BTSG Collar Strategy
BTSG (BrightSpring Health Services, Inc. Common Stock), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.
BrightSpring Health Services, Inc. operates a home and community-based healthcare services platform in the United States. The company's platform focuses on delivering pharmacy and provider services, including clinical and supportive care in home and community settings to Medicare, Medicaid, and insured populations. It serves patients through clinical providers and pharmacists. BrightSpring Health Services, Inc. was formerly known as Phoenix Parent Holdings Inc. and changed its name to BrightSpring Health Services, Inc. in May 2021. The company was founded in 1974 and is based in Louisville, Kentucky.
BTSG (BrightSpring Health Services, Inc. Common Stock) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $10.96B, a trailing P/E of 37.32, a beta of 1.72 versus the broader market, a 52-week range of 19.01-56.97, average daily share volume of 2.9M, a public-listing history dating back to 2024, approximately 37K full-time employees. These structural characteristics shape how BTSG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.72 indicates BTSG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 37.32 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on BTSG?
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 BTSG snapshot
As of May 15, 2026, spot at $58.14, ATM IV 43.90%, IV rank 26.74%, expected move 12.59%. The collar on BTSG 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 BTSG specifically: IV regime affects collar pricing on both sides; compressed BTSG IV at 43.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.59% (roughly $7.32 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 BTSG expiries trade a higher absolute premium for lower per-day decay. Position sizing on BTSG should anchor to the underlying notional of $58.14 per share and to the trader's directional view on BTSG stock.
BTSG collar setup
The BTSG 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 BTSG near $58.14, the first option leg uses a $61.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BTSG 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 BTSG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $58.14 | long |
| Sell 1 | Call | $61.05 | N/A |
| Buy 1 | Put | $55.23 | N/A |
BTSG 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.
BTSG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BTSG. 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 BTSG
Collars on BTSG hedge an existing long BTSG 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.
BTSG thesis for this collar
The market-implied 1-standard-deviation range for BTSG extends from approximately $50.82 on the downside to $65.46 on the upside. A BTSG collar hedges an existing long BTSG 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 BTSG IV rank near 26.74% 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 BTSG at 43.90%. As a Healthcare name, BTSG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BTSG-specific events.
BTSG 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. BTSG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BTSG alongside the broader basket even when BTSG-specific fundamentals are unchanged. Always rebuild the position from current BTSG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BTSG?
- A collar on BTSG is the collar strategy applied to BTSG (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 BTSG stock trading near $58.14, the strikes shown on this page are snapped to the nearest listed BTSG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BTSG 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 BTSG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.90%), 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 BTSG collar?
- The breakeven for the BTSG 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 BTSG market-implied 1-standard-deviation expected move is approximately 12.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BTSG?
- Collars on BTSG hedge an existing long BTSG 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 BTSG implied volatility affect this collar?
- BTSG ATM IV is at 43.90% with IV rank near 26.74%, 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.