Collar
intermediateneutralStrategy parameters
Greeks (current)
Delta
43.734
Gamma
-0.456
Theta
1.252
Vega
-1.125
Rho
-4.596
Payoff diagram
P&L at expiryP&L today (theoretical)Current spot
Key metrics
Net cost
$9,964.82
Debit (paid)
Max profit
$535.18
Max loss
-$464.82
Breakevens
$99.65
Scenarios at expiry
| Move | Spot | P&L at expiry | % of cost |
|---|---|---|---|
| -20% | $80.00 | -$464.82 | -4.7% |
| -10% | $90.00 | -$464.82 | -4.7% |
| -5% | $95.00 | -$464.82 | -4.7% |
| +0% | $100.00 | $35.18 | 0.4% |
| +5% | $105.00 | $535.18 | 5.4% |
| +10% | $110.00 | $535.18 | 5.4% |
| +20% | $120.00 | $535.18 | 5.4% |
Mechanics & risks
How it works
Long stock + long OTM put + short OTM call. The short call funds the protective put. Caps both upside and downside.
When to use
You want to lock in gains on a stock you own without selling.
Risks
- Upside is capped at the call strike.
- Downside is floored at the put strike (minus net debit/credit).