ASIX Collar Strategy
ASIX (AdvanSix Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NYSE.
AdvanSix Inc. operates as a global manufacturer and supplier of polymer resins, serving markets across the United States and internationally. A key offering is Nylon 6, a versatile synthetic polymer resin utilized in the production of fibers, filaments, specialized plastics, and films. The company's portfolio also includes caprolactam, an essential building block for other polymer resins, and ammonium sulfate fertilizers, which it distributes to farm cooperatives, retailers, and other channel partners. Furthermore, AdvanSix supplies acetone, a crucial ingredient for manufacturing adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins. Its extensive range additionally comprises various intermediate chemicals, such as phenol, alpha-methyl styrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide. These offerings are marketed under established brands like Aegis, Capra, Sulf-N, Nadone, Naxol, and EZ-Blox.
ASIX (AdvanSix Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $426.5M, a beta of 1.28 versus the broader market, a 52-week range of 14.1-26.73, average daily share volume of 292K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how ASIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places ASIX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ASIX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ASIX?
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.
ASIX snapshot
As of August 14, 2026, spot at $16.95, ATM IV 49.70%, IV rank 14.16%, expected move 14.25%. The collar on ASIX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on ASIX specifically: IV regime affects collar pricing on both sides; compressed ASIX IV at 49.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.25% (roughly $2.42 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ASIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on ASIX should anchor to the underlying notional of $16.95 per share and to the trader's directional view on ASIX stock.
ASIX collar setup
The ASIX 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 ASIX at $16.95 on that close, the first option leg uses a $17.80 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ASIX chain at a 35-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 ASIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.95 | long |
| Sell 1 | Call | $17.80 | N/A |
| Buy 1 | Put | $16.10 | N/A |
ASIX 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.
ASIX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ASIX. 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 ASIX
Collars on ASIX hedge an existing long ASIX 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.
ASIX thesis for this collar
The market-implied 1-standard-deviation range for ASIX extends from approximately $14.53 on the downside to $19.37 on the upside. A ASIX collar hedges an existing long ASIX 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 ASIX IV rank near 14.16% 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 ASIX at 49.70%. As a Basic Materials name, ASIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ASIX-specific events.
ASIX 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. ASIX positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ASIX alongside the broader basket even when ASIX-specific fundamentals are unchanged. Always rebuild the position from current ASIX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ASIX?
- A collar on ASIX is the collar strategy applied to ASIX (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 ASIX stock at $16.95 on the most recent close, the strikes shown on this page are snapped to the nearest listed ASIX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ASIX 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 ASIX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.70%), 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 ASIX collar?
- The breakeven for the ASIX collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ASIX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ASIX?
- Collars on ASIX hedge an existing long ASIX 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 ASIX implied volatility affect this collar?
- ASIX ATM IV is at 49.70% with IV rank near 14.16%, 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.