BPOP Collar Strategy
BPOP (Popular, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Popular, Inc., along with its subsidiaries, offers a broad spectrum of financial products and services encompassing retail, mortgage, and commercial banking. These operations extend across Puerto Rico, the United States, and the British Virgin Islands. The company provides various deposit options, including interest-bearing accounts such as savings, NOW, and money market accounts, alongside non-interest-bearing demand deposits and certificates of deposit. Its diverse lending activities include commercial and industrial financing, loans for multi-family and commercial real estate, and residential mortgage products. For individual consumers, Popular provides personal loans, credit cards, automobile financing, and home equity lines of credit. Construction project funding and lease financing, especially for vehicles, are also part of its offerings.
BPOP (Popular, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $10.70B, a trailing P/E of 11.94, a beta of 0.64 versus the broader market, a 52-week range of 108.74-169.14, average daily share volume of 519K, a public-listing history dating back to 1980, approximately 9K full-time employees. These structural characteristics shape how BPOP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates BPOP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.94 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. BPOP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BPOP?
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 BPOP snapshot
As of June 30, 2026, spot at $163.88, ATM IV 72.10%, IV rank 19.79%, expected move 20.67%. The collar on BPOP 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 BPOP specifically: IV regime affects collar pricing on both sides; compressed BPOP IV at 72.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.67% (roughly $33.87 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 BPOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on BPOP should anchor to the underlying notional of $163.88 per share and to the trader's directional view on BPOP stock.
BPOP collar setup
The BPOP 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 BPOP near $163.88, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BPOP 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 BPOP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $163.88 | long |
| Sell 1 | Call | $170.00 | $1.21 |
| Buy 1 | Put | $155.00 | $0.34 |
BPOP collar risk and reward
- Net Premium / Debit
- -$16,301.00
- Max Profit (per contract)
- $699.00
- Max Loss (per contract)
- -$801.00
- Breakeven(s)
- $163.01
- Risk / Reward Ratio
- 0.873
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.
BPOP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BPOP. 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% | -$801.00 |
| $36.24 | -77.9% | -$801.00 |
| $72.48 | -55.8% | -$801.00 |
| $108.71 | -33.7% | -$801.00 |
| $144.94 | -11.6% | -$801.00 |
| $181.18 | +10.6% | +$699.00 |
| $217.41 | +32.7% | +$699.00 |
| $253.65 | +54.8% | +$699.00 |
| $289.88 | +76.9% | +$699.00 |
| $326.11 | +99.0% | +$699.00 |
When traders use collar on BPOP
Collars on BPOP hedge an existing long BPOP 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.
BPOP thesis for this collar
The market-implied 1-standard-deviation range for BPOP extends from approximately $130.01 on the downside to $197.75 on the upside. A BPOP collar hedges an existing long BPOP 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 BPOP IV rank near 19.79% 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 BPOP at 72.10%. As a Financial Services name, BPOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BPOP-specific events.
BPOP 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. BPOP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BPOP alongside the broader basket even when BPOP-specific fundamentals are unchanged. Always rebuild the position from current BPOP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BPOP?
- A collar on BPOP is the collar strategy applied to BPOP (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 BPOP stock trading near $163.88, the strikes shown on this page are snapped to the nearest listed BPOP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BPOP 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 BPOP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 72.10%), the computed maximum profit is $699.00 per contract and the computed maximum loss is -$801.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BPOP collar?
- The breakeven for the BPOP collar priced on this page is roughly $163.01 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 BPOP market-implied 1-standard-deviation expected move is approximately 20.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BPOP?
- Collars on BPOP hedge an existing long BPOP 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 BPOP implied volatility affect this collar?
- BPOP ATM IV is at 72.10% with IV rank near 19.79%, 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.