CEVA Collar Strategy
CEVA (CEVA, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
CEVA, Inc. operates as a licensor of wireless connectivity and smart sensing technologies to semiconductor and original equipment manufacturer (OEM) companies worldwide. It designs and licenses various digital signal processors, AI processors, wireless platforms, and complementary software for sensor fusion, image enhancement, computer vision, voice input, and artificial intelligence (AI). The company licenses a family of wireless connectivity and smart sensing technologies, and integrated IP solutions, including DSP-based platforms for 5G baseband processing in mobile, IoT, and infrastructure; imaging and computer vision for any camera-enabled devices; audio/voice/speech and ultra-low power always-on/sensing applications for multiple IoT markets; sensor fusion software and inertial measurement unit solutions for hearables, wearables, AR/VR, PC, robotics, remote controls, and IoT; and wireless IoT for Bluetooth, Wi-Fi 4/5/6/6E, Ultra-wideband (UWB), and NB-IoT. Its technologies are licensed to companies, which design, manufacture, market, and sell application-specific integrated circuits and application-specific standard products to mobile, consumer, automotive, robotics, industrial, aerospace and defense, and IoT companies for incorporation into various end products. The company delivers its DSP cores, platforms, and AI processors in the form of a hardware description language definition; and offers development platforms, software development kits, and software debug tools that facilitate system design, debug, and software development. The company licenses its technology through a direct sales force.
CEVA (CEVA, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.06B, a beta of 1.94 versus the broader market, a 52-week range of 17.02-39.94, average daily share volume of 585K, a public-listing history dating back to 2002, approximately 406 full-time employees. These structural characteristics shape how CEVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.94 indicates CEVA 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 CEVA?
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 CEVA snapshot
As of May 15, 2026, spot at $36.82, ATM IV 79.80%, IV rank 39.47%, expected move 22.88%. The collar on CEVA 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 CEVA specifically: IV regime affects collar pricing on both sides; mid-range CEVA IV at 79.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.88% (roughly $8.42 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 CEVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on CEVA should anchor to the underlying notional of $36.82 per share and to the trader's directional view on CEVA stock.
CEVA collar setup
The CEVA 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 CEVA near $36.82, the first option leg uses a $38.66 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CEVA 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 CEVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $36.82 | long |
| Sell 1 | Call | $38.66 | N/A |
| Buy 1 | Put | $34.98 | N/A |
CEVA 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.
CEVA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CEVA. 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 CEVA
Collars on CEVA hedge an existing long CEVA 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.
CEVA thesis for this collar
The market-implied 1-standard-deviation range for CEVA extends from approximately $28.40 on the downside to $45.24 on the upside. A CEVA collar hedges an existing long CEVA 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 CEVA IV rank near 39.47% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CEVA should anchor more to the directional view and the expected-move geometry. As a Technology name, CEVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CEVA-specific events.
CEVA 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. CEVA positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CEVA alongside the broader basket even when CEVA-specific fundamentals are unchanged. Always rebuild the position from current CEVA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CEVA?
- A collar on CEVA is the collar strategy applied to CEVA (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 CEVA stock trading near $36.82, the strikes shown on this page are snapped to the nearest listed CEVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CEVA 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 CEVA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 79.80%), 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 CEVA collar?
- The breakeven for the CEVA 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 CEVA market-implied 1-standard-deviation expected move is approximately 22.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CEVA?
- Collars on CEVA hedge an existing long CEVA 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 CEVA implied volatility affect this collar?
- CEVA ATM IV is at 79.80% with IV rank near 39.47%, 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.