BHB Collar Strategy
BHB (Bar Harbor Bankshares), in the Financial Services sector, (Banks - Regional industry), listed on AMEX.
Bar Harbor Bankshares operates as the holding company for Bar Harbor Bank & Trust that provides commercial, lending, retail, and wealth management banking services. It accepts various deposit products, including interest-bearing and non-interest-bearing demand accounts, savings accounts, time deposits, and money market deposit accounts, as well as certificates of deposit. The company also provides commercial real estate loans, such as multi-family, commercial construction and land development, and other commercial real estate classes; commercial and industrial loans, including loans to commercial and agricultural businesses, and tax exempt entities; residential real estate loans consists of mortgages for 1-4 family housing; and consumer loans comprises home equity loans, lines of credit, auto, and other installment lending. In addition, it provides life insurance, annuity, and retirement products, as well as financial planning services; and third-party investment and insurance services. Further, the company offers trust and estate administration, wealth advisory, and investment management services to individuals, businesses, not-for-profit organizations, and municipalities; and 401K plan, financial, estate and charitable planning, investment management, family office, municipal, and tax services. It operates 53 locations across Maine, New Hampshire, and Vermont.
BHB (Bar Harbor Bankshares) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $566.2M, a trailing P/E of 14.06, a beta of 0.60 versus the broader market, a 52-week range of 28.06-36.05, average daily share volume of 131K, a public-listing history dating back to 1997, approximately 458 full-time employees. These structural characteristics shape how BHB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates BHB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BHB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BHB?
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 BHB snapshot
As of May 15, 2026, spot at $33.55, ATM IV 60.60%, IV rank 31.20%, expected move 17.37%. The collar on BHB 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 BHB specifically: IV regime affects collar pricing on both sides; mid-range BHB IV at 60.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.37% (roughly $5.83 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 BHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHB should anchor to the underlying notional of $33.55 per share and to the trader's directional view on BHB stock.
BHB collar setup
The BHB 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 BHB near $33.55, the first option leg uses a $35.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHB 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 BHB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.55 | long |
| Sell 1 | Call | $35.23 | N/A |
| Buy 1 | Put | $31.87 | N/A |
BHB 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.
BHB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BHB. 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 BHB
Collars on BHB hedge an existing long BHB 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.
BHB thesis for this collar
The market-implied 1-standard-deviation range for BHB extends from approximately $27.72 on the downside to $39.38 on the upside. A BHB collar hedges an existing long BHB 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 BHB IV rank near 31.20% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BHB should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHB-specific events.
BHB 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. BHB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BHB alongside the broader basket even when BHB-specific fundamentals are unchanged. Always rebuild the position from current BHB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BHB?
- A collar on BHB is the collar strategy applied to BHB (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 BHB stock trading near $33.55, the strikes shown on this page are snapped to the nearest listed BHB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BHB 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 BHB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 60.60%), 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 BHB collar?
- The breakeven for the BHB 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 BHB market-implied 1-standard-deviation expected move is approximately 17.37%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BHB?
- Collars on BHB hedge an existing long BHB 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 BHB implied volatility affect this collar?
- BHB ATM IV is at 60.60% with IV rank near 31.20%, 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.