CG Collar Strategy
CG (The Carlyle Group Inc.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Carlyle Group Inc. is an investment firm specializing in direct and fund of fund investments. Within direct investments, it specializes in management-led/ Leveraged buyouts, privatizations, divestitures, strategic minority equity investments, structured credit, global distressed and corporate opportunities, small and middle market, equity private placements, consolidations and buildups, senior debt, mezzanine and leveraged finance, and venture and growth capital financings, seed/startup, early venture, emerging growth, turnaround, mid venture, late venture, PIPES. The firm invests across four segments which include Corporate Private Equity, Real Assets, Global Market Strategies, and Solutions. The firm typically invests in industrial, agribusiness, ecological sector, fintech, airports, parking, Plastics, Rubber, diversified natural resources, minerals, farming, aerospace, defense, automotive, consumer, retail, industrial, infrastructure, energy, power, healthcare, software, software enabled services, semiconductors, communications infrastructure, financial technology, utilities, gaming, systems and related supply chain, electronic systems, systems, oil and gas, processing facilities, power generation assets, technology, systems, real estate, financial services, transportation, business services, telecommunications, media, and logistics sectors. Within the industrial sector, the firm invests in manufacturing, building products, packaging, chemicals, metals and mining, forestry and paper products, and industrial consumables and services. In consumer and retail sectors, it invests in food and beverage, retail, restaurants, consumer products, domestic consumption, consumer services, personal care products, direct marketing, and education.
CG (The Carlyle Group Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $17.70B, a trailing P/E of 32.31, a beta of 1.89 versus the broader market, a 52-week range of 43.19-69.85, average daily share volume of 3.4M, a public-listing history dating back to 2012, approximately 2K full-time employees. These structural characteristics shape how CG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.89 indicates CG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CG?
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 CG snapshot
As of May 15, 2026, spot at $48.29, ATM IV 42.00%, IV rank 32.37%, expected move 12.04%. The collar on CG 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 CG specifically: IV regime affects collar pricing on both sides; mid-range CG IV at 42.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.04% (roughly $5.81 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 CG expiries trade a higher absolute premium for lower per-day decay. Position sizing on CG should anchor to the underlying notional of $48.29 per share and to the trader's directional view on CG stock.
CG collar setup
The CG 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 CG near $48.29, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CG 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 CG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $48.29 | long |
| Sell 1 | Call | $50.00 | $1.68 |
| Buy 1 | Put | $45.00 | $1.13 |
CG collar risk and reward
- Net Premium / Debit
- -$4,774.00
- Max Profit (per contract)
- $226.00
- Max Loss (per contract)
- -$274.00
- Breakeven(s)
- $47.74
- Risk / Reward Ratio
- 0.825
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.
CG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CG. 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% | -$274.00 |
| $10.69 | -77.9% | -$274.00 |
| $21.36 | -55.8% | -$274.00 |
| $32.04 | -33.7% | -$274.00 |
| $42.71 | -11.5% | -$274.00 |
| $53.39 | +10.6% | +$226.00 |
| $64.07 | +32.7% | +$226.00 |
| $74.74 | +54.8% | +$226.00 |
| $85.42 | +76.9% | +$226.00 |
| $96.09 | +99.0% | +$226.00 |
When traders use collar on CG
Collars on CG hedge an existing long CG 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.
CG thesis for this collar
The market-implied 1-standard-deviation range for CG extends from approximately $42.48 on the downside to $54.10 on the upside. A CG collar hedges an existing long CG 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 CG IV rank near 32.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CG-specific events.
CG 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. CG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CG alongside the broader basket even when CG-specific fundamentals are unchanged. Always rebuild the position from current CG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CG?
- A collar on CG is the collar strategy applied to CG (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 CG stock trading near $48.29, the strikes shown on this page are snapped to the nearest listed CG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CG 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 CG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.00%), the computed maximum profit is $226.00 per contract and the computed maximum loss is -$274.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CG collar?
- The breakeven for the CG collar priced on this page is roughly $47.74 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 CG market-implied 1-standard-deviation expected move is approximately 12.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CG?
- Collars on CG hedge an existing long CG 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 CG implied volatility affect this collar?
- CG ATM IV is at 42.00% with IV rank near 32.37%, 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.