 79.91%), the computed maximum profit is $4,657.00 per contract and the computed maximum loss is -$3,343.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a STX collar?: The breakeven for the STX collar priced on this page is roughly $793.43 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 STX market-implied 1-standard-deviation expected move is approximately 22.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on STX?: Collars on STX hedge an existing long STX 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 STX implied volatility affect this collar?: STX ATM IV is at 79.91% with IV rank near 87.83%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.