Compare the downside protection and capped upside of a stock position with a put and a sold call.
Your position
Illustrative starting values · USD
Use one stock or ETF and the same expiration for every option leg. Prices are per share.
Modified position
Stock quantities are shares. Option quantities are contracts. Enter the total fees for the entire position once.
Net entry cost
Maximum profit
Maximum loss
Breakeven stock price
Profit / loss at expiration
Entire position · Includes entered fees
Move over the chart or adjust the stock price to inspect a scenario. Shading marks profit and loss.
What if the stock ends at…
Profit / loss at expiration
View payoff table
Sample outcomes at expiration, including strike and breakeven prices
Stock price
Profit / loss
Maximum profit and loss consider all stock prices from zero upward, including prices outside the chart. Results use the legs entered; editing a strategy can change its risk.
How to use the collar calculator
Own shares, buy a lower-strike put and sell a higher-strike call. Match both option quantities to the shares and use one expiration. Equal put and call premiums create a zero-premium-cost collar before fees; the stock still requires capital.
Understanding the payoff
For matched shares and contracts with the strikes surrounding stock cost, net option debit = put premium − call premium. Maximum loss per share = stock cost + net debit − put strike. Maximum profit per share = call strike − stock cost − net debit. Breakeven = stock cost + net debit when it lies between the strikes.
These formulas describe the standard strategy before fees. The results above include the total fees entered and are calculated from your actual legs.
Worked example
Own 100 shares bought at $100, buy a $95 put for $2 and sell a $105 call for $2. Maximum loss and maximum profit are each $500 before fees; breakeven is $100.
This is an expiration payoff estimate, not a live option quote or a prediction. It assumes all option legs expire together on one stock or ETF, the stock price cannot be negative, and options settle at intrinsic value. The default multiplier is 100 shares per contract; adjust it for the contract being modeled. Early assignment, exercise decisions, dividends, interest, taxes, and slippage can change realized results. Cash requirements and broker margin are separate from maximum loss. Different expirations, futures options, and adjusted contracts with non-cash deliverables are not supported.
Method: add each leg’s intrinsic value at expiration, subtract its entry cost with the correct buy/sell sign, and subtract total fees. See OIC strategy guides for further explanation.
