BEN Collar Strategy
BEN (Franklin Resources, Inc.), in the Financial Services sector, (Asset Management industry), listed on NYSE.
Franklin Resources, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, institutions, pension plans, trusts, and partnerships. It launches equity, fixed income, balanced, and multi-asset mutual funds through its subsidiaries. The firm invests in the public equity, fixed income, and alternative markets. Franklin Resources, Inc. was founded in 1947 and is based in San Mateo, California with an additional office in Hyderabad, India.
BEN (Franklin Resources, Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $16.65B, a trailing P/E of 20.42, a beta of 1.59 versus the broader market, a 52-week range of 21.06-32.24, average daily share volume of 5.3M, a public-listing history dating back to 1983, approximately 10K full-time employees. These structural characteristics shape how BEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.59 indicates BEN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BEN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BEN?
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 BEN snapshot
As of May 15, 2026, spot at $31.89, ATM IV 27.90%, IV rank 33.63%, expected move 8.00%. The collar on BEN 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 BEN specifically: IV regime affects collar pricing on both sides; mid-range BEN IV at 27.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.00% (roughly $2.55 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 BEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BEN should anchor to the underlying notional of $31.89 per share and to the trader's directional view on BEN stock.
BEN collar setup
The BEN 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 BEN near $31.89, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BEN 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 BEN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $31.89 | long |
| Sell 1 | Call | $34.00 | $0.33 |
| Buy 1 | Put | $30.00 | $0.50 |
BEN collar risk and reward
- Net Premium / Debit
- -$3,206.50
- Max Profit (per contract)
- $193.50
- Max Loss (per contract)
- -$206.50
- Breakeven(s)
- $32.07
- Risk / Reward Ratio
- 0.937
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.
BEN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BEN. 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% | -$206.50 |
| $7.06 | -77.9% | -$206.50 |
| $14.11 | -55.8% | -$206.50 |
| $21.16 | -33.6% | -$206.50 |
| $28.21 | -11.5% | -$206.50 |
| $35.26 | +10.6% | +$193.50 |
| $42.31 | +32.7% | +$193.50 |
| $49.36 | +54.8% | +$193.50 |
| $56.41 | +76.9% | +$193.50 |
| $63.46 | +99.0% | +$193.50 |
When traders use collar on BEN
Collars on BEN hedge an existing long BEN 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.
BEN thesis for this collar
The market-implied 1-standard-deviation range for BEN extends from approximately $29.34 on the downside to $34.44 on the upside. A BEN collar hedges an existing long BEN 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 BEN IV rank near 33.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BEN should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BEN-specific events.
BEN 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. BEN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BEN alongside the broader basket even when BEN-specific fundamentals are unchanged. Always rebuild the position from current BEN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BEN?
- A collar on BEN is the collar strategy applied to BEN (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 BEN stock trading near $31.89, the strikes shown on this page are snapped to the nearest listed BEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BEN 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 BEN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 27.90%), the computed maximum profit is $193.50 per contract and the computed maximum loss is -$206.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BEN collar?
- The breakeven for the BEN collar priced on this page is roughly $32.07 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 BEN market-implied 1-standard-deviation expected move is approximately 8.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BEN?
- Collars on BEN hedge an existing long BEN 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 BEN implied volatility affect this collar?
- BEN ATM IV is at 27.90% with IV rank near 33.63%, 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.