AXTI Collar Strategy
AXTI (AXT, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
AXT, Inc. is a company dedicated to the design, development, production, and worldwide distribution of both compound and single-element semiconductor substrates. Leveraging its proprietary vertical gradient freeze technology, the firm manufactures these essential components. Its diverse product range includes indium phosphide substrates, vital for applications like data center connectivity (utilizing light and lasers), 5G communications, fiber optic lasers and detectors, passive optical networks, silicon photonics, photonic integrated circuits, terrestrial solar cells, RF amplification and switching, infrared LEDs for motion control, LiDAR in robotics and autonomous vehicles, and infrared thermal imaging. AXT also provides semi-insulating gallium arsenide (GaAs) substrates, which are critical for Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells. Furthermore, its semi-conducting GaAs substrates find use in LEDs, screen displays, printer head lasers and LEDs, 3D sensing via VCSELs, data center communication using VCSELs, sensors for industrial robotics and near-infrared applications, optical couplers, solar cells, night vision goggles, LiDAR for robotics and autonomous vehicles, and various other laser technologies such as machining, cutting, and drilling. Germanium substrates are another key offering, employed in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photovoltaic cells, infrared detectors, and as carrier wafers for LEDs.
AXTI (AXT, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $3.98B, a trailing P/E of 1,185.12, a beta of 1.93 versus the broader market, a 52-week range of 2.05-143.16, average daily share volume of 11.3M, a public-listing history dating back to 1998, approximately 2K full-time employees. These structural characteristics shape how AXTI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.93 indicates AXTI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 1,185.12 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.
What is a collar on AXTI?
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.
AXTI snapshot
As of August 14, 2026, spot at $81.68, ATM IV 120.64%, IV rank 51.95%, expected move 34.59%. The collar on AXTI below is built from the August 14, 2026 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 AXTI specifically: IV regime affects collar pricing on both sides; mid-range AXTI IV at 120.64% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 34.59% (roughly $28.25 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 AXTI expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXTI should anchor to the underlying notional of $81.68 per share and to the trader's directional view on AXTI stock.
AXTI collar setup
The AXTI collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AXTI at $81.68 on that close, the first option leg uses a $86.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXTI 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 AXTI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $81.68 | long |
| Sell 1 | Call | $86.00 | $8.80 |
| Buy 1 | Put | $78.00 | $8.95 |
AXTI collar risk and reward
- Net Premium / Debit
- -$8,183.00
- Max Profit (per contract)
- $417.00
- Max Loss (per contract)
- -$383.00
- Breakeven(s)
- $81.83
- Risk / Reward Ratio
- 1.089
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.
AXTI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AXTI. 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% | -$383.00 |
| $18.07 | -77.9% | -$383.00 |
| $36.13 | -55.8% | -$383.00 |
| $54.19 | -33.7% | -$383.00 |
| $72.25 | -11.6% | -$383.00 |
| $90.30 | +10.6% | +$417.00 |
| $108.36 | +32.7% | +$417.00 |
| $126.42 | +54.8% | +$417.00 |
| $144.48 | +76.9% | +$417.00 |
| $162.54 | +99.0% | +$417.00 |
When traders use collar on AXTI
Collars on AXTI hedge an existing long AXTI 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.
AXTI thesis for this collar
The market-implied 1-standard-deviation range for AXTI extends from approximately $53.43 on the downside to $109.93 on the upside. A AXTI collar hedges an existing long AXTI 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 AXTI IV rank near 51.95% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on AXTI should anchor more to the directional view and the expected-move geometry. As a Technology name, AXTI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXTI-specific events.
AXTI 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. AXTI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AXTI alongside the broader basket even when AXTI-specific fundamentals are unchanged. Always rebuild the position from current AXTI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AXTI?
- A collar on AXTI is the collar strategy applied to AXTI (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 AXTI stock at $81.68 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AXTI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AXTI 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 AXTI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 120.64%), the computed maximum profit is $417.00 per contract and the computed maximum loss is -$383.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AXTI collar?
- The breakeven for the AXTI collar priced on this page is roughly $81.83 at expiration, derived from the August 14, 2026 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 AXTI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 34.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AXTI?
- Collars on AXTI hedge an existing long AXTI 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 AXTI implied volatility affect this collar?
- AXTI ATM IV is at 120.64% with IV rank near 51.95%, 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.