BXP Collar Strategy
BXP (BXP, Inc.), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Boston Properties (NYSE:BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company's portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment.
BXP (BXP, Inc.) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $9.31B, a trailing P/E of 29.21, a beta of 1.06 versus the broader market, a 52-week range of 49.72-79.33, average daily share volume of 2.5M, a public-listing history dating back to 1997, approximately 816 full-time employees. These structural characteristics shape how BXP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.06 places BXP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BXP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on BXP?
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 BXP snapshot
As of May 15, 2026, spot at $58.53, ATM IV 31.10%, IV rank 35.63%, expected move 8.92%. The collar on BXP 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 63-day expiry.
Why this collar structure on BXP specifically: IV regime affects collar pricing on both sides; mid-range BXP IV at 31.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.92% (roughly $5.22 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BXP expiries trade a higher absolute premium for lower per-day decay. Position sizing on BXP should anchor to the underlying notional of $58.53 per share and to the trader's directional view on BXP stock.
BXP collar setup
The BXP 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 BXP near $58.53, the first option leg uses a $62.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BXP chain at a 63-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 BXP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $58.53 | long |
| Sell 1 | Call | $62.50 | $1.38 |
| Buy 1 | Put | $55.00 | $1.73 |
BXP collar risk and reward
- Net Premium / Debit
- -$5,888.00
- Max Profit (per contract)
- $362.00
- Max Loss (per contract)
- -$388.00
- Breakeven(s)
- $58.88
- Risk / Reward Ratio
- 0.933
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.
BXP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BXP. 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% | -$388.00 |
| $12.95 | -77.9% | -$388.00 |
| $25.89 | -55.8% | -$388.00 |
| $38.83 | -33.7% | -$388.00 |
| $51.77 | -11.5% | -$388.00 |
| $64.71 | +10.6% | +$362.00 |
| $77.65 | +32.7% | +$362.00 |
| $90.59 | +54.8% | +$362.00 |
| $103.53 | +76.9% | +$362.00 |
| $116.47 | +99.0% | +$362.00 |
When traders use collar on BXP
Collars on BXP hedge an existing long BXP 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.
BXP thesis for this collar
The market-implied 1-standard-deviation range for BXP extends from approximately $53.31 on the downside to $63.75 on the upside. A BXP collar hedges an existing long BXP 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 BXP IV rank near 35.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BXP should anchor more to the directional view and the expected-move geometry. As a Real Estate name, BXP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BXP-specific events.
BXP 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. BXP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BXP alongside the broader basket even when BXP-specific fundamentals are unchanged. Always rebuild the position from current BXP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BXP?
- A collar on BXP is the collar strategy applied to BXP (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 BXP stock trading near $58.53, the strikes shown on this page are snapped to the nearest listed BXP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BXP 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 BXP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.10%), the computed maximum profit is $362.00 per contract and the computed maximum loss is -$388.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BXP collar?
- The breakeven for the BXP collar priced on this page is roughly $58.88 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 BXP market-implied 1-standard-deviation expected move is approximately 8.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BXP?
- Collars on BXP hedge an existing long BXP 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 BXP implied volatility affect this collar?
- BXP ATM IV is at 31.10% with IV rank near 35.63%, 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.