GHI stock is sold at $1.00 and a put option for GHI with a strike price of $80 is purchased for $0.50. And, suppose for the bear call portion of the iron condor a call option with a strike price of $100 for GHI stock is sold at $1.00 and a call option for GHI with a strike price of $110 is purchased for $0.50, and at the option's expiration the price of the stock or index is greater than the short put strike price of $90 and less than the short call strike price of $100. The return generated for this position is: GHI Iron Condor Return = [(1 - 0.5)+(1 - 0.5)]/{max(110-100,90-80) - [(1 - 0.5)+(1 - 0.5)]} = 11.1%. Collar return The collar (finance) is a neutral-to-bullish strategy and consists of a combination of a covered call (see above) and a long put option for protection. The protective put provides insurance to guarantee a floor on the potential loss, but the protective put option also reduces the amount of potential return. The collar is useful for reducing or delaying taxes for large stock positions which otherwise would need to be sold in order to diversify, reduce risk, etc. The following calculation assumes the sold call option and the purchased put option are both out-of-the-money and the price of the stock at expiration is the same as at entry: %If Unchanged Potential Return = (call option price - put option price) / [stock price - (call option price - put option price)] For example, for stock JKH purchased at $52.5, a call option sold for $2.00 with a strike price of $55 and a put option purchased for $0.50 with a strike price of $50, the %If Unchanged Return for the collar would be: %If Unchanged Potential Return = (2-0.5)/[52.5-(2-0.5)]= 2.9% The break-even point is the stock purchase price minus the net of the call option price and the put option price. Break-even = $52.5 - ($2.00 - $0.50) = $51.00 As long as the price of the JKH stock is greater than $51 at stock option expiration, the position will be profitable. The percent maximum loss is the difference between the break-even price and the strike price of the purchased put option divided by the net investment, for example for JKH: %Max loss = (51 - 50)/[52.5-(2-0.5)] = 2% Naked put return The naked put is a