CGBD Collar Strategy
CGBD (Carlyle Secured Lending, Inc.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
TCG BDC, Inc. is business development company specializing in first lien debt, senior secured loans, second lien senior secured loan unsecured debt, mezzanine debt and investments in equities. It specializes in directly investing. It specializes in middle market. It targets healthcare and pharmaceutical, aerospace and defense, high tech industries, business services, software, beverage food and tobacco, hotel gamming and leisure, banking finance insurance and in real estate sector. The fund seeks to invest across United States of America, Luxembourg, Cayman Islands, Cyprus, and United Kingdom. It invests in companies with EBITDA between $25 million and $100 million.
CGBD (Carlyle Secured Lending, Inc.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $772.8M, a trailing P/E of 15.25, a beta of 0.72 versus the broader market, a 52-week range of 10.61-14.49, average daily share volume of 825K, a public-listing history dating back to 2017, approximately 2K full-time employees. These structural characteristics shape how CGBD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places CGBD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CGBD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CGBD?
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 CGBD snapshot
As of May 15, 2026, spot at $11.22, ATM IV 18.50%, IV rank 4.30%, expected move 5.30%. The collar on CGBD 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 CGBD specifically: IV regime affects collar pricing on both sides; compressed CGBD IV at 18.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.30% (roughly $0.60 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 CGBD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGBD should anchor to the underlying notional of $11.22 per share and to the trader's directional view on CGBD stock.
CGBD collar setup
The CGBD 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 CGBD near $11.22, the first option leg uses a $11.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGBD 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 CGBD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.22 | long |
| Sell 1 | Call | $11.78 | N/A |
| Buy 1 | Put | $10.66 | N/A |
CGBD 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.
CGBD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CGBD. 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 CGBD
Collars on CGBD hedge an existing long CGBD 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.
CGBD thesis for this collar
The market-implied 1-standard-deviation range for CGBD extends from approximately $10.62 on the downside to $11.82 on the upside. A CGBD collar hedges an existing long CGBD 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 CGBD IV rank near 4.30% 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 CGBD at 18.50%. As a Financial Services name, CGBD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGBD-specific events.
CGBD 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. CGBD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGBD alongside the broader basket even when CGBD-specific fundamentals are unchanged. Always rebuild the position from current CGBD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CGBD?
- A collar on CGBD is the collar strategy applied to CGBD (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 CGBD stock trading near $11.22, the strikes shown on this page are snapped to the nearest listed CGBD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGBD 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 CGBD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 18.50%), 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 CGBD collar?
- The breakeven for the CGBD 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 CGBD market-implied 1-standard-deviation expected move is approximately 5.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CGBD?
- Collars on CGBD hedge an existing long CGBD 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 CGBD implied volatility affect this collar?
- CGBD ATM IV is at 18.50% with IV rank near 4.30%, 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.