CHRD Collar Strategy
CHRD (Chord Energy Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.
Chord Energy Corporation operates as an independent exploration and production company. It acquires, exploits, develops, and explores for crude oil, natural gas, and natural gas liquids in the Williston Basin. The company was founded in 2007 and is headquartered in Houston, Texas.
CHRD (Chord Energy Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $8.00B, a beta of 0.40 versus the broader market, a 52-week range of 84.25-150.5, average daily share volume of 1.1M, a public-listing history dating back to 2020, approximately 762 full-time employees. These structural characteristics shape how CHRD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates CHRD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHRD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CHRD?
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 CHRD snapshot
As of May 15, 2026, spot at $147.87, ATM IV 43.30%, IV rank 35.68%, expected move 12.41%. The collar on CHRD 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 CHRD specifically: IV regime affects collar pricing on both sides; mid-range CHRD IV at 43.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.41% (roughly $18.36 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 CHRD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHRD should anchor to the underlying notional of $147.87 per share and to the trader's directional view on CHRD stock.
CHRD collar setup
The CHRD 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 CHRD near $147.87, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHRD 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 CHRD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $147.87 | long |
| Sell 1 | Call | $155.00 | $4.60 |
| Buy 1 | Put | $140.00 | $4.75 |
CHRD collar risk and reward
- Net Premium / Debit
- -$14,802.00
- Max Profit (per contract)
- $698.00
- Max Loss (per contract)
- -$802.00
- Breakeven(s)
- $148.02
- Risk / Reward Ratio
- 0.870
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.
CHRD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CHRD. 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% | -$802.00 |
| $32.70 | -77.9% | -$802.00 |
| $65.40 | -55.8% | -$802.00 |
| $98.09 | -33.7% | -$802.00 |
| $130.79 | -11.6% | -$802.00 |
| $163.48 | +10.6% | +$698.00 |
| $196.17 | +32.7% | +$698.00 |
| $228.87 | +54.8% | +$698.00 |
| $261.56 | +76.9% | +$698.00 |
| $294.25 | +99.0% | +$698.00 |
When traders use collar on CHRD
Collars on CHRD hedge an existing long CHRD 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.
CHRD thesis for this collar
The market-implied 1-standard-deviation range for CHRD extends from approximately $129.51 on the downside to $166.23 on the upside. A CHRD collar hedges an existing long CHRD 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 CHRD IV rank near 35.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CHRD should anchor more to the directional view and the expected-move geometry. As a Energy name, CHRD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHRD-specific events.
CHRD 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. CHRD positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHRD alongside the broader basket even when CHRD-specific fundamentals are unchanged. Always rebuild the position from current CHRD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CHRD?
- A collar on CHRD is the collar strategy applied to CHRD (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 CHRD stock trading near $147.87, the strikes shown on this page are snapped to the nearest listed CHRD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHRD 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 CHRD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.30%), the computed maximum profit is $698.00 per contract and the computed maximum loss is -$802.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CHRD collar?
- The breakeven for the CHRD collar priced on this page is roughly $148.02 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 CHRD market-implied 1-standard-deviation expected move is approximately 12.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CHRD?
- Collars on CHRD hedge an existing long CHRD 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 CHRD implied volatility affect this collar?
- CHRD ATM IV is at 43.30% with IV rank near 35.68%, 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.