BR Collar Strategy
BR (Broadridge Financial Solutions, Inc.), in the Technology sector, (Information Technology Services industry), listed on NYSE.
Broadridge Financial Solutions, Inc. provides investor communications and technology-driven solutions for the financial services industry. The company's Investor Communication Solutions segment processes and distributes proxy materials to investors in equity securities and mutual funds, as well as facilitates related vote processing services; and distributes regulatory reports, class action, and corporate action/reorganization event information, as well as tax reporting solutions. It also offers ProxyEdge, an electronic proxy delivery and voting solution; data-driven solutions and an end-to-end platform for content management, composition, and omni-channel distribution of regulatory, marketing, and transactional information, as well as mutual fund trade processing services; data and analytics solutions; solutions for public corporations and mutual funds; SEC filing and capital markets transaction services; registrar, stock transfer, and record-keeping services; and omni-channel customer communications solutions, as well as operates Broadridge Communications Cloud platform that creates, delivers, and manages communications and customer engagement activities. The company's Global Technology and Operations segment provides solutions that automate the front-to-back transaction lifecycle of equity, mutual fund, fixed income, foreign exchange and exchange-traded derivatives, order capture and execution, trade confirmation, margin, cash management, clearance and settlement, reference data management, reconciliations, securities financing and collateral management, asset servicing, compliance and regulatory reporting, portfolio accounting, and custody-related services. This segment also offers business process outsourcing services; technology solutions, such portfolio management, compliance, fee billing, and operational support solutions; and capital market and wealth management solutions. The company was founded in 1962 and is headquartered in Lake Success, New York.
BR (Broadridge Financial Solutions, Inc.) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $16.65B, a trailing P/E of 15.21, a beta of 0.90 versus the broader market, a 52-week range of 139.79-271.91, average daily share volume of 1.5M, a public-listing history dating back to 2007, approximately 14K full-time employees. These structural characteristics shape how BR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places BR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BR?
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 BR snapshot
As of May 15, 2026, spot at $145.82, ATM IV 34.20%, IV rank 69.35%, expected move 9.80%. The collar on BR 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 BR specifically: IV regime affects collar pricing on both sides; mid-range BR IV at 34.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.80% (roughly $14.30 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 BR expiries trade a higher absolute premium for lower per-day decay. Position sizing on BR should anchor to the underlying notional of $145.82 per share and to the trader's directional view on BR stock.
BR collar setup
The BR 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 BR near $145.82, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BR 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 BR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $145.82 | long |
| Sell 1 | Call | $155.00 | $2.23 |
| Buy 1 | Put | $140.00 | $3.60 |
BR collar risk and reward
- Net Premium / Debit
- -$14,719.50
- Max Profit (per contract)
- $780.50
- Max Loss (per contract)
- -$719.50
- Breakeven(s)
- $147.20
- Risk / Reward Ratio
- 1.085
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.
BR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BR. 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% | -$719.50 |
| $32.25 | -77.9% | -$719.50 |
| $64.49 | -55.8% | -$719.50 |
| $96.73 | -33.7% | -$719.50 |
| $128.97 | -11.6% | -$719.50 |
| $161.21 | +10.6% | +$780.50 |
| $193.45 | +32.7% | +$780.50 |
| $225.69 | +54.8% | +$780.50 |
| $257.93 | +76.9% | +$780.50 |
| $290.17 | +99.0% | +$780.50 |
When traders use collar on BR
Collars on BR hedge an existing long BR 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.
BR thesis for this collar
The market-implied 1-standard-deviation range for BR extends from approximately $131.52 on the downside to $160.12 on the upside. A BR collar hedges an existing long BR 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 BR IV rank near 69.35% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BR should anchor more to the directional view and the expected-move geometry. As a Technology name, BR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BR-specific events.
BR 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. BR positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BR alongside the broader basket even when BR-specific fundamentals are unchanged. Always rebuild the position from current BR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BR?
- A collar on BR is the collar strategy applied to BR (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 BR stock trading near $145.82, the strikes shown on this page are snapped to the nearest listed BR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BR 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 BR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 34.20%), the computed maximum profit is $780.50 per contract and the computed maximum loss is -$719.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BR collar?
- The breakeven for the BR collar priced on this page is roughly $147.20 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 BR market-implied 1-standard-deviation expected move is approximately 9.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BR?
- Collars on BR hedge an existing long BR 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 BR implied volatility affect this collar?
- BR ATM IV is at 34.20% with IV rank near 69.35%, 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.