CHCT Collar Strategy
CHCT (Community Healthcare Trust Incorporated), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.
Community Healthcare Trust Incorporated is a real estate investment trust that focuses on owning income-producing real estate properties associated primarily with the delivery of outpatient healthcare services in our target sub-markets throughout the United States. The Company had investments of approximately $667.3 million in 131 real estate properties as of September 30, 2020, located in 33 states, totaling approximately 2.8 million square feet.
CHCT (Community Healthcare Trust Incorporated) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $485.7M, a trailing P/E of 75.73, a beta of 0.71 versus the broader market, a 52-week range of 13.23-18.22, average daily share volume of 270K, a public-listing history dating back to 2015, approximately 36 full-time employees. These structural characteristics shape how CHCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places CHCT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 75.73 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. CHCT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CHCT?
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 CHCT snapshot
As of May 15, 2026, spot at $16.91, ATM IV 52.80%, IV rank 13.21%, expected move 15.14%. The collar on CHCT 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 CHCT specifically: IV regime affects collar pricing on both sides; compressed CHCT IV at 52.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.14% (roughly $2.56 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 CHCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHCT should anchor to the underlying notional of $16.91 per share and to the trader's directional view on CHCT stock.
CHCT collar setup
The CHCT 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 CHCT near $16.91, the first option leg uses a $17.76 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHCT 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 CHCT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.91 | long |
| Sell 1 | Call | $17.76 | N/A |
| Buy 1 | Put | $16.06 | N/A |
CHCT 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.
CHCT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CHCT. 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 CHCT
Collars on CHCT hedge an existing long CHCT 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.
CHCT thesis for this collar
The market-implied 1-standard-deviation range for CHCT extends from approximately $14.35 on the downside to $19.47 on the upside. A CHCT collar hedges an existing long CHCT 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 CHCT IV rank near 13.21% 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 CHCT at 52.80%. As a Real Estate name, CHCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHCT-specific events.
CHCT 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. CHCT positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHCT alongside the broader basket even when CHCT-specific fundamentals are unchanged. Always rebuild the position from current CHCT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CHCT?
- A collar on CHCT is the collar strategy applied to CHCT (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 CHCT stock trading near $16.91, the strikes shown on this page are snapped to the nearest listed CHCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHCT 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 CHCT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.80%), 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 CHCT collar?
- The breakeven for the CHCT 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 CHCT market-implied 1-standard-deviation expected move is approximately 15.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CHCT?
- Collars on CHCT hedge an existing long CHCT 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 CHCT implied volatility affect this collar?
- CHCT ATM IV is at 52.80% with IV rank near 13.21%, 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.