How are TPR 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 TPR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.99%), the computed maximum profit is $699.00 per contract and the computed maximum loss is -$651.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TPR collar?

The breakeven for the TPR collar priced on this page is roughly $145.51 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 TPR market-implied 1-standard-deviation expected move is approximately 10.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TPR implied volatility affect this collar?

TPR ATM IV is at 35.99% with IV rank near 22.56%, 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.

TPR Collar Strategy

TPR (Tapestry, Inc.), in the Consumer Cyclical sector, (Luxury Goods industry), listed on NYSE.

Tapestry, Inc. is a prominent global fashion house specializing in premium accessories and distinct lifestyle brands. It operates internationally, serving customers across the United States, Japan, Greater China, and other markets worldwide. The company's diverse portfolio is structured around three well-known brands: Coach, Kate Spade, and Stuart Weitzman. Tapestry offers an extensive product range catering to women, men, and even includes items for children and home goods. For women, this encompasses a vast selection of luxury accessories, including various handbag styles such as wallets, wristlets, and cosmetic cases, alongside unique novelty items like travel accessories, sketchbooks, and keychains. The collection further features footwear, eyewear, fine jewelry (bracelets, necklaces, rings, and earrings), fragrances, watches, and seasonal apparel, which covers outerwear, ready-to-wear collections, and cold-weather essentials like gloves, scarves, and hats.

TPR (Tapestry, Inc.) trades in the Consumer Cyclical sector, specifically Luxury Goods, with a market capitalization of approximately $29.50B, a trailing P/E of 44.61, a beta of 1.45 versus the broader market, a 52-week range of 84.39-161.97, average daily share volume of 2.3M, a public-listing history dating back to 2000, approximately 19K full-time employees. These structural characteristics shape how TPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.45 indicates TPR 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 44.61 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. TPR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on TPR?

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 TPR snapshot

As of June 30, 2026, spot at $146.16, ATM IV 35.99%, IV rank 22.56%, expected move 10.32%. The collar on TPR 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 31-day expiry.

Why this collar structure on TPR specifically: IV regime affects collar pricing on both sides; compressed TPR IV at 35.99% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.32% (roughly $15.08 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on TPR should anchor to the underlying notional of $146.16 per share and to the trader's directional view on TPR stock.

TPR collar setup

The TPR 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 TPR near $146.16, the first option leg uses a $152.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TPR chain at a 31-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 TPR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$146.16	long
Sell 1	Call	$152.50	$3.75
Buy 1	Put	$139.00	$3.10

TPR collar risk and reward

Net Premium / Debit: -$14,551.00
Max Profit (per contract): $699.00
Max Loss (per contract): -$651.00
Breakeven(s): $145.51
Risk / Reward Ratio: 1.074

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.

TPR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TPR. 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%	-$651.00
$32.33	-77.9%	-$651.00
$64.64	-55.8%	-$651.00
$96.96	-33.7%	-$651.00
$129.27	-11.6%	-$651.00
$161.59	+10.6%	+$699.00
$193.90	+32.7%	+$699.00
$226.22	+54.8%	+$699.00
$258.54	+76.9%	+$699.00
$290.85	+99.0%	+$699.00

When traders use collar on TPR

Collars on TPR hedge an existing long TPR 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.

TPR thesis for this collar

The market-implied 1-standard-deviation range for TPR extends from approximately $131.08 on the downside to $161.24 on the upside. A TPR collar hedges an existing long TPR 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 TPR IV rank near 22.56% 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 TPR at 35.99%. As a Consumer Cyclical name, TPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TPR-specific events.

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

Frequently asked questions

What is a collar on TPR?: A collar on TPR is the collar strategy applied to TPR (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 TPR stock trading near $146.16, the strikes shown on this page are snapped to the nearest listed TPR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TPR 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 TPR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.99%), the computed maximum profit is $699.00 per contract and the computed maximum loss is -$651.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TPR collar?: The breakeven for the TPR collar priced on this page is roughly $145.51 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 TPR market-implied 1-standard-deviation expected move is approximately 10.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TPR?: Collars on TPR hedge an existing long TPR 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 TPR implied volatility affect this collar?: TPR ATM IV is at 35.99% with IV rank near 22.56%, 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.