Shares with a protective put below and a covered call above: the net cost of the options, the floor and the cap, the breakeven and the most it can make or lose.
| Price at expiry | Profit or loss at expiry |
|---|---|
| $86.20 | -$530.00 |
| $95.00 | -$530.00 |
| $100.00 | -$30.00 |
| $100.30 | -$0.00 |
| $110.00 | $970.00 |
| $118.80 | $970.00 |
A collar holds the shares, buys a put to set a floor under them and sells a call to pay for the put. The price is that the gain stops at the call strike.
Between the strikes the position moves one for one with the shares. Below the put strike the put makes up every further dollar; above the call strike the shares are sold at the strike.
Protective put calculator · Covered call calculator · every calculator
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