COLM Collar Strategy
COLM (Columbia Sportswear Company), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NASDAQ.
Columbia Sportswear Company, together with its subsidiaries, designs, sources, markets, and distributes outdoor, active, and everyday lifestyle apparel, footwear, accessories, and equipment in the United States, Latin America, the Asia Pacific, Europe, the Middle East, Africa, and Canada. The company provides apparel, accessories, and equipment that are used in various activities, such as skiing, snowboarding, hiking, climbing, mountaineering, camping, hunting, fishing, trail running, water sports, yoga, golf, and adventure travel. It also offers footwear products that include lightweight hiking boots, trail running shoes, rugged cold weather boots for activities on snow and ice, sandals and shoes for use in water activities, and function-first fashion footwear and casual shoes for everyday use. The company sells its products under the Columbia, Mountain Hardwear, SOREL, and prAna brand names through the company owned network of branded and outlet retail stores, brand-specific e-commerce sites, and concession-based arrangements with third-parties at branded outlet and shop-in-shop retail locations, as well as through independently operated specialty outdoor and sporting goods stores, sporting goods chains, department store chains, Internet retailers, and international distributors. As of December 31, 2021, it operated approximately 455 retail stores. The company was founded in 1938 and is headquartered in Portland, Oregon.
COLM (Columbia Sportswear Company) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $2.97B, a trailing P/E of 18.05, a beta of 0.91 versus the broader market, a 52-week range of 47.47-67.91, average daily share volume of 635K, a public-listing history dating back to 1998, approximately 10K full-time employees. These structural characteristics shape how COLM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places COLM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. COLM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on COLM?
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 COLM snapshot
As of May 15, 2026, spot at $58.05, ATM IV 35.60%, IV rank 35.72%, expected move 10.21%. The collar on COLM 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 COLM specifically: IV regime affects collar pricing on both sides; mid-range COLM IV at 35.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.21% (roughly $5.92 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 COLM expiries trade a higher absolute premium for lower per-day decay. Position sizing on COLM should anchor to the underlying notional of $58.05 per share and to the trader's directional view on COLM stock.
COLM collar setup
The COLM 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 COLM near $58.05, the first option leg uses a $60.95 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COLM 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 COLM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $58.05 | long |
| Sell 1 | Call | $60.95 | N/A |
| Buy 1 | Put | $55.15 | N/A |
COLM 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.
COLM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on COLM. 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 COLM
Collars on COLM hedge an existing long COLM 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.
COLM thesis for this collar
The market-implied 1-standard-deviation range for COLM extends from approximately $52.13 on the downside to $63.97 on the upside. A COLM collar hedges an existing long COLM 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 COLM IV rank near 35.72% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on COLM should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, COLM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COLM-specific events.
COLM 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. COLM positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COLM alongside the broader basket even when COLM-specific fundamentals are unchanged. Always rebuild the position from current COLM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on COLM?
- A collar on COLM is the collar strategy applied to COLM (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 COLM stock trading near $58.05, the strikes shown on this page are snapped to the nearest listed COLM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are COLM 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 COLM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.60%), 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 COLM collar?
- The breakeven for the COLM 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 COLM market-implied 1-standard-deviation expected move is approximately 10.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on COLM?
- Collars on COLM hedge an existing long COLM 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 COLM implied volatility affect this collar?
- COLM ATM IV is at 35.60% with IV rank near 35.72%, 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.