How are WGO 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 WGO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.30%), the computed maximum profit is $123.50 per contract and the computed maximum loss is -$126.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WGO collar?

The breakeven for the WGO collar priced on this page is roughly $28.77 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 WGO market-implied 1-standard-deviation expected move is approximately 14.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WGO implied volatility affect this collar?

WGO ATM IV is at 49.30% with IV rank near 42.51%, 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.

WGO Collar Strategy

WGO (Winnebago Industries, Inc.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.

Winnebago Industries, Inc. manufactures and sells recreation vehicles and marine products primarily for use in leisure travel and outdoor recreation activities. The company operates in six segments: Grand Design Towables, Winnebago Towables, Winnebago Motorhomes, Newmar motorhomes, Chris-Craft Marine, and Winnebago Specialty Vehicles. It provides towable products that are non-motorized vehicles to be towed by automobiles, pickup trucks, SUVs, or vans for use as temporary living quarters for recreational travel, such as conventional travel trailers, fifth wheels, folding camper trailers, and truck campers under the Winnebago and Grand Design brand names. The company also offers motorhomes, which are self-propelled mobile dwellings used primarily as temporary living quarters during vacation and camping trips, or to support active and mobile lifestyles under the Winnebago and Newmar brand names. In addition, it offers other specialty commercial vehicles for law enforcement command centers, mobile medical clinics, and mobile office spaces; commercial vehicles as bare shells to third-party up fitters; and boats in the recreational powerboat industry under the Chris-Craft and Barletta brand names. Further, the company is involved in the original equipment manufacturing of parts for other manufacturers and commercial vehicles.

WGO (Winnebago Industries, Inc.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $825.9M, a trailing P/E of 19.81, a beta of 1.17 versus the broader market, a 52-week range of 28-50.16, average daily share volume of 622K, a public-listing history dating back to 1970, approximately 6K full-time employees. These structural characteristics shape how WGO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.17 places WGO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WGO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on WGO?

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 WGO snapshot

As of May 15, 2026, spot at $29.04, ATM IV 49.30%, IV rank 42.51%, expected move 14.13%. The collar on WGO 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 63-day expiry.

Why this collar structure on WGO specifically: IV regime affects collar pricing on both sides; mid-range WGO IV at 49.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.13% (roughly $4.10 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated WGO expiries trade a higher absolute premium for lower per-day decay. Position sizing on WGO should anchor to the underlying notional of $29.04 per share and to the trader's directional view on WGO stock.

WGO collar setup

The WGO 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 WGO near $29.04, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WGO chain at a 63-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 WGO shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$29.04	long
Sell 1	Call	$30.00	$2.18
Buy 1	Put	$27.50	$1.90

WGO collar risk and reward

Net Premium / Debit: -$2,876.50
Max Profit (per contract): $123.50
Max Loss (per contract): -$126.50
Breakeven(s): $28.77
Risk / Reward Ratio: 0.976

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.

WGO collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on WGO. 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.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$126.50
$6.43	-77.9%	-$126.50
$12.85	-55.8%	-$126.50
$19.27	-33.6%	-$126.50
$25.69	-11.5%	-$126.50
$32.11	+10.6%	+$123.50
$38.53	+32.7%	+$123.50
$44.95	+54.8%	+$123.50
$51.37	+76.9%	+$123.50
$57.79	+99.0%	+$123.50

When traders use collar on WGO

Collars on WGO hedge an existing long WGO 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.

WGO thesis for this collar

The market-implied 1-standard-deviation range for WGO extends from approximately $24.94 on the downside to $33.14 on the upside. A WGO collar hedges an existing long WGO 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 WGO IV rank near 42.51% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on WGO should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, WGO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WGO-specific events.

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

Frequently asked questions

What is a collar on WGO?: A collar on WGO is the collar strategy applied to WGO (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 WGO stock trading near $29.04, the strikes shown on this page are snapped to the nearest listed WGO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WGO 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 WGO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.30%), the computed maximum profit is $123.50 per contract and the computed maximum loss is -$126.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WGO collar?: The breakeven for the WGO collar priced on this page is roughly $28.77 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 WGO market-implied 1-standard-deviation expected move is approximately 14.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on WGO?: Collars on WGO hedge an existing long WGO 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 WGO implied volatility affect this collar?: WGO ATM IV is at 49.30% with IV rank near 42.51%, 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.