CDZI Collar Strategy
CDZI (Cadiz Inc.), in the Utilities sector, (Regulated Water industry), listed on NASDAQ.
Operating within the United States, Cadiz Inc. functions as a natural resources development entity. Its primary activities revolve around water and agricultural development projects, predominantly situated across its vast landholdings in California's San Bernardino County. The company's property portfolio includes approximately 35,000 acres located in the Cadiz and Fenner valleys of eastern San Bernardino County, alongside an additional 11,000 acres in the eastern Mojave Desert region of the same county. Beyond its resource endeavors, Cadiz Inc. also cultivates various crops such as lemons, and undertakes seasonal plantings of vegetables and grains. This enterprise, founded in 1983, maintains its corporate headquarters in Los Angeles, California.
CDZI (Cadiz Inc.) trades in the Utilities sector, specifically Regulated Water, with a market capitalization of approximately $312.8M, a beta of 1.81 versus the broader market, a 52-week range of 2.89-6.96, average daily share volume of 822K, a public-listing history dating back to 1989, approximately 25 full-time employees. These structural characteristics shape how CDZI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.81 indicates CDZI 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 CDZI?
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 CDZI snapshot
As of June 26, 2026, spot at $3.67, ATM IV 22.50%, IV rank 0.05%, expected move 6.45%. The collar on CDZI 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 21-day expiry.
Why this collar structure on CDZI specifically: IV regime affects collar pricing on both sides; compressed CDZI IV at 22.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.45% (roughly $0.24 on the underlying). The 21-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CDZI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDZI should anchor to the underlying notional of $3.67 per share and to the trader's directional view on CDZI stock.
CDZI collar setup
The CDZI 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 CDZI near $3.67, the first option leg uses a $3.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDZI chain at a 21-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 CDZI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.67 | long |
| Sell 1 | Call | $3.85 | N/A |
| Buy 1 | Put | $3.49 | N/A |
CDZI 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.
CDZI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CDZI. 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 CDZI
Collars on CDZI hedge an existing long CDZI 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.
CDZI thesis for this collar
The market-implied 1-standard-deviation range for CDZI extends from approximately $3.43 on the downside to $3.91 on the upside. A CDZI collar hedges an existing long CDZI 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 CDZI IV rank near 0.05% 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 CDZI at 22.50%. As a Utilities name, CDZI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDZI-specific events.
CDZI 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. CDZI positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CDZI alongside the broader basket even when CDZI-specific fundamentals are unchanged. Always rebuild the position from current CDZI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CDZI?
- A collar on CDZI is the collar strategy applied to CDZI (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 CDZI stock trading near $3.67, the strikes shown on this page are snapped to the nearest listed CDZI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CDZI 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 CDZI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.50%), 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 CDZI collar?
- The breakeven for the CDZI 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 CDZI market-implied 1-standard-deviation expected move is approximately 6.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CDZI?
- Collars on CDZI hedge an existing long CDZI 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 CDZI implied volatility affect this collar?
- CDZI ATM IV is at 22.50% with IV rank near 0.05%, 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.