AR Collar Strategy
AR (Antero Resources Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
Antero Resources Corporation, an independent oil and natural gas company, acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. As of December 31, 2021, it had approximately 502,000 net acres in the Appalachian Basin; and 174,000 net acres in the Upper Devonian Shale. The company also owned and operated 494 miles of gas gathering pipelines in the Appalachian Basin; and 21 compressor stations. It had estimated proved reserves of 17.7 trillion cubic feet of natural gas equivalent, including 10.2 trillion cubic feet of natural gas; 718 million barrels of assumed recovered ethane; 501 million barrels of primarily propane, isobutane, normal butane, and natural gasoline; and 36 million barrels of oil. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was founded in 2002 and is headquartered in Denver, Colorado.
AR (Antero Resources Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $11.38B, a trailing P/E of 11.80, a beta of 0.36 versus the broader market, a 52-week range of 29.1-45.75, average daily share volume of 5.7M, a public-listing history dating back to 2013, approximately 616 full-time employees. These structural characteristics shape how AR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.36 indicates AR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.80 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on AR?
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 AR snapshot
As of May 15, 2026, spot at $38.23, ATM IV 38.74%, IV rank 29.97%, expected move 11.11%. The collar on AR 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 28-day expiry.
Why this collar structure on AR specifically: IV regime affects collar pricing on both sides; compressed AR IV at 38.74% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.11% (roughly $4.25 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AR should anchor to the underlying notional of $38.23 per share and to the trader's directional view on AR stock.
AR collar setup
The AR 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 AR near $38.23, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AR chain at a 28-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 AR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.23 | long |
| Sell 1 | Call | $40.00 | $1.00 |
| Buy 1 | Put | $36.00 | $0.60 |
AR collar risk and reward
- Net Premium / Debit
- -$3,783.00
- Max Profit (per contract)
- $217.00
- Max Loss (per contract)
- -$183.00
- Breakeven(s)
- $37.83
- Risk / Reward Ratio
- 1.186
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.
AR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AR. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$183.00 |
| $8.46 | -77.9% | -$183.00 |
| $16.91 | -55.8% | -$183.00 |
| $25.37 | -33.7% | -$183.00 |
| $33.82 | -11.5% | -$183.00 |
| $42.27 | +10.6% | +$217.00 |
| $50.72 | +32.7% | +$217.00 |
| $59.17 | +54.8% | +$217.00 |
| $67.62 | +76.9% | +$217.00 |
| $76.08 | +99.0% | +$217.00 |
When traders use collar on AR
Collars on AR hedge an existing long AR 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.
AR thesis for this collar
The market-implied 1-standard-deviation range for AR extends from approximately $33.98 on the downside to $42.48 on the upside. A AR collar hedges an existing long AR 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 AR IV rank near 29.97% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AR at 38.74%. As a Energy name, AR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AR-specific events.
AR 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. AR positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AR alongside the broader basket even when AR-specific fundamentals are unchanged. Always rebuild the position from current AR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AR?
- A collar on AR is the collar strategy applied to AR (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 AR stock trading near $38.23, the strikes shown on this page are snapped to the nearest listed AR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AR 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 AR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.74%), the computed maximum profit is $217.00 per contract and the computed maximum loss is -$183.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AR collar?
- The breakeven for the AR collar priced on this page is roughly $37.83 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 AR market-implied 1-standard-deviation expected move is approximately 11.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AR?
- Collars on AR hedge an existing long AR 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 AR implied volatility affect this collar?
- AR ATM IV is at 38.74% with IV rank near 29.97%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.