BULL Collar Strategy
BULL (Webull Corporation Class A Ordinary Shares), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Webull Corporation operates as a digital investment platform. The company offers trading services, wealth management product distribution, market data and information, user community, and investor education.
BULL (Webull Corporation Class A Ordinary Shares) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.76B, a trailing P/E of 149.19, a beta of 0.60 versus the broader market, a 52-week range of 4.5-18.32, average daily share volume of 12.3M, a public-listing history dating back to 2025, approximately 1K full-time employees. These structural characteristics shape how BULL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates BULL 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 149.19 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 BULL?
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 BULL snapshot
As of May 15, 2026, spot at $7.05, ATM IV 76.32%, IV rank 23.04%, expected move 21.88%. The collar on BULL 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 28-day expiry.
Why this collar structure on BULL specifically: IV regime affects collar pricing on both sides; compressed BULL IV at 76.32% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.88% (roughly $1.54 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BULL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BULL should anchor to the underlying notional of $7.05 per share and to the trader's directional view on BULL stock.
BULL collar setup
The BULL 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 BULL near $7.05, the first option leg uses a $7.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BULL chain at a 28-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 BULL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.05 | long |
| Sell 1 | Call | $7.50 | $0.43 |
| Buy 1 | Put | $6.50 | $0.33 |
BULL collar risk and reward
- Net Premium / Debit
- -$694.50
- Max Profit (per contract)
- $55.50
- Max Loss (per contract)
- -$44.50
- Breakeven(s)
- $6.95
- Risk / Reward Ratio
- 1.247
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.
BULL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BULL. 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 | -99.9% | -$44.50 |
| $1.57 | -77.8% | -$44.50 |
| $3.13 | -55.7% | -$44.50 |
| $4.68 | -33.6% | -$44.50 |
| $6.24 | -11.5% | -$44.50 |
| $7.80 | +10.6% | +$55.50 |
| $9.36 | +32.7% | +$55.50 |
| $10.91 | +54.8% | +$55.50 |
| $12.47 | +76.9% | +$55.50 |
| $14.03 | +99.0% | +$55.50 |
When traders use collar on BULL
Collars on BULL hedge an existing long BULL 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.
BULL thesis for this collar
The market-implied 1-standard-deviation range for BULL extends from approximately $5.51 on the downside to $8.59 on the upside. A BULL collar hedges an existing long BULL 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 BULL IV rank near 23.04% 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 BULL at 76.32%. As a Technology name, BULL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BULL-specific events.
BULL 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. BULL positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BULL alongside the broader basket even when BULL-specific fundamentals are unchanged. Always rebuild the position from current BULL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BULL?
- A collar on BULL is the collar strategy applied to BULL (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 BULL stock trading near $7.05, the strikes shown on this page are snapped to the nearest listed BULL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BULL 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 BULL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 76.32%), the computed maximum profit is $55.50 per contract and the computed maximum loss is -$44.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BULL collar?
- The breakeven for the BULL collar priced on this page is roughly $6.95 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 BULL market-implied 1-standard-deviation expected move is approximately 21.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BULL?
- Collars on BULL hedge an existing long BULL 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 BULL implied volatility affect this collar?
- BULL ATM IV is at 76.32% with IV rank near 23.04%, 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.