BNL Collar Strategy
BNL (Broadstone Net Lease, Inc.), in the Real Estate sector, (REIT - Diversified industry), listed on NYSE.
Broadstone Net Lease, Inc. (BNL) operates as a self-managed Real Estate Investment Trust. Its strategy focuses on acquiring, owning, and overseeing primarily single-tenant commercial properties that are subject to long-term net leases with a varied tenant base. The company's investment approach is anchored by robust fundamental credit evaluations and judicious real estate underwriting. As of September 30, 2020, BNL's diverse portfolio comprised 627 properties. Geographically, these holdings span 41 U.S. states and one location in Canada, encompassing sectors such as industrial, healthcare, restaurant, office, and retail, with a cumulative gross asset value of approximately $4.0 billion.
BNL (Broadstone Net Lease, Inc.) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $4.04B, a trailing P/E of 27.82, a beta of 0.96 versus the broader market, a 52-week range of 16.58-23.1, average daily share volume of 2.5M, a public-listing history dating back to 2020, approximately 62 full-time employees. These structural characteristics shape how BNL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places BNL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BNL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BNL?
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.
BNL snapshot
As of August 14, 2026, spot at $21.33, ATM IV 35.60%, IV rank 5.77%, expected move 10.21%. The collar on BNL below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on BNL specifically: IV regime affects collar pricing on both sides; compressed BNL IV at 35.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.21% (roughly $2.18 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BNL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BNL should anchor to the underlying notional of $21.33 per share and to the trader's directional view on BNL stock.
BNL collar setup
The BNL 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 BNL at $21.33 on that close, the first option leg uses a $22.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BNL chain at a 35-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 BNL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.33 | long |
| Sell 1 | Call | $22.40 | N/A |
| Buy 1 | Put | $20.26 | N/A |
BNL 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.
BNL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BNL. 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 BNL
Collars on BNL hedge an existing long BNL 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.
BNL thesis for this collar
The market-implied 1-standard-deviation range for BNL extends from approximately $19.15 on the downside to $23.51 on the upside. A BNL collar hedges an existing long BNL 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 BNL IV rank near 5.77% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on BNL at 35.60%. As a Real Estate name, BNL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BNL-specific events.
BNL 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. BNL positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BNL alongside the broader basket even when BNL-specific fundamentals are unchanged. Always rebuild the position from current BNL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BNL?
- A collar on BNL is the collar strategy applied to BNL (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 BNL stock at $21.33 on the most recent close, the strikes shown on this page are snapped to the nearest listed BNL chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BNL 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 BNL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.60%), 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 BNL collar?
- The breakeven for the BNL collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BNL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BNL?
- Collars on BNL hedge an existing long BNL 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 BNL implied volatility affect this collar?
- BNL ATM IV is at 35.60% with IV rank near 5.77%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.