AXTI Collar Strategy
AXTI (AXT, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
AXT, Inc. designs, develops, manufactures, and distributes compound and single element semiconductor substrates. It produces semiconductor substrates using its proprietary vertical gradient freeze technology. The company offers indium phosphide for use in data center connectivity using light/lasers, 5G communications, fiber optic lasers and detectors, passive optical networks, silicon photonics, photonic integrated circuits, terrestrial solar cells, RF amplifier and switching, infrared light-emitting diode (LEDS) motion control, lidar for robotics and autonomous vehicles, and infrared thermal imaging. It also provides semi-insulating gallium arsenide (GaAs) substrates for use in Wi-Fi and IoT devices, transistors, direct broadcast television, power amplifiers, satellite communications, and solar cells; and semi-conducting GaAs substrates that are used in LED, screen displays, printer head lasers and LEDs, 3-D sensing using VCSELs, data center communication using VCSELs, sensors for industrial robotics/near-infrared sensors, optical couplers, solar cells, night vision goggles, lidar for robotics and autonomous vehicles, and other lasers, as well as laser machining, cutting, and drilling. In addition, the company offers germanium substrates for use in multi-junction solar cells for satellites, optical sensors and detectors, terrestrial concentrated photo voltaic cells, infrared detectors, and carrier wafer for LED. Further, it provides 6N+ and 7N+ purified gallium, boron trioxide, gallium-magnesium alloy, pyrolytic boron nitride (pBN) crucibles, and pBN insulating parts.
AXTI (AXT, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $5.65B, a beta of 1.76 versus the broader market, a 52-week range of 1.38-134, average daily share volume of 12.4M, 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 1.76 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.
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.
Current AXTI snapshot
As of May 15, 2026, spot at $125.59, ATM IV 145.70%, IV rank 56.74%, expected move 41.77%. The collar on AXTI 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 28-day expiry.
Why this collar structure on AXTI specifically: IV regime affects collar pricing on both sides; mid-range AXTI IV at 145.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 41.77% (roughly $52.46 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 $125.59 per share and to the trader's directional view on AXTI stock.
AXTI collar setup
The AXTI 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 AXTI near $125.59, the first option leg uses a $132.00 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 | $125.59 | long |
| Sell 1 | Call | $132.00 | $18.00 |
| Buy 1 | Put | $119.00 | $16.25 |
AXTI collar risk and reward
- Net Premium / Debit
- -$12,384.00
- Max Profit (per contract)
- $816.00
- Max Loss (per contract)
- -$484.00
- Breakeven(s)
- $123.84
- Risk / Reward Ratio
- 1.686
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% | -$484.00 |
| $27.78 | -77.9% | -$484.00 |
| $55.55 | -55.8% | -$484.00 |
| $83.31 | -33.7% | -$484.00 |
| $111.08 | -11.6% | -$484.00 |
| $138.85 | +10.6% | +$816.00 |
| $166.62 | +32.7% | +$816.00 |
| $194.38 | +54.8% | +$816.00 |
| $222.15 | +76.9% | +$816.00 |
| $249.92 | +99.0% | +$816.00 |
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 $73.13 on the downside to $178.05 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 56.74% 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 trading near $125.59, the strikes shown on this page are snapped to the nearest listed AXTI chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 145.70%), the computed maximum profit is $816.00 per contract and the computed maximum loss is -$484.00 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 $123.84 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 AXTI market-implied 1-standard-deviation expected move is approximately 41.77%; 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 145.70% with IV rank near 56.74%, 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.