CBAN Collar Strategy
CBAN (Colony Bankcorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Colony Bankcorp, Inc. functions as the parent entity for Colony Bank, delivering a broad spectrum of financial products and services to both commercial enterprises and individual consumers. The bank offers various ways to save, such as checking, savings, and time deposit accounts (like certificates of deposit). Its lending portfolio is extensive, encompassing loans for small and medium-sized businesses, residential and commercial construction, land development, commercial real estate, general commercial purposes, and agri-business production. Additionally, it provides residential mortgage loans, home equity loans, and consumer credit. Beyond traditional banking, customers can access conveniences such as internet banking, electronic bill payment, safe deposit boxes, telephone banking, credit and debit card services, and remote deposit capture. An ATM network is also accessible to clients.
CBAN (Colony Bankcorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $465.7M, a trailing P/E of 14.25, a beta of 0.54 versus the broader market, a 52-week range of 15.8-22.4, average daily share volume of 299K, a public-listing history dating back to 1998, approximately 528 full-time employees. These structural characteristics shape how CBAN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates CBAN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CBAN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CBAN?
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.
CBAN snapshot
As of August 14, 2026, spot at $22.14, ATM IV 63.40%, IV rank 14.45%, expected move 18.18%. The collar on CBAN below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on CBAN specifically: IV regime affects collar pricing on both sides; compressed CBAN IV at 63.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.18% (roughly $4.02 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CBAN expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBAN should anchor to the underlying notional of $22.14 per share and to the trader's directional view on CBAN stock.
CBAN collar setup
The CBAN 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 CBAN at $22.14 on that close, the first option leg uses a $23.25 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBAN chain at a 35-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 CBAN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $22.14 | long |
| Sell 1 | Call | $23.25 | N/A |
| Buy 1 | Put | $21.03 | N/A |
CBAN 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.
CBAN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CBAN. 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 CBAN
Collars on CBAN hedge an existing long CBAN 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.
CBAN thesis for this collar
The market-implied 1-standard-deviation range for CBAN extends from approximately $18.12 on the downside to $26.16 on the upside. A CBAN collar hedges an existing long CBAN 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 CBAN IV rank near 14.45% 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 CBAN at 63.40%. As a Financial Services name, CBAN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBAN-specific events.
CBAN 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. CBAN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBAN alongside the broader basket even when CBAN-specific fundamentals are unchanged. Always rebuild the position from current CBAN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CBAN?
- A collar on CBAN is the collar strategy applied to CBAN (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 CBAN stock at $22.14 on the most recent close, the strikes shown on this page are snapped to the nearest listed CBAN chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CBAN 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 CBAN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 63.40%), 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 CBAN collar?
- The breakeven for the CBAN collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CBAN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CBAN?
- Collars on CBAN hedge an existing long CBAN 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 CBAN implied volatility affect this collar?
- CBAN ATM IV is at 63.40% with IV rank near 14.45%, 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.