ALM Collar Strategy
ALM (Almonty Industries Inc. Common Shares), in the Basic Materials sector, (Other Precious Metals industry), listed on NASDAQ.
Almonty Industries Inc. engages in mining, processing, and shipping of tungsten concentrate. The company explores for tin and tungsten deposits. It holds a portfolio of projects and mines located in Spain, Portugal, and Republic of Korea. Almonty Industries Inc. is headquartered in Toronto, Canada.
ALM (Almonty Industries Inc. Common Shares) trades in the Basic Materials sector, specifically Other Precious Metals, with a market capitalization of approximately $5.48B, a beta of 1.28 versus the broader market, a 52-week range of 3.16-24.41, average daily share volume of 5.5M, a public-listing history dating back to 2025, approximately 341 full-time employees. These structural characteristics shape how ALM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places ALM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on ALM?
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 ALM snapshot
As of May 15, 2026, spot at $17.52, ATM IV 91.40%, expected move 26.20%. The collar on ALM 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 ALM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for ALM is inferred from ATM IV at 91.40% alone, with a market-implied 1-standard-deviation move of approximately 26.20% (roughly $4.59 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 ALM expiries trade a higher absolute premium for lower per-day decay. Position sizing on ALM should anchor to the underlying notional of $17.52 per share and to the trader's directional view on ALM stock.
ALM collar setup
The ALM 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 ALM near $17.52, the first option leg uses a $18.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ALM 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 ALM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.52 | long |
| Sell 1 | Call | $18.40 | N/A |
| Buy 1 | Put | $16.64 | N/A |
ALM 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.
ALM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ALM. 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 ALM
Collars on ALM hedge an existing long ALM 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.
ALM thesis for this collar
The market-implied 1-standard-deviation range for ALM extends from approximately $12.93 on the downside to $22.11 on the upside. A ALM collar hedges an existing long ALM 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. As a Basic Materials name, ALM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ALM-specific events.
ALM 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. ALM positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ALM alongside the broader basket even when ALM-specific fundamentals are unchanged. Always rebuild the position from current ALM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ALM?
- A collar on ALM is the collar strategy applied to ALM (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 ALM stock trading near $17.52, the strikes shown on this page are snapped to the nearest listed ALM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ALM 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 ALM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.40%), 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 ALM collar?
- The breakeven for the ALM 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 ALM market-implied 1-standard-deviation expected move is approximately 26.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ALM?
- Collars on ALM hedge an existing long ALM 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 ALM implied volatility affect this collar?
- Current ALM ATM IV is 91.40%; IV rank context is unavailable in the current snapshot.