AUDC Collar Strategy
AUDC (AudioCodes Ltd.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Founded in 1992 and headquartered in Lod, Israel, AudioCodes Ltd. is a prominent provider of sophisticated communication solutions for the contemporary digital workplace. The company offers a comprehensive portfolio encompassing software, hardware, and productivity tools, specifically designed for unified communications (UC), contact centers, its VoiceAI business segment, and service provider clientele. Its extensive product range includes core networking equipment such as session border controllers (SBCs), media gateways, VoIP network routing systems, multi-service business routers, and IP phones. Beyond physical devices, AudioCodes provides advanced management platforms like the One Voice Operations Center for voice network oversight, Device Manager for the administration of business phones and meeting room solutions, and AudioCodes Routing Manager for optimizing call routing in VoIP networks. For users of Microsoft's ecosystem, the company offers User Management Pack 365, which streamlines user lifecycle and identity management for Microsoft Teams and Skype for Business environments, alongside managed services such as AudioCodes Live for Microsoft Teams, and dedicated appliances (including survivable branch appliances, CCE, and CloudBond 365) to support these platforms. Furthermore, AudioCodes develops a variety of value-added voice applications, including SmartTAP, Voca, VoiceAI Connect, and Meeting Insights.
AUDC (AudioCodes Ltd.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $239.0M, a trailing P/E of 36.06, a beta of 0.97 versus the broader market, a 52-week range of 6.95-11.5, average daily share volume of 114K, a public-listing history dating back to 1999, approximately 946 full-time employees. These structural characteristics shape how AUDC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places AUDC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.06 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. AUDC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on AUDC?
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 AUDC snapshot
As of June 30, 2026, spot at $9.83, ATM IV 22.30%, IV rank 1.66%, expected move 6.39%. The collar on AUDC 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 17-day expiry.
Why this collar structure on AUDC specifically: IV regime affects collar pricing on both sides; compressed AUDC IV at 22.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.39% (roughly $0.63 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AUDC expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUDC should anchor to the underlying notional of $9.83 per share and to the trader's directional view on AUDC stock.
AUDC collar setup
The AUDC 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 AUDC near $9.83, the first option leg uses a $10.32 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUDC chain at a 17-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 AUDC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.83 | long |
| Sell 1 | Call | $10.32 | N/A |
| Buy 1 | Put | $9.34 | N/A |
AUDC 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.
AUDC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AUDC. 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 AUDC
Collars on AUDC hedge an existing long AUDC 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.
AUDC thesis for this collar
The market-implied 1-standard-deviation range for AUDC extends from approximately $9.20 on the downside to $10.46 on the upside. A AUDC collar hedges an existing long AUDC 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 AUDC IV rank near 1.66% 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 AUDC at 22.30%. As a Technology name, AUDC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUDC-specific events.
AUDC 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. AUDC positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUDC alongside the broader basket even when AUDC-specific fundamentals are unchanged. Always rebuild the position from current AUDC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AUDC?
- A collar on AUDC is the collar strategy applied to AUDC (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 AUDC stock trading near $9.83, the strikes shown on this page are snapped to the nearest listed AUDC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AUDC 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 AUDC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.30%), 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 AUDC collar?
- The breakeven for the AUDC 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 AUDC market-implied 1-standard-deviation expected move is approximately 6.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AUDC?
- Collars on AUDC hedge an existing long AUDC 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 AUDC implied volatility affect this collar?
- AUDC ATM IV is at 22.30% with IV rank near 1.66%, 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.