CBRS Collar Strategy
CBRS (Cerebras Systems Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Cerebras Systems Inc. is a leading innovator in artificial intelligence infrastructure. The company develops and manufactures an advanced AI compute platform, integrating proprietary hardware systems and software. This platform is delivered in rack-mountable units, suitable for deployment in data centers, scaling all the way up to supercomputer-level capabilities. At its core is the groundbreaking Wafer-Scale Engine (WSE), a unique chip that encompasses an entire silicon wafer. This innovation is specifically engineered to deliver superior performance and speed compared to conventional GPUs, addressing the intensive computational demands of inference, Generative AI, and a broad spectrum of other AI applications. Cerebras serves a diverse clientele, including leading hyperscalers, advanced foundation model laboratories, AI-native and digital-first businesses, large enterprises, and key players in Sovereign AI initiatives.
CBRS (Cerebras Systems Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $59.37B, a beta of 1.85 versus the broader market, a 52-week range of 160.81-386.34, average daily share volume of 7.3M, a public-listing history dating back to 2026, approximately 784 full-time employees. These structural characteristics shape how CBRS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.85 indicates CBRS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on CBRS?
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.
CBRS snapshot
As of August 14, 2026, spot at $218.70, ATM IV 93.67%, expected move 26.85%. The collar on CBRS below is built from the August 14, 2026 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 CBRS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for CBRS is inferred from ATM IV at 93.67% alone, with a market-implied 1-standard-deviation move of approximately 26.85% (roughly $58.73 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 CBRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CBRS should anchor to the underlying notional of $218.70 per share and to the trader's directional view on CBRS stock.
CBRS collar setup
The CBRS collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CBRS at $218.70 on that close, the first option leg uses a $230.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CBRS 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 CBRS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $218.70 | long |
| Sell 1 | Call | $230.00 | $18.00 |
| Buy 1 | Put | $207.50 | $16.65 |
CBRS collar risk and reward
- Net Premium / Debit
- -$21,735.00
- Max Profit (per contract)
- $1,265.00
- Max Loss (per contract)
- -$985.00
- Breakeven(s)
- $217.35
- Risk / Reward Ratio
- 1.284
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.
CBRS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CBRS. 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% | -$985.00 |
| $48.36 | -77.9% | -$985.00 |
| $96.72 | -55.8% | -$985.00 |
| $145.07 | -33.7% | -$985.00 |
| $193.43 | -11.6% | -$985.00 |
| $241.78 | +10.6% | +$1,265.00 |
| $290.14 | +32.7% | +$1,265.00 |
| $338.49 | +54.8% | +$1,265.00 |
| $386.85 | +76.9% | +$1,265.00 |
| $435.20 | +99.0% | +$1,265.00 |
When traders use collar on CBRS
Collars on CBRS hedge an existing long CBRS 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.
CBRS thesis for this collar
The market-implied 1-standard-deviation range for CBRS extends from approximately $159.97 on the downside to $277.43 on the upside. A CBRS collar hedges an existing long CBRS 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. As a Technology name, CBRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CBRS-specific events.
CBRS 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. CBRS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CBRS alongside the broader basket even when CBRS-specific fundamentals are unchanged. Always rebuild the position from current CBRS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CBRS?
- A collar on CBRS is the collar strategy applied to CBRS (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 CBRS stock at $218.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CBRS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CBRS 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 CBRS collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 93.67%), the computed maximum profit is $1,265.00 per contract and the computed maximum loss is -$985.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CBRS collar?
- The breakeven for the CBRS collar priced on this page is roughly $217.35 at expiration, derived from the August 14, 2026 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 CBRS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CBRS?
- Collars on CBRS hedge an existing long CBRS 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 CBRS implied volatility affect this collar?
- Current CBRS ATM IV is 93.67%; IV rank context is unavailable in the current snapshot.