ASC Collar Strategy
ASC (Ardmore Shipping Corporation), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
Ardmore Shipping Corporation engages in the seaborne transportation of petroleum products and chemicals worldwide. As of February 15, 2022, the company operated a fleet of 25 double-hulled product and chemical tankers. It serves oil majors, oil companies, oil and chemical traders, chemical companies, and pooling service providers. The company was founded in 2010 and is based in Pembroke, Bermuda.
ASC (Ardmore Shipping Corporation) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $765.0M, a trailing P/E of 13.10, a beta of 0.02 versus the broader market, a 52-week range of 9.18-20.03, average daily share volume of 735K, a public-listing history dating back to 2013, approximately 56 full-time employees. These structural characteristics shape how ASC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.02 indicates ASC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ASC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ASC?
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 ASC snapshot
As of May 15, 2026, spot at $18.93, ATM IV 45.10%, IV rank 41.39%, expected move 12.93%. The collar on ASC 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 ASC specifically: IV regime affects collar pricing on both sides; mid-range ASC IV at 45.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.93% (roughly $2.45 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 ASC expiries trade a higher absolute premium for lower per-day decay. Position sizing on ASC should anchor to the underlying notional of $18.93 per share and to the trader's directional view on ASC stock.
ASC collar setup
The ASC 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 ASC near $18.93, the first option leg uses a $19.88 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ASC 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 ASC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $18.93 | long |
| Sell 1 | Call | $19.88 | N/A |
| Buy 1 | Put | $17.98 | N/A |
ASC 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.
ASC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ASC. 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 ASC
Collars on ASC hedge an existing long ASC 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.
ASC thesis for this collar
The market-implied 1-standard-deviation range for ASC extends from approximately $16.48 on the downside to $21.38 on the upside. A ASC collar hedges an existing long ASC 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 ASC IV rank near 41.39% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ASC should anchor more to the directional view and the expected-move geometry. As a Industrials name, ASC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ASC-specific events.
ASC 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. ASC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ASC alongside the broader basket even when ASC-specific fundamentals are unchanged. Always rebuild the position from current ASC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ASC?
- A collar on ASC is the collar strategy applied to ASC (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 ASC stock trading near $18.93, the strikes shown on this page are snapped to the nearest listed ASC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ASC 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 ASC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 45.10%), 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 ASC collar?
- The breakeven for the ASC 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 ASC market-implied 1-standard-deviation expected move is approximately 12.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ASC?
- Collars on ASC hedge an existing long ASC 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 ASC implied volatility affect this collar?
- ASC ATM IV is at 45.10% with IV rank near 41.39%, 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.