How are THO 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 THO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 56.70%), the computed maximum profit is $567.00 per contract and the computed maximum loss is -$433.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a THO collar?

The breakeven for the THO collar priced on this page is roughly $74.33 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 THO market-implied 1-standard-deviation expected move is approximately 16.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current THO implied volatility affect this collar?

THO ATM IV is at 56.70% with IV rank near 76.64%, 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.

THO Collar Strategy

THO (Thor Industries, Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Thor Industries, Inc. designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories in the United States, Canada, and Europe. The company offers travel trailers; gasoline and diesel Class A, Class B, and Class C motorhomes; conventional travel trailers and fifth wheels; luxury fifth wheels; and motorcaravans, caravans, campervans, and urban vehicles. It also provides aluminum extrusion and specialized component products to RV and other manufacturers; and digital products and services for RVs. The company provides its products through independent and non-franchise dealers. The company was founded in 1980 and is based in Elkhart, Indiana.

THO (Thor Industries, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $3.94B, a trailing P/E of 13.13, a beta of 1.34 versus the broader market, a 52-week range of 72.82-122.83, average daily share volume of 773K, a public-listing history dating back to 1984, approximately 22K full-time employees. These structural characteristics shape how THO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.34 indicates THO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. THO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on THO?

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 THO snapshot

As of May 15, 2026, spot at $74.08, ATM IV 56.70%, IV rank 76.64%, expected move 16.26%. The collar on THO 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 THO specifically: IV regime affects collar pricing on both sides; elevated THO IV at 56.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.26% (roughly $12.04 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 THO expiries trade a higher absolute premium for lower per-day decay. Position sizing on THO should anchor to the underlying notional of $74.08 per share and to the trader's directional view on THO stock.

THO collar setup

The THO 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 THO near $74.08, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed THO 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 THO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$74.08	long
Sell 1	Call	$80.00	$2.90
Buy 1	Put	$70.00	$3.15

THO collar risk and reward

Net Premium / Debit: -$7,433.00
Max Profit (per contract): $567.00
Max Loss (per contract): -$433.00
Breakeven(s): $74.33
Risk / Reward Ratio: 1.309

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.

THO collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on THO. 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%	-$433.00
$16.39	-77.9%	-$433.00
$32.77	-55.8%	-$433.00
$49.15	-33.7%	-$433.00
$65.52	-11.6%	-$433.00
$81.90	+10.6%	+$567.00
$98.28	+32.7%	+$567.00
$114.66	+54.8%	+$567.00
$131.04	+76.9%	+$567.00
$147.42	+99.0%	+$567.00

When traders use collar on THO

Collars on THO hedge an existing long THO 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.

THO thesis for this collar

The market-implied 1-standard-deviation range for THO extends from approximately $62.04 on the downside to $86.12 on the upside. A THO collar hedges an existing long THO 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 THO IV rank near 76.64% 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 THO at 56.70%. As a Consumer Cyclical name, THO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to THO-specific events.

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

Frequently asked questions

What is a collar on THO?: A collar on THO is the collar strategy applied to THO (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 THO stock trading near $74.08, the strikes shown on this page are snapped to the nearest listed THO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are THO 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 THO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 56.70%), the computed maximum profit is $567.00 per contract and the computed maximum loss is -$433.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a THO collar?: The breakeven for the THO collar priced on this page is roughly $74.33 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 THO market-implied 1-standard-deviation expected move is approximately 16.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on THO?: Collars on THO hedge an existing long THO 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 THO implied volatility affect this collar?: THO ATM IV is at 56.70% with IV rank near 76.64%, 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.