How are WBS 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 WBS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 12.10%), the computed maximum profit is $411.00 per contract and the computed maximum loss is -$339.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WBS collar?

The breakeven for the WBS collar priced on this page is roughly $75.89 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 WBS market-implied 1-standard-deviation expected move is approximately 3.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WBS implied volatility affect this collar?

WBS ATM IV is at 12.10% with IV rank near 1.34%, 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.

WBS Collar Strategy

WBS (Webster Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.

Webster Financial Corporation functions as the parent entity for Webster Bank, National Association, providing a comprehensive suite of banking, investment, and financial services throughout the United States. Its offerings cater to a diverse clientele, including individual consumers, families, and businesses. The company's operations are divided into three primary divisions: 1. Commercial Banking: This segment delivers core services such as lending, deposit management, and advanced cash management solutions. Its specialized financial products include commercial and industrial loans and leasing, commercial real estate financing, equipment and asset-based lending, along with treasury and payment services. Additionally, it offers extensive wealth management options, including trust services, asset management, financial planning, insurance, retirement solutions, and investment products for business owners, operators, and individual clients. 2.

WBS (Webster Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $12.25B, a trailing P/E of 11.80, a beta of 1.01 versus the broader market, a 52-week range of 52.69-76.13, average daily share volume of 3.2M, a public-listing history dating back to 1986, approximately 4K full-time employees. These structural characteristics shape how WBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.01 places WBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.80 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. WBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on WBS?

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 WBS snapshot

As of June 29, 2026, spot at $75.87, ATM IV 12.10%, IV rank 1.34%, expected move 3.47%. The collar on WBS 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 WBS specifically: IV regime affects collar pricing on both sides; compressed WBS IV at 12.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.47% (roughly $2.63 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 WBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WBS should anchor to the underlying notional of $75.87 per share and to the trader's directional view on WBS stock.

WBS collar setup

The WBS 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 WBS near $75.87, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WBS 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 WBS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$75.87	long
Sell 1	Call	$80.00	$0.18
Buy 1	Put	$72.50	$0.20

WBS collar risk and reward

Net Premium / Debit: -$7,589.00
Max Profit (per contract): $411.00
Max Loss (per contract): -$339.00
Breakeven(s): $75.89
Risk / Reward Ratio: 1.212

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.

WBS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on WBS. 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%	-$339.00
$16.78	-77.9%	-$339.00
$33.56	-55.8%	-$339.00
$50.33	-33.7%	-$339.00
$67.11	-11.6%	-$339.00
$83.88	+10.6%	+$411.00
$100.66	+32.7%	+$411.00
$117.43	+54.8%	+$411.00
$134.20	+76.9%	+$411.00
$150.98	+99.0%	+$411.00

When traders use collar on WBS

Collars on WBS hedge an existing long WBS 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.

WBS thesis for this collar

The market-implied 1-standard-deviation range for WBS extends from approximately $73.24 on the downside to $78.50 on the upside. A WBS collar hedges an existing long WBS 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 WBS IV rank near 1.34% 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 WBS at 12.10%. As a Financial Services name, WBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WBS-specific events.

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

Frequently asked questions

What is a collar on WBS?: A collar on WBS is the collar strategy applied to WBS (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 WBS stock trading near $75.87, the strikes shown on this page are snapped to the nearest listed WBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WBS 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 WBS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 12.10%), the computed maximum profit is $411.00 per contract and the computed maximum loss is -$339.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WBS collar?: The breakeven for the WBS collar priced on this page is roughly $75.89 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 WBS market-implied 1-standard-deviation expected move is approximately 3.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on WBS?: Collars on WBS hedge an existing long WBS 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 WBS implied volatility affect this collar?: WBS ATM IV is at 12.10% with IV rank near 1.34%, 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.