AUB Collar Strategy
AUB (Atlantic Union Bankshares Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Atlantic Union Bankshares Corporation operates as the holding company for Atlantic Union Bank that provides banking and related financial services to consumers and businesses. The company accepts various deposit products, including checking, savings, NOW, time deposit, and money market accounts; certificates of deposit; and other depository services. It also provides loans for commercial, industrial, residential mortgage, and consumer purposes. In addition, the company offers credit cards, automated teller machine (ATM) services, mobile and internet banking services, and online bill payment services, as well as financial planning, trust, and wealth management services. Further, it provides securities, brokerage, and investment advisory products and services; and originates and sells residential loan products in the secondary market. As of February 25, 2022, it operated 130 branches and approximately 150 ATMs in Virginia, Maryland, and North Carolina.
AUB (Atlantic Union Bankshares Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.22B, a trailing P/E of 14.94, a beta of 0.80 versus the broader market, a 52-week range of 28.11-42.18, average daily share volume of 1.0M, a public-listing history dating back to 1993, approximately 2K full-time employees. These structural characteristics shape how AUB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places AUB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AUB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AUB?
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 AUB snapshot
As of May 15, 2026, spot at $36.48, ATM IV 24.10%, IV rank 1.60%, expected move 6.91%. The collar on AUB 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 AUB specifically: IV regime affects collar pricing on both sides; compressed AUB IV at 24.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $2.52 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 AUB expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUB should anchor to the underlying notional of $36.48 per share and to the trader's directional view on AUB stock.
AUB collar setup
The AUB 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 AUB near $36.48, the first option leg uses a $38.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUB 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 AUB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $36.48 | long |
| Sell 1 | Call | $38.30 | N/A |
| Buy 1 | Put | $34.66 | N/A |
AUB 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.
AUB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AUB. 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 AUB
Collars on AUB hedge an existing long AUB 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.
AUB thesis for this collar
The market-implied 1-standard-deviation range for AUB extends from approximately $33.96 on the downside to $39.00 on the upside. A AUB collar hedges an existing long AUB 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 AUB IV rank near 1.60% 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 AUB at 24.10%. As a Financial Services name, AUB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUB-specific events.
AUB 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. AUB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUB alongside the broader basket even when AUB-specific fundamentals are unchanged. Always rebuild the position from current AUB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AUB?
- A collar on AUB is the collar strategy applied to AUB (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 AUB stock trading near $36.48, the strikes shown on this page are snapped to the nearest listed AUB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AUB 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 AUB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), 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 AUB collar?
- The breakeven for the AUB 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 AUB market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AUB?
- Collars on AUB hedge an existing long AUB 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 AUB implied volatility affect this collar?
- AUB ATM IV is at 24.10% with IV rank near 1.60%, 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.