How are UCTT 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 UCTT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 101.50%), the computed maximum profit is $542.00 per contract and the computed maximum loss is -$458.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UCTT collar?

The breakeven for the UCTT collar priced on this page is roughly $129.58 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 UCTT market-implied 1-standard-deviation expected move is approximately 29.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UCTT implied volatility affect this collar?

UCTT ATM IV is at 101.50% with IV rank near 62.31%, 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.

UCTT Collar Strategy

UCTT (Ultra Clean Holdings, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.

Ultra Clean Holdings, Inc. specializes in providing essential subsystems, intricate components, precision parts, and rigorous ultra-high purity cleaning and sophisticated analytical verification services. The company primarily caters to the global semiconductor sector, operating across the U.S. and internationally. Their extensive product portfolio includes ultra-clean valves, high-purity and industrial process connectors, pneumatic actuators, manifolds, safety solutions, hoses, pressure gauges, and heaters for gas lines and components. They also supply specialized chemical delivery modules engineered to transport gases and reactive chemicals in liquid or gaseous forms from a central point to reaction chambers. Furthermore, they offer comprehensive gas delivery systems, encompassing weldments, filters, precise mass flow controllers, regulators, pressure transducers, various valves, component heaters, and integrated electronic or pneumatic control systems. Ultra Clean Holdings also provides a range of industrial and automation production machinery, alongside fluid delivery systems that incorporate multiple chemical delivery units, PFA tubing, filters, flow controllers, regulators, component heaters, and integrated electronic/pneumatic controls.

UCTT (Ultra Clean Holdings, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $5.33B, a beta of 1.95 versus the broader market, a 52-week range of 21.28-125, average daily share volume of 1.2M, a public-listing history dating back to 2004, approximately 7K full-time employees. These structural characteristics shape how UCTT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.95 indicates UCTT 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 UCTT?

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 UCTT snapshot

As of June 29, 2026, spot at $130.13, ATM IV 101.50%, IV rank 62.31%, expected move 29.10%. The collar on UCTT 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 18-day expiry.

Why this collar structure on UCTT specifically: IV regime affects collar pricing on both sides; mid-range UCTT IV at 101.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.10% (roughly $37.87 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UCTT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UCTT should anchor to the underlying notional of $130.13 per share and to the trader's directional view on UCTT stock.

UCTT collar setup

The UCTT 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 UCTT near $130.13, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UCTT chain at a 18-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 UCTT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$130.13	long
Sell 1	Call	$135.00	$9.65
Buy 1	Put	$125.00	$9.10

UCTT collar risk and reward

Net Premium / Debit: -$12,958.00
Max Profit (per contract): $542.00
Max Loss (per contract): -$458.00
Breakeven(s): $129.58
Risk / Reward Ratio: 1.183

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.

UCTT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on UCTT. 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%	-$458.00
$28.78	-77.9%	-$458.00
$57.55	-55.8%	-$458.00
$86.32	-33.7%	-$458.00
$115.10	-11.6%	-$458.00
$143.87	+10.6%	+$542.00
$172.64	+32.7%	+$542.00
$201.41	+54.8%	+$542.00
$230.18	+76.9%	+$542.00
$258.95	+99.0%	+$542.00

When traders use collar on UCTT

Collars on UCTT hedge an existing long UCTT 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.

UCTT thesis for this collar

The market-implied 1-standard-deviation range for UCTT extends from approximately $92.26 on the downside to $168.00 on the upside. A UCTT collar hedges an existing long UCTT 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 UCTT IV rank near 62.31% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UCTT should anchor more to the directional view and the expected-move geometry. As a Technology name, UCTT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UCTT-specific events.

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

Frequently asked questions

What is a collar on UCTT?: A collar on UCTT is the collar strategy applied to UCTT (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 UCTT stock trading near $130.13, the strikes shown on this page are snapped to the nearest listed UCTT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UCTT 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 UCTT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 101.50%), the computed maximum profit is $542.00 per contract and the computed maximum loss is -$458.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UCTT collar?: The breakeven for the UCTT collar priced on this page is roughly $129.58 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 UCTT market-implied 1-standard-deviation expected move is approximately 29.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on UCTT?: Collars on UCTT hedge an existing long UCTT 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 UCTT implied volatility affect this collar?: UCTT ATM IV is at 101.50% with IV rank near 62.31%, 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.