How are TH 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 TH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $104.50 per contract and the computed maximum loss is -$95.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TH collar?

The breakeven for the TH collar priced on this page is roughly $18.96 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 TH market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TH implied volatility affect this collar?

TH ATM IV is at 53.10% with IV rank near 30.39%, 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.

TH Collar Strategy

TH (Target Hospitality Corp.), in the Industrials sector, (Specialty Business Services industry), listed on NASDAQ.

Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through four segments: Hospitality & Facilities Services - South, Hospitality & Facilities Services - Midwest, Government, and TCPL Keystone. It owns a network of specialty rental accommodation units with approximately 15,528 beds across 27 communities, which include 26 owned and 1 leased; and operates 1 community not owned or leased by the company. Target Hospitality Corp. also provides catering and food, maintenance, housekeeping, grounds-keeping, security, health and recreation, workforce community management, concierge, and laundry services. It serves the U.S. government, government contractors, investment grade natural resource development companies, and energy infrastructure companies. The company was founded in 1978 and is headquartered in The Woodlands, Texas.

TH (Target Hospitality Corp.) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $1.75B, a beta of 1.44 versus the broader market, a 52-week range of 5.97-18.34, average daily share volume of 1.1M, a public-listing history dating back to 2018, approximately 770 full-time employees. These structural characteristics shape how TH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.44 indicates TH 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 TH?

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 TH snapshot

As of May 15, 2026, spot at $18.73, ATM IV 53.10%, IV rank 30.39%, expected move 15.22%. The collar on TH 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 34-day expiry.

Why this collar structure on TH specifically: IV regime affects collar pricing on both sides; mid-range TH IV at 53.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.22% (roughly $2.85 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TH should anchor to the underlying notional of $18.73 per share and to the trader's directional view on TH stock.

TH collar setup

The TH 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 TH near $18.73, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TH chain at a 34-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 TH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$18.73	long
Sell 1	Call	$20.00	$0.63
Buy 1	Put	$18.00	$0.85

TH collar risk and reward

Net Premium / Debit: -$1,895.50
Max Profit (per contract): $104.50
Max Loss (per contract): -$95.50
Breakeven(s): $18.96
Risk / Reward Ratio: 1.094

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.

TH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TH. 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	-99.9%	-$95.50
$4.15	-77.8%	-$95.50
$8.29	-55.7%	-$95.50
$12.43	-33.6%	-$95.50
$16.57	-11.5%	-$95.50
$20.71	+10.6%	+$104.50
$24.85	+32.7%	+$104.50
$28.99	+54.8%	+$104.50
$33.13	+76.9%	+$104.50
$37.27	+99.0%	+$104.50

When traders use collar on TH

Collars on TH hedge an existing long TH 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.

TH thesis for this collar

The market-implied 1-standard-deviation range for TH extends from approximately $15.88 on the downside to $21.58 on the upside. A TH collar hedges an existing long TH 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 TH IV rank near 30.39% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TH should anchor more to the directional view and the expected-move geometry. As a Industrials name, TH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TH-specific events.

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

Frequently asked questions

What is a collar on TH?: A collar on TH is the collar strategy applied to TH (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 TH stock trading near $18.73, the strikes shown on this page are snapped to the nearest listed TH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TH 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 TH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $104.50 per contract and the computed maximum loss is -$95.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TH collar?: The breakeven for the TH collar priced on this page is roughly $18.96 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 TH market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TH?: Collars on TH hedge an existing long TH 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 TH implied volatility affect this collar?: TH ATM IV is at 53.10% with IV rank near 30.39%, 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.