CPRI Collar Strategy
CPRI (Capri Holdings Limited), in the Consumer Cyclical sector, (Apparel - Footwear & Accessories industry), listed on NYSE.
Capri Holdings Limited engages in the design, marketing, distribution, and retail of branded women’s and men’s apparel, footwear, and accessories in the United States, Canada, Latin America, Europe, the Middle East, Africa, Asia, and the Oceania. It operates through three segments: Versace, Jimmy Choo, and Michael Kors. The company offers ready-to-wear, eyewear, watches, jewelry, fragrances, home furnishings, handbags, small leather goods, scarves and belts, and shoes and related accessories through a distribution network, including boutiques, and department and specialty stores, as well as through e-commerce sites. It also undertakes licensing agreements relating to manufacture and sale of watches, jewelry, eyewear, and fragrances. The company was formerly known as Michael Kors Holdings Limited and changed its name to Capri Holdings Limited in December 2018. Capri Holdings Limited was founded in 1981 and is headquartered in London, the United Kingdom.
CPRI (Capri Holdings Limited) trades in the Consumer Cyclical sector, specifically Apparel - Footwear & Accessories, with a market capitalization of approximately $2.22B, a trailing P/E of 11.38, a beta of 1.29 versus the broader market, a 52-week range of 12.4-28.27, average daily share volume of 4.3M, a public-listing history dating back to 2011, approximately 15K full-time employees. These structural characteristics shape how CPRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.29 places CPRI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.38 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on CPRI?
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.
CPRI snapshot
As of November 13, 2026, spot at $21.42, ATM IV 43.80%, IV rank 23.78%, expected move 12.56%. The collar on CPRI below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on CPRI specifically: IV regime affects collar pricing on both sides; compressed CPRI IV at 43.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.56% (roughly $2.69 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CPRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPRI should anchor to the underlying notional of $21.42 per share and to the trader's directional view on CPRI stock.
CPRI collar setup
The CPRI collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CPRI at $21.42 on that close, the first option leg uses a $22.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPRI chain at a 35-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 CPRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.42 | long |
| Sell 1 | Call | $22.50 | $0.70 |
| Buy 1 | Put | $20.00 | $0.53 |
CPRI collar risk and reward
- Net Premium / Debit
- -$2,124.50
- Max Profit (per contract)
- $125.50
- Max Loss (per contract)
- -$124.50
- Breakeven(s)
- $21.25
- Risk / Reward Ratio
- 1.008
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.
CPRI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CPRI. 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% | -$124.50 |
| $4.74 | -77.8% | -$124.50 |
| $9.48 | -55.7% | -$124.50 |
| $14.21 | -33.6% | -$124.50 |
| $18.95 | -11.5% | -$124.50 |
| $23.68 | +10.6% | +$125.50 |
| $28.42 | +32.7% | +$125.50 |
| $33.15 | +54.8% | +$125.50 |
| $37.89 | +76.9% | +$125.50 |
| $42.62 | +99.0% | +$125.50 |
When traders use collar on CPRI
Collars on CPRI hedge an existing long CPRI 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.
CPRI thesis for this collar
The market-implied 1-standard-deviation range for CPRI extends from approximately $18.73 on the downside to $24.11 on the upside. A CPRI collar hedges an existing long CPRI 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 CPRI IV rank near 23.78% 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 CPRI at 43.80%. As a Consumer Cyclical name, CPRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPRI-specific events.
CPRI 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. CPRI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPRI alongside the broader basket even when CPRI-specific fundamentals are unchanged. Always rebuild the position from current CPRI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CPRI?
- A collar on CPRI is the collar strategy applied to CPRI (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 CPRI stock at $21.42 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed CPRI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CPRI 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 CPRI collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 43.80%), the computed maximum profit is $125.50 per contract and the computed maximum loss is -$124.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CPRI collar?
- The breakeven for the CPRI collar priced on this page is roughly $21.25 at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CPRI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CPRI?
- Collars on CPRI hedge an existing long CPRI 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 CPRI implied volatility affect this collar?
- CPRI ATM IV is at 43.80% with IV rank near 23.78%, 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.