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What Is the Exact Formula for the Maximum Profit in a Collar Strategy?

Max Profit = (Call Strike - Asset Purchase Price) + Net Premium (Call Premium - Put Premium).
Greeks.Live04.11.25

What Is the Exact Formula for the Maximum Profit in a Collar Strategy?

The maximum profit is calculated as: (Call Strike Price – Underlying Asset Purchase Price) + Net Premium Received (or – Net Premium Paid). This assumes the asset is held from the purchase price.

The profit is capped at the call strike. The net premium is the Call Premium minus the Put Premium.

How Is the Maximum Loss Calculated for the Underlying Asset in a Collar?
What Is the Maximum Profit for a Covered Call Strategy?
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How Does a Crypto Collar Differ from a Traditional Stock Collar?

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