BMRC Collar Strategy
BMRC (Bank of Marin Bancorp), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Bank of Marin Bancorp operates as the holding company for Bank of Marin that provides a range of financial services primarily to small to medium-sized businesses, professionals, not-for-profit organizations, and individuals in California, the United States. It offers personal and business checking and savings accounts; and individual retirement, health savings, and demand deposit marketplace accounts, as well as time certificates of deposit, certificate of deposit account registry and insured cash sweep services. The company also provides commercial real estate, commercial and industrial, and consumer loans, as well as construction financing and home equity lines of credit. In addition, it offers merchant and payroll, and cash management services; credit cards; fraud detection tools; and mobile deposit, remote deposit capture, automated clearing house, wire transfer, and image lockbox services. Further, the company provides wealth management and trust services comprising customized investment portfolio management, financial planning, trust administration, estate settlement, and custody services, as well as 401(k) plan services; and automated teller machines, and telephone and digital banking services. It operates through 12 branch offices in Marin, southern Sonoma counties, and north of San Francisco, California; and a loan production office in San Francisco.
BMRC (Bank of Marin Bancorp) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $414.3M, a trailing P/E of 8.66, a beta of 0.81 versus the broader market, a 52-week range of 20.25-28.48, average daily share volume of 106K, a public-listing history dating back to 1999, approximately 291 full-time employees. These structural characteristics shape how BMRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places BMRC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 8.66 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. BMRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BMRC?
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 BMRC snapshot
As of May 15, 2026, spot at $25.30, ATM IV 86.60%, IV rank 31.37%, expected move 24.83%. The collar on BMRC 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 BMRC specifically: IV regime affects collar pricing on both sides; mid-range BMRC IV at 86.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 24.83% (roughly $6.28 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 BMRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on BMRC should anchor to the underlying notional of $25.30 per share and to the trader's directional view on BMRC stock.
BMRC collar setup
The BMRC 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 BMRC near $25.30, the first option leg uses a $26.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BMRC 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 BMRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.30 | long |
| Sell 1 | Call | $26.57 | N/A |
| Buy 1 | Put | $24.04 | N/A |
BMRC 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.
BMRC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BMRC. 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 BMRC
Collars on BMRC hedge an existing long BMRC 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.
BMRC thesis for this collar
The market-implied 1-standard-deviation range for BMRC extends from approximately $19.02 on the downside to $31.58 on the upside. A BMRC collar hedges an existing long BMRC 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 BMRC IV rank near 31.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BMRC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, BMRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BMRC-specific events.
BMRC 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. BMRC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BMRC alongside the broader basket even when BMRC-specific fundamentals are unchanged. Always rebuild the position from current BMRC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BMRC?
- A collar on BMRC is the collar strategy applied to BMRC (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 BMRC stock trading near $25.30, the strikes shown on this page are snapped to the nearest listed BMRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BMRC 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 BMRC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 86.60%), 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 BMRC collar?
- The breakeven for the BMRC 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 BMRC market-implied 1-standard-deviation expected move is approximately 24.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BMRC?
- Collars on BMRC hedge an existing long BMRC 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 BMRC implied volatility affect this collar?
- BMRC ATM IV is at 86.60% with IV rank near 31.37%, 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.