Grizzly Bulls

Collar Calculator

Model a long stock position protected by a put and capped by a covered call: net option cost or credit, downside floor, upside cap, breakeven, and expiration scenarios.

Stock and contract assumptions

The calculator measures expiration P&L forward from this entered stock mark, not from historical tax basis.
100 is standard for most listed U.S. equity options. The same represented share count is used for the stock, put, and call.
This first release models a traditional same-expiration collar.

Put floor and call cap

Collar summary

$10,000Current represented stock value
$200Protective-put premium paid
$200Covered-call premium received
$0Net option cash flow (credit positive)
$90.00Downside floor strike
$110.00Upside cap strike
$100.00Expiration breakeven between strikes
-$1,000Minimum expiration P&L from current mark
$1,000Maximum expiration P&L from current mark
-10%Minimum expiration return on current stock value
10%Maximum expiration return on current stock value
0%Net option cash flow / current stock value

This models exactly 100 shares, one protective-put share for each stock share, and one covered-call share for each stock share. The put and call must use the same expiration, and the put strike must be below the call strike.

Expiration payoff scenarios

Below the put strike, the long put establishes the downside floor. Between the strikes, the collar moves one-for-one with the stock aside from the net option premium. Above the call strike, the short call offsets additional stock appreciation and caps the position.

Stock at expirationRegionStock-only P&LPut payoffCall obligationCollar P&LCollar vs. stock
$0.00Put floor-$10,000$9,000$0-$1,000$9,000
$90.00Put floor-$1,000$0$0-$1,000$0
$100.00Between strikes$0$0$0$0$0
$110.00Call cap$1,000$0$0$1,000$0
$132.00Call cap$3,200$0$2,200$1,000-$2,200

The put buys a floor; the call helps pay for it by selling upside

A traditional collar combines a protective put and a covered call on the same long stock position. The put limits downside below its strike, while the short call limits upside above its strike. The call premium can offset some or all of the put premium, but a low or zero net option cost does not make the strategy economically free: upside is still surrendered above the call strike.

Net option cash flow = call premium received − put premium paid
Middle-region breakeven = current stock price − net option premium per share
Minimum expiration P&L = collar P&L at the put strike
Maximum expiration P&L= collar P&L at the call strike

If the mathematical middle-region breakeven falls outside the put-to-call interval, the calculator reports no in-band breakeven instead of displaying a stock price where the collar cannot actually reach zero P&L.

Where this calculator stops

This is expiration payoff math. It does not estimate option fair value, implied volatility, Greeks, probability of profit, probability of exercise or assignment, expected return, or a recommended put strike, call strike, expiration, or stock. It does not fetch an option chain or live stock price.

Listed U.S. equity options are generally American-style, so the short call can be assigned before expiration and the long put can be exercised before expiration. This calculator does not model early exercise or assignment, dividends or ex-dividend incentives, time value before expiration, rolling, closing trades early, bid-ask spreads, commissions, taxes, margin, or buying power.

Use the Protective Put Calculator when you only want the downside hedge, the Covered Call Calculator when you only want the capped-upside income leg, or the Options Strategy Builder for option-only same-expiration structures without a stock leg.

Method and contract sources