How are UNFI 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 UNFI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 39.70%), the computed maximum profit is $203.50 per contract and the computed maximum loss is -$196.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a UNFI collar?

The breakeven for the UNFI collar priced on this page is roughly $45.96 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 UNFI market-implied 1-standard-deviation expected move is approximately 11.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current UNFI implied volatility affect this collar?

UNFI ATM IV is at 39.70% with IV rank near 10.34%, 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.

UNFI Collar Strategy

UNFI (United Natural Foods, Inc.), in the Consumer Defensive sector, (Food Distribution industry), listed on NYSE.

United Natural Foods, Inc. (UNFI), founded in 1976 and based in Providence, Rhode Island, functions as a prominent distributor of a wide spectrum of products across the United States and Canada. The company supplies natural, organic, and specialty items, alongside conventional grocery staples, fresh produce, and non-food merchandise, operating through two primary business divisions: Wholesale and Retail. Its extensive product portfolio features general groceries, fresh produce, perishable and frozen goods, nutritional and sports supplements, bulk and foodservice provisions, and personal care articles. Beyond merely distribution, UNFI also actively imports, roasts, packages, and disseminates various nuts, dried fruits, seeds, trail mixes, granolas, and a range of natural and organic snack items and confections, notably under its Woodstock brand. UNFI also manages other proprietary brands, such as Blue Marble Brands, which are made available through its wholesale segment, third-party distributors, and direct sales to retailers. Its Field Day brand products are primarily targeted at customers within the independent retail channel.

UNFI (United Natural Foods, Inc.) trades in the Consumer Defensive sector, specifically Food Distribution, with a market capitalization of approximately $2.97B, a beta of 0.82 versus the broader market, a 52-week range of 22.12-57.02, average daily share volume of 660K, a public-listing history dating back to 1996, approximately 28K full-time employees. These structural characteristics shape how UNFI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.82 places UNFI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on UNFI?

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 UNFI snapshot

As of June 29, 2026, spot at $46.14, ATM IV 39.70%, IV rank 10.34%, expected move 11.38%. The collar on UNFI 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 UNFI specifically: IV regime affects collar pricing on both sides; compressed UNFI IV at 39.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.38% (roughly $5.25 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 UNFI expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNFI should anchor to the underlying notional of $46.14 per share and to the trader's directional view on UNFI stock.

UNFI collar setup

The UNFI 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 UNFI near $46.14, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNFI 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 UNFI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$46.14	long
Sell 1	Call	$48.00	$0.83
Buy 1	Put	$44.00	$0.65

UNFI collar risk and reward

Net Premium / Debit: -$4,596.50
Max Profit (per contract): $203.50
Max Loss (per contract): -$196.50
Breakeven(s): $45.96
Risk / Reward Ratio: 1.036

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.

UNFI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on UNFI. 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%	-$196.50
$10.21	-77.9%	-$196.50
$20.41	-55.8%	-$196.50
$30.61	-33.7%	-$196.50
$40.81	-11.5%	-$196.50
$51.01	+10.6%	+$203.50
$61.21	+32.7%	+$203.50
$71.41	+54.8%	+$203.50
$81.62	+76.9%	+$203.50
$91.82	+99.0%	+$203.50

When traders use collar on UNFI

Collars on UNFI hedge an existing long UNFI 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.

UNFI thesis for this collar

The market-implied 1-standard-deviation range for UNFI extends from approximately $40.89 on the downside to $51.39 on the upside. A UNFI collar hedges an existing long UNFI 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 UNFI IV rank near 10.34% 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 UNFI at 39.70%. As a Consumer Defensive name, UNFI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNFI-specific events.

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

Frequently asked questions

What is a collar on UNFI?: A collar on UNFI is the collar strategy applied to UNFI (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 UNFI stock trading near $46.14, the strikes shown on this page are snapped to the nearest listed UNFI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are UNFI 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 UNFI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 39.70%), the computed maximum profit is $203.50 per contract and the computed maximum loss is -$196.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a UNFI collar?: The breakeven for the UNFI collar priced on this page is roughly $45.96 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 UNFI market-implied 1-standard-deviation expected move is approximately 11.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on UNFI?: Collars on UNFI hedge an existing long UNFI 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 UNFI implied volatility affect this collar?: UNFI ATM IV is at 39.70% with IV rank near 10.34%, 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.