How are UAN 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 UAN collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.50%), the computed maximum profit is $759.00 per contract and the computed maximum loss is -$741.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UAN collar?

The breakeven for the UAN collar priced on this page is roughly $122.41 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UAN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UAN implied volatility affect this collar?

UAN ATM IV is at 47.50% with IV rank near 15.63%, 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.

UAN Collar Strategy

UAN (CVR Partners, LP), in the Basic Materials sector, (Agricultural Inputs industry), listed on NYSE.

Operating alongside its subsidiaries, CVR Partners, LP focuses on the production and distribution of nitrogen fertilizers across the United States. The company supplies ammonia to both agricultural and industrial clients. Furthermore, it provides urea and ammonium nitrate primarily to agricultural customers, as well as to retailers and distributors. CVR GP, LLC acts as the general partner for the organization. CVR Partners, LP was established in 2007 and is based in Sugar Land, Texas.

UAN (CVR Partners, LP) trades in the Basic Materials sector, specifically Agricultural Inputs, with a market capitalization of approximately $1.26B, a trailing P/E of 7.89, a beta of 0.15 versus the broader market, a 52-week range of 84.13-139.5, average daily share volume of 60K, a public-listing history dating back to 2011, approximately 320 full-time employees. These structural characteristics shape how UAN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.15 indicates UAN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.89 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. UAN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on UAN?

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.

UAN snapshot

As of August 14, 2026, spot at $122.51, ATM IV 47.50%, IV rank 15.63%, expected move 13.62%. The collar on UAN below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on UAN specifically: IV regime affects collar pricing on both sides; compressed UAN IV at 47.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.62% (roughly $16.68 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UAN expiries trade a higher absolute premium for lower per-day decay. Position sizing on UAN should anchor to the underlying notional of $122.51 per share and to the trader's directional view on UAN stock.

UAN collar setup

The UAN collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With UAN at $122.51 on that close, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UAN chain at a 35-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 UAN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$122.51	long
Sell 1	Call	$130.00	$4.10
Buy 1	Put	$115.00	$4.00

UAN collar risk and reward

Net Premium / Debit: -$12,241.00
Max Profit (per contract): $759.00
Max Loss (per contract): -$741.00
Breakeven(s): $122.41
Risk / Reward Ratio: 1.024

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.

UAN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on UAN. 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%	-$741.00
$27.10	-77.9%	-$741.00
$54.18	-55.8%	-$741.00
$81.27	-33.7%	-$741.00
$108.36	-11.6%	-$741.00
$135.44	+10.6%	+$759.00
$162.53	+32.7%	+$759.00
$189.62	+54.8%	+$759.00
$216.70	+76.9%	+$759.00
$243.79	+99.0%	+$759.00

When traders use collar on UAN

Collars on UAN hedge an existing long UAN 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.

UAN thesis for this collar

The market-implied 1-standard-deviation range for UAN extends from approximately $105.83 on the downside to $139.19 on the upside. A UAN collar hedges an existing long UAN 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 UAN IV rank near 15.63% 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 UAN at 47.50%. As a Basic Materials name, UAN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UAN-specific events.

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

Frequently asked questions

What is a collar on UAN?: A collar on UAN is the collar strategy applied to UAN (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 UAN stock at $122.51 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UAN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are UAN 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 UAN collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.50%), the computed maximum profit is $759.00 per contract and the computed maximum loss is -$741.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UAN collar?: The breakeven for the UAN collar priced on this page is roughly $122.41 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The UAN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on UAN?: Collars on UAN hedge an existing long UAN 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 UAN implied volatility affect this collar?: UAN ATM IV is at 47.50% with IV rank near 15.63%, 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.