How are UEC 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 UEC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 74.97%), the computed maximum profit is $41.00 per contract and the computed maximum loss is -$59.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UEC collar?

The breakeven for the UEC collar priced on this page is roughly $11.09 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 UEC market-implied 1-standard-deviation expected move is approximately 21.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UEC implied volatility affect this collar?

UEC ATM IV is at 74.97% with IV rank near 32.59%, 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.

UEC Collar Strategy

UEC (Uranium Energy Corp.), in the Energy sector, (Uranium industry), listed on AMEX.

Uranium Energy Corp. (UEC) and its subsidiaries are involved in every stage of the uranium and titanium concentrate production cycle, from initial exploration and preparatory work to extraction and final processing. These activities take place across the United States, Canada, and Paraguay. The company possesses ownership interests in various projects, including the Palangana mine, along with the Goliad, Burke Hollow, Longhorn, and Salvo projects, all located in Texas. Additional U.S. holdings comprise the Anderson, Workman Creek, and Los Cuatros projects in Arizona; the Slick Rock project in Colorado; and the Reno Creek project in Wyoming. Internationally, UEC operates the Diabase project in Canada and manages titanium-focused initiatives such as Yuty, Oviedo, and Alto Paraná in Paraguay. Established in 2003 under its previous name, Carlin Gold Inc., the company rebranded as Uranium Energy Corp. in January 2005 and maintains its principal offices in Corpus Christi, Texas.

UEC (Uranium Energy Corp.) trades in the Energy sector, specifically Uranium, with a market capitalization of approximately $5.34B, a beta of 1.15 versus the broader market, a 52-week range of 5.9-20.34, average daily share volume of 10.2M, a public-listing history dating back to 2007, approximately 94 full-time employees. These structural characteristics shape how UEC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.15 places UEC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on UEC?

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 UEC snapshot

As of June 29, 2026, spot at $10.89, ATM IV 74.97%, IV rank 32.59%, expected move 21.49%. The collar on UEC 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 32-day expiry.

Why this collar structure on UEC specifically: IV regime affects collar pricing on both sides; mid-range UEC IV at 74.97% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.49% (roughly $2.34 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UEC expiries trade a higher absolute premium for lower per-day decay. Position sizing on UEC should anchor to the underlying notional of $10.89 per share and to the trader's directional view on UEC stock.

UEC collar setup

The UEC 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 UEC near $10.89, the first option leg uses a $11.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UEC chain at a 32-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 UEC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$10.89	long
Sell 1	Call	$11.50	$0.66
Buy 1	Put	$10.50	$0.86

UEC collar risk and reward

Net Premium / Debit: -$1,109.00
Max Profit (per contract): $41.00
Max Loss (per contract): -$59.00
Breakeven(s): $11.09
Risk / Reward Ratio: 0.695

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.

UEC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on UEC. 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	-99.9%	-$59.00
$2.42	-77.8%	-$59.00
$4.82	-55.7%	-$59.00
$7.23	-33.6%	-$59.00
$9.64	-11.5%	-$59.00
$12.04	+10.6%	+$41.00
$14.45	+32.7%	+$41.00
$16.86	+54.8%	+$41.00
$19.26	+76.9%	+$41.00
$21.67	+99.0%	+$41.00

When traders use collar on UEC

Collars on UEC hedge an existing long UEC 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.

UEC thesis for this collar

The market-implied 1-standard-deviation range for UEC extends from approximately $8.55 on the downside to $13.23 on the upside. A UEC collar hedges an existing long UEC 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 UEC IV rank near 32.59% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UEC should anchor more to the directional view and the expected-move geometry. As a Energy name, UEC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UEC-specific events.

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

Frequently asked questions

What is a collar on UEC?: A collar on UEC is the collar strategy applied to UEC (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 UEC stock trading near $10.89, the strikes shown on this page are snapped to the nearest listed UEC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UEC 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 UEC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 74.97%), the computed maximum profit is $41.00 per contract and the computed maximum loss is -$59.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UEC collar?: The breakeven for the UEC collar priced on this page is roughly $11.09 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 UEC market-implied 1-standard-deviation expected move is approximately 21.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on UEC?: Collars on UEC hedge an existing long UEC 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 UEC implied volatility affect this collar?: UEC ATM IV is at 74.97% with IV rank near 32.59%, 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.