Options collar calculator

Calculate the expiration profit or loss of stock protected by a long put and capped by a short call. See net option cost, effective basis, break-even, protected floor, called-away value and the complete payoff range.

CurrencyFormatting only; no exchange-rate conversion.
Stock cost per shareYour purchase price or chosen comparison basis.
Stock price at expirationUse 0 to test complete downside.
Protective put strikeMust be lower than the covered call strike.
Put premium paid per share
Covered call strikeMust be higher than the protective put strike.
Call premium received per share
Number of collarsOne collar uses one put, one call and the covered shares.
Shares per option contractUS equity options commonly use 100; verify your contract.
Total feesEnter stock and option fees included in this comparison.

Profit / loss at expiration—

Net option cost / credit—

Effective stock basis—

Break-even at expiration—

Maximum profit—

Maximum loss—

Protected floor value—

Called-away value—

Return on effective outlay—

Stock price at expiration	Stock value	Put payoff	Call obligation	Collar profit / loss

How an options collar works

A collar combines long stock, a long protective put and a short covered call with the same expiration. The put establishes a minimum exit value while the call premium helps pay for that protection. In exchange, the short call caps the stock value at its strike if assigned.

This page consolidates collar, protective collar, collar option strategy, payoff, profit, loss and break-even calculations in one URL. A covered call alone does not include the protective put and therefore has different downside risk.

Collar profit and break-even formulas

Terminal collar value per share = min(max(stock price at expiration, put strike), call strike)

Profit = shares × [terminal collar value − stock cost − put premium + call premium] − fees

Effective basis = stock cost + put premium − call premium + fees ÷ shares
Maximum profit = shares × (call strike − effective basis)
Maximum loss = shares × (effective basis − put strike)

The effective basis is a break-even price only when it lies between the put and call strikes. If it lies below the put strike, every modeled expiration outcome is profitable; if it lies above the call strike, every modeled outcome is a loss.

Checked examples

Protected downside: stock cost US$100, expiration stock US$90, put strike US$95 with US$3 premium, call strike US$110 with US$2 premium, two collars of 100 shares and US$4 fees. The effective basis is US$101.02. The put protects a US$19,000 exit value, so the expiration loss and maximum loss are US$1,204.

Stock between the strikes: with the same inputs but expiration stock US$105, neither option has expiration value. Profit is US$796. The break-even is US$101.02 and maximum profit at or above the call strike is US$1,796.

How to interpret the results

Net option cost or credit equals the put premium paid minus call premium received, multiplied by shares, plus total fees. A negative amount is a net credit.
Protected floor value is the put strike multiplied by shares. It is the modeled terminal position value below the put strike, before comparing with initial outlay.
Called-away value is the call strike multiplied by shares. It is the modeled terminal position value at or above the call strike.
Return on effective outlay compares expiration profit or loss with stock cost plus net option cost and fees. It is not annualized.

Assumptions and limits

The calculator models expiration payoff. It excludes time value, early exercise, assignment before expiration, dividends, taxes, bid-ask spreads, borrowing costs and margin requirements.
The put strike must be below the call strike. Each collar covers the entered contract multiplier of shares, and premiums are entered per share.
The stock cost is a comparison basis entered by the user, not a live quote. A tax cost basis may differ after wash sales, prior premiums or corporate actions.
Results are educational estimates, not investment advice. Confirm contract specifications and assignment rules with your broker.

Related calculators

Use the Covered Call Calculator without a protective put; the Options Profit Calculator for one call or put; the Strangle Calculator for options without stock; and the Black-Scholes Calculator for theoretical European option value and Greeks.