CNTY Collar Strategy
CNTY (Century Casinos, Inc.), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NASDAQ.
Century Casinos, Inc. operates as a casino entertainment company in the United States, Canada, and Poland. The company develops and operates gaming establishments, as well as related lodging, restaurant, horse racing, and entertainment facilities. As of March 8, 2022, it operated two ship-based casinos. The company was founded in 1992 and is based in Colorado Springs, Colorado.
CNTY (Century Casinos, Inc.) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $36.3M, a beta of 1.70 versus the broader market, a 52-week range of 1.23-2.85, average daily share volume of 58K, a public-listing history dating back to 1993, approximately 3K full-time employees. These structural characteristics shape how CNTY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.70 indicates CNTY 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 CNTY?
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 CNTY snapshot
As of May 15, 2026, spot at $1.40, ATM IV 26.20%, IV rank 1.45%, expected move 7.51%. The collar on CNTY 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 CNTY specifically: IV regime affects collar pricing on both sides; compressed CNTY IV at 26.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.51% (roughly $0.11 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 CNTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on CNTY should anchor to the underlying notional of $1.40 per share and to the trader's directional view on CNTY stock.
CNTY collar setup
The CNTY 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 CNTY 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 CNTY 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 CNTY 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 |
CNTY 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.
CNTY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CNTY. 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 CNTY
Collars on CNTY hedge an existing long CNTY 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.
CNTY thesis for this collar
The market-implied 1-standard-deviation range for CNTY extends from approximately $1.29 on the downside to $1.51 on the upside. A CNTY collar hedges an existing long CNTY 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 CNTY IV rank near 1.45% 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 CNTY at 26.20%. As a Consumer Cyclical name, CNTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CNTY-specific events.
CNTY 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. CNTY positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CNTY alongside the broader basket even when CNTY-specific fundamentals are unchanged. Always rebuild the position from current CNTY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CNTY?
- A collar on CNTY is the collar strategy applied to CNTY (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 CNTY stock trading near $1.40, the strikes shown on this page are snapped to the nearest listed CNTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CNTY 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 CNTY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.20%), 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 CNTY collar?
- The breakeven for the CNTY 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 CNTY market-implied 1-standard-deviation expected move is approximately 7.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CNTY?
- Collars on CNTY hedge an existing long CNTY 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 CNTY implied volatility affect this collar?
- CNTY ATM IV is at 26.20% with IV rank near 1.45%, 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.