CNDT Collar Strategy
CNDT (Conduent Incorporated), in the Technology sector, (Information Technology Services industry), listed on NASDAQ.
Conduent Incorporated provides business process services with capabilities in transaction-intensive processing, analytics, and automation in the United States, Europe, and internationally. It operates through three segments: Commercial Industries, Government Services, and Transportation. The Commercial Industries segment offers business process services and customized solutions to clients in various industries; and end-user customer experience management, transaction processing services, healthcare and human resource, and learning services. The Government Services segment provides government-centric business process services to the United States federal, state, local, and foreign governments for public assistance, program administration, transaction processing, and payment services; medical management and fiscal agent care management services; and government healthcare, payment solutions, child support, and federal services. The Transportation segment offers systems and support comprising mission-critical mobility and payment solutions to government clients. This segment also provides electronic tolling, urban congestion management, and mileage-based user solutions; transit solutions; citation and permit administration, parking enforcement, and curbside demand management solutions; and computer-aided dispatch/automatic vehicle location solutions.
CNDT (Conduent Incorporated) trades in the Technology sector, specifically Information Technology Services, with a market capitalization of approximately $223.3M, a beta of 1.43 versus the broader market, a 52-week range of 1.15-2.98, average daily share volume of 1.4M, a public-listing history dating back to 2016, approximately 53K full-time employees. These structural characteristics shape how CNDT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates CNDT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on CNDT?
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 CNDT snapshot
As of May 15, 2026, spot at $1.40, ATM IV 91.70%, IV rank 15.92%, expected move 26.29%. The collar on CNDT 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 CNDT specifically: IV regime affects collar pricing on both sides; compressed CNDT IV at 91.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.29% (roughly $0.37 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 CNDT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNDT should anchor to the underlying notional of $1.40 per share and to the trader's directional view on CNDT stock.
CNDT collar setup
The CNDT 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 CNDT near $1.40, the first option leg uses a $1.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CNDT 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 CNDT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.40 | long |
| Sell 1 | Call | $1.47 | N/A |
| Buy 1 | Put | $1.33 | N/A |
CNDT 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.
CNDT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CNDT. 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 CNDT
Collars on CNDT hedge an existing long CNDT 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.
CNDT thesis for this collar
The market-implied 1-standard-deviation range for CNDT extends from approximately $1.03 on the downside to $1.77 on the upside. A CNDT collar hedges an existing long CNDT 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 CNDT IV rank near 15.92% 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 CNDT at 91.70%. As a Technology name, CNDT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNDT-specific events.
CNDT 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. CNDT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNDT alongside the broader basket even when CNDT-specific fundamentals are unchanged. Always rebuild the position from current CNDT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CNDT?
- A collar on CNDT is the collar strategy applied to CNDT (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 CNDT stock trading near $1.40, the strikes shown on this page are snapped to the nearest listed CNDT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNDT 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 CNDT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.70%), 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 CNDT collar?
- The breakeven for the CNDT 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 CNDT market-implied 1-standard-deviation expected move is approximately 26.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CNDT?
- Collars on CNDT hedge an existing long CNDT 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 CNDT implied volatility affect this collar?
- CNDT ATM IV is at 91.70% with IV rank near 15.92%, 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.