CGBD Collar Strategy
CGBD (Carlyle Secured Lending, Inc.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Carlyle Secured Lending, Inc. functions as a business development company, primarily making direct investments. The firm provides a diverse array of financing, including first and second lien senior secured loans, unsecured debt, mezzanine debt, and equity stakes. It focuses its investment efforts on the middle market segment. Industries of interest include healthcare and pharmaceuticals, aerospace and defense, high technology, business services, software, the beverage, food, and tobacco sectors, hospitality, gaming, and leisure, banking, finance, and insurance, and real estate. Geographically, Carlyle Secured Lending invests in companies located in the United States, Luxembourg, the Cayman Islands, Cyprus, and the United Kingdom. It typically targets businesses generating an 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 $788.8M, a trailing P/E of 21.75, a beta of 0.68 versus the broader market, a 52-week range of 9.945-14.035, average daily share volume of 627K, a public-listing history dating back to 2017, approximately 3K 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 0.68 indicates CGBD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. 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.
CGBD snapshot
As of August 14, 2026, spot at $11.38, ATM IV 99.90%, IV rank 19.78%, expected move 6.34%. The collar on CGBD below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on CGBD specifically: IV regime affects collar pricing on both sides; compressed CGBD IV at 99.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.34% (roughly $0.72 on the underlying). The 35-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 $11.38 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 at $11.38 on that close, the first option leg uses a $11.95 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 35-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 | $11.38 | long |
| Sell 1 | Call | $11.95 | N/A |
| Buy 1 | Put | $10.81 | 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 $10.66 on the downside to $12.10 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 19.78% 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 99.90%. 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 at $11.38 on the most recent close, the strikes shown on this page are snapped to the nearest listed CGBD chain strike and the premiums come straight from that session's 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 99.90%), 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 the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CGBD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.34%; 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 99.90% with IV rank near 19.78%, 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.