CEPU Collar Strategy
CEPU (Central Puerto S.A.), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Central Puerto S.A. generates and sells electric power to private and public customers in Argentina. It also produces steam. As of December 31, 2021, the company owned and operated five thermal generation plants, one hydroelectric generation plant, and seven wind farms with a total installed capacity of 4,809 MW. Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.
CEPU (Central Puerto S.A.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $2.13B, a trailing P/E of 9.54, a beta of -0.20 versus the broader market, a 52-week range of 7.43-18.503, average daily share volume of 379K, a public-listing history dating back to 2018, approximately 865 full-time employees. These structural characteristics shape how CEPU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.20 indicates CEPU 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 9.54 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. CEPU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CEPU?
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 CEPU snapshot
As of May 15, 2026, spot at $13.82, ATM IV 92.50%, IV rank 31.38%, expected move 26.52%. The collar on CEPU 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 34-day expiry.
Why this collar structure on CEPU specifically: IV regime affects collar pricing on both sides; mid-range CEPU IV at 92.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.52% (roughly $3.66 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CEPU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CEPU should anchor to the underlying notional of $13.82 per share and to the trader's directional view on CEPU stock.
CEPU collar setup
The CEPU 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 CEPU near $13.82, the first option leg uses a $14.51 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CEPU chain at a 34-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 CEPU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.82 | long |
| Sell 1 | Call | $14.51 | N/A |
| Buy 1 | Put | $13.13 | N/A |
CEPU 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.
CEPU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CEPU. 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 CEPU
Collars on CEPU hedge an existing long CEPU 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.
CEPU thesis for this collar
The market-implied 1-standard-deviation range for CEPU extends from approximately $10.16 on the downside to $17.48 on the upside. A CEPU collar hedges an existing long CEPU 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 CEPU IV rank near 31.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CEPU should anchor more to the directional view and the expected-move geometry. As a Utilities name, CEPU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CEPU-specific events.
CEPU 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. CEPU positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CEPU alongside the broader basket even when CEPU-specific fundamentals are unchanged. Always rebuild the position from current CEPU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CEPU?
- A collar on CEPU is the collar strategy applied to CEPU (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 CEPU stock trading near $13.82, the strikes shown on this page are snapped to the nearest listed CEPU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CEPU 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 CEPU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 92.50%), 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 CEPU collar?
- The breakeven for the CEPU 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 CEPU market-implied 1-standard-deviation expected move is approximately 26.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CEPU?
- Collars on CEPU hedge an existing long CEPU 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 CEPU implied volatility affect this collar?
- CEPU ATM IV is at 92.50% with IV rank near 31.38%, 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.