Collar Strategy Calculator
Hold the asset while buying a put and selling a call (collar) to see net credit/debit, floor and cap.
Results
Fill in the inputs and click Calculate.
- Net Credit (+)
- –
- Breakeven
- –
- Floor
- –
- Cap
- –
Risk disclaimer
Upside is capped and the sold call needs margin; exchange fees are excluded.
How does the collar work?
The bought put floors the downside; the sold call subsidizes its cost — at the price of capping upside.
Floor = put strike + net credit; cap = call strike + net credit.
When call premium exceeds put premium the collar can even be a net credit.
How to use
- Enter spot, put strike and put premium.
- Enter the sold call strike (above the put) and its premium.
- Click Calculate for net credit, breakeven, floor and cap.
Formula
- Net credit = call premium − put premium
- Breakeven = spot − net credit
- Floor = put strike + net credit; cap = call strike + net credit
Example
Spot 100, put 90 @2, call 110 @3 → net credit 1, breakeven 99, floor 91, cap 111.
Per-unit figures; multiply by your position.
FAQ
Can the call strike be below the put?
A collar is typically call-above-put; use the strangle tools for the other structure.