Shares with a put bought under them: the cost of the protection, the floor it sets, the breakeven and the most the position can lose.
| Price at expiry | Profit or loss at expiry |
|---|---|
| $86.83 | -$710.00 |
| $95.00 | -$710.00 |
| $100.00 | -$210.00 |
| $102.10 | -$0.00 |
| $110.27 | $816.80 |
A protective put is insurance on shares you hold: the right to sell them at the strike until expiry. Below the strike every further fall in the shares is made up by the put.
The most the position can lose is the distance from the price paid down to the strike, plus the premium. The upside stays open, less the premium.
Collar calculator · every calculator
Every price here is one you typed; nothing is fetched and nothing is stored. The numbers travel in the address of this page, so a result can be linked to. Results are at expiry for one structure, before commissions and fees, and assume no early assignment. An illustration of the arithmetic, not advice.