BJRI Collar Strategy
BJRI (BJ's Restaurants, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
BJ's Restaurants, Inc. manages a network of casual dining establishments situated throughout the United States. Patrons can enjoy a diverse menu at these eateries, encompassing pizzas, a variety of beers (including craft selections), appetizers, main courses, pasta dishes, sandwiches, signature salads, and decadent desserts. As of April 19, 2022, the corporation had a footprint of 213 restaurants, operating across 29 states. This company was founded in 1978 and is headquartered in Huntington Beach, California.
BJRI (BJ's Restaurants, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $1.26B, a trailing P/E of 28.56, a beta of 1.36 versus the broader market, a 52-week range of 28.46-60.77, average daily share volume of 422K, a public-listing history dating back to 1996, approximately 21K full-time employees. These structural characteristics shape how BJRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.36 indicates BJRI 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 BJRI?
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 BJRI snapshot
As of June 30, 2026, spot at $59.95, ATM IV 48.90%, IV rank 37.86%, expected move 14.02%. The collar on BJRI 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 BJRI specifically: IV regime affects collar pricing on both sides; mid-range BJRI IV at 48.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $8.40 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 BJRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BJRI should anchor to the underlying notional of $59.95 per share and to the trader's directional view on BJRI stock.
BJRI collar setup
The BJRI 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 BJRI near $59.95, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BJRI 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 BJRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $59.95 | long |
| Sell 1 | Call | $62.50 | $1.38 |
| Buy 1 | Put | $57.50 | $1.88 |
BJRI collar risk and reward
- Net Premium / Debit
- -$6,045.00
- Max Profit (per contract)
- $205.00
- Max Loss (per contract)
- -$295.00
- Breakeven(s)
- $60.45
- Risk / Reward Ratio
- 0.695
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.
BJRI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BJRI. 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% | -$295.00 |
| $13.26 | -77.9% | -$295.00 |
| $26.52 | -55.8% | -$295.00 |
| $39.77 | -33.7% | -$295.00 |
| $53.03 | -11.5% | -$295.00 |
| $66.28 | +10.6% | +$205.00 |
| $79.54 | +32.7% | +$205.00 |
| $92.79 | +54.8% | +$205.00 |
| $106.04 | +76.9% | +$205.00 |
| $119.30 | +99.0% | +$205.00 |
When traders use collar on BJRI
Collars on BJRI hedge an existing long BJRI 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.
BJRI thesis for this collar
The market-implied 1-standard-deviation range for BJRI extends from approximately $51.55 on the downside to $68.35 on the upside. A BJRI collar hedges an existing long BJRI 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 BJRI IV rank near 37.86% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BJRI should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, BJRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BJRI-specific events.
BJRI 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. BJRI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BJRI alongside the broader basket even when BJRI-specific fundamentals are unchanged. Always rebuild the position from current BJRI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BJRI?
- A collar on BJRI is the collar strategy applied to BJRI (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 BJRI stock trading near $59.95, the strikes shown on this page are snapped to the nearest listed BJRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BJRI 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 BJRI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is $205.00 per contract and the computed maximum loss is -$295.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BJRI collar?
- The breakeven for the BJRI collar priced on this page is roughly $60.45 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 BJRI market-implied 1-standard-deviation expected move is approximately 14.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BJRI?
- Collars on BJRI hedge an existing long BJRI 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 BJRI implied volatility affect this collar?
- BJRI ATM IV is at 48.90% with IV rank near 37.86%, 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.