AIOT Collar Strategy
AIOT (PowerFleet, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
PowerFleet, Inc. provides wireless Internet-of-Things asset management solutions in the United States, Israel, and internationally. The company offers real-time intelligence for organizations to capture IoT data from various types of assets with devices and sensors to increase efficiencies, and improve safety and security, as well as increase their profitability in easy-to-understand reports, dashboards, and real-time alerts; and application programming interfaces for additional integrations and development to boost other enterprise management systems and third-party applications. It also provides hosting, maintenance, and support and consulting services; and Software as a Service, including system monitoring, help desk technical support, escalation procedure development, routine diagnostic data analysis, and software updates services. The company offers its products under the PowerFleet, Pointer, and Cellocator brands. It sells its products to commercial and government sectors in manufacturing, automotive manufacturing, wholesale and retail, food and grocery distribution, pharmaceutical and medical distribution, construction, mining, utilities, heavy industry, aerospace and defense, homeland security, and vehicle rental, logistics, shipping, and freight transportation markets, as well as through indirect sales channels, such as original equipment manufacturers, vehicle importers, distributors, and industrial equipment dealers. The company was formerly known as I.D.
AIOT (PowerFleet, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $441.3M, a beta of 1.38 versus the broader market, a 52-week range of 2.78-6.05, average daily share volume of 1.6M, a public-listing history dating back to 1999, approximately 2K full-time employees. These structural characteristics shape how AIOT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.38 indicates AIOT 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 AIOT?
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 AIOT snapshot
As of May 15, 2026, spot at $3.25, ATM IV 109.80%, IV rank 48.49%, expected move 31.48%. The collar on AIOT 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 34-day expiry.
Why this collar structure on AIOT specifically: IV regime affects collar pricing on both sides; mid-range AIOT IV at 109.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.48% (roughly $1.02 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AIOT expiries trade a higher absolute premium for lower per-day decay. Position sizing on AIOT should anchor to the underlying notional of $3.25 per share and to the trader's directional view on AIOT stock.
AIOT collar setup
The AIOT 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 AIOT near $3.25, the first option leg uses a $3.41 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AIOT chain at a 34-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 AIOT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.25 | long |
| Sell 1 | Call | $3.41 | N/A |
| Buy 1 | Put | $3.09 | N/A |
AIOT 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.
AIOT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AIOT. 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 AIOT
Collars on AIOT hedge an existing long AIOT 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.
AIOT thesis for this collar
The market-implied 1-standard-deviation range for AIOT extends from approximately $2.23 on the downside to $4.27 on the upside. A AIOT collar hedges an existing long AIOT 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 AIOT IV rank near 48.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on AIOT should anchor more to the directional view and the expected-move geometry. As a Technology name, AIOT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AIOT-specific events.
AIOT 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. AIOT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AIOT alongside the broader basket even when AIOT-specific fundamentals are unchanged. Always rebuild the position from current AIOT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AIOT?
- A collar on AIOT is the collar strategy applied to AIOT (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 AIOT stock trading near $3.25, the strikes shown on this page are snapped to the nearest listed AIOT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AIOT 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 AIOT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 109.80%), 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 AIOT collar?
- The breakeven for the AIOT 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 AIOT market-implied 1-standard-deviation expected move is approximately 31.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AIOT?
- Collars on AIOT hedge an existing long AIOT 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 AIOT implied volatility affect this collar?
- AIOT ATM IV is at 109.80% with IV rank near 48.49%, 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.