ACDC Collar Strategy
ACDC (ProFrac Holding Corp.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NASDAQ.
ProFrac Holding Corp. operates as an integrated energy services provider, delivering a range of solutions including hydraulic fracturing and well completion services, along with other related products, to upstream oil and gas enterprises. These clients primarily focus on the exploration and production of unconventional oil and natural gas resources throughout North America. The company structures its operations across three core divisions: Stimulation Services, Manufacturing, and Proppant Production. Additionally, ProFrac is involved in the production and distribution of essential components such as high-horsepower pumps, valves, piping, swivels, extensive manifold systems, seats, and fluid ends. Established in 2016, ProFrac Holding Corp. maintains its corporate headquarters in Willow Park, Texas.
ACDC (ProFrac Holding Corp.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $1.05B, a beta of 1.42 versus the broader market, a 52-week range of 3.08-8.49, average daily share volume of 1.4M, a public-listing history dating back to 2022, approximately 3K full-time employees. These structural characteristics shape how ACDC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.42 indicates ACDC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on ACDC?
A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.
Current ACDC snapshot
As of June 30, 2026, spot at $5.79, ATM IV 91.80%, IV rank 40.73%, expected move 26.32%. The collar on ACDC below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this collar structure on ACDC specifically: IV regime affects collar pricing on both sides; mid-range ACDC IV at 91.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.32% (roughly $1.52 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ACDC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACDC should anchor to the underlying notional of $5.79 per share and to the trader's directional view on ACDC stock.
ACDC collar setup
The ACDC collar below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ACDC near $5.79, the first option leg uses a $6.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACDC chain at a 17-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 ACDC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.79 | long |
| Sell 1 | Call | $6.08 | N/A |
| Buy 1 | Put | $5.50 | N/A |
ACDC collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.
ACDC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ACDC. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
When traders use collar on ACDC
Collars on ACDC hedge an existing long ACDC stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
ACDC thesis for this collar
The market-implied 1-standard-deviation range for ACDC extends from approximately $4.27 on the downside to $7.31 on the upside. A ACDC collar hedges an existing long ACDC position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current ACDC IV rank near 40.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ACDC should anchor more to the directional view and the expected-move geometry. As a Energy name, ACDC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACDC-specific events.
ACDC collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. ACDC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACDC alongside the broader basket even when ACDC-specific fundamentals are unchanged. Always rebuild the position from current ACDC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ACDC?
- A collar on ACDC is the collar strategy applied to ACDC (stock). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With ACDC stock trading near $5.79, the strikes shown on this page are snapped to the nearest listed ACDC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACDC collar max profit and max loss calculated?
- Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the ACDC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ACDC collar?
- The breakeven for the ACDC collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current ACDC market-implied 1-standard-deviation expected move is approximately 26.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ACDC?
- Collars on ACDC hedge an existing long ACDC stock position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
- How does current ACDC implied volatility affect this collar?
- ACDC ATM IV is at 91.80% with IV rank near 40.73%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.