CPSH Collar Strategy
CPSH (CPS Technologies Corporation), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
Headquartered in Norton, Massachusetts, and established in 1984, CPS Technologies Corporation is a provider of cutting-edge material solutions. The company's core offering consists of metal matrix composites, innovative blends of metal and ceramic, tailored for diverse high-tech applications. These composites are integral to products serving a broad spectrum of industries, including transportation (such as baseplates for motor controllers in electric trains, subway cars, and hybrid/electric vehicles), energy (wind turbines), computing and internet infrastructure (lids and heatspreaders for integrated circuits in switches and routers), telecommunications, aerospace (hermetic packages for radar, satellite, and avionics), defense, and the oil and gas sector. Additionally, CPS Technologies manufactures baseplates and housings for modules utilizing wide band gap semiconductors and undertakes the assembly of housings and packages for hybrid circuits. The company primarily distributes its products to microelectronics systems manufacturers across the United States, Europe, and Asia. Previously known as Ceramics Process Systems Corporation, the company adopted its current name in March 2007.
CPSH (CPS Technologies Corporation) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $69.6M, a trailing P/E of 2,145.31, a beta of 2.12 versus the broader market, a 52-week range of 2.87-14.39, average daily share volume of 1.4M, a public-listing history dating back to 1994, approximately 117 full-time employees. These structural characteristics shape how CPSH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.12 indicates CPSH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 2,145.31 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on CPSH?
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.
CPSH snapshot
As of August 14, 2026, spot at $4.36, ATM IV 110.60%, IV rank 36.06%, expected move 31.71%. The collar on CPSH below is built from the 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 CPSH specifically: IV regime affects collar pricing on both sides; mid-range CPSH IV at 110.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.71% (roughly $1.38 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 CPSH expiries trade a higher absolute premium for lower per-day decay. Position sizing on CPSH should anchor to the underlying notional of $4.36 per share and to the trader's directional view on CPSH stock.
CPSH collar setup
The CPSH 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 CPSH at $4.36 on that close, the first option leg uses a $4.58 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CPSH 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 CPSH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.36 | long |
| Sell 1 | Call | $4.58 | N/A |
| Buy 1 | Put | $4.14 | N/A |
CPSH 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.
CPSH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CPSH. 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 CPSH
Collars on CPSH hedge an existing long CPSH 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.
CPSH thesis for this collar
The market-implied 1-standard-deviation range for CPSH extends from approximately $2.98 on the downside to $5.74 on the upside. A CPSH collar hedges an existing long CPSH 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 CPSH IV rank near 36.06% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CPSH should anchor more to the directional view and the expected-move geometry. As a Industrials name, CPSH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CPSH-specific events.
CPSH 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. CPSH positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CPSH alongside the broader basket even when CPSH-specific fundamentals are unchanged. Always rebuild the position from current CPSH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CPSH?
- A collar on CPSH is the collar strategy applied to CPSH (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 CPSH stock at $4.36 on the most recent close, the strikes shown on this page are snapped to the nearest listed CPSH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CPSH 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 CPSH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 110.60%), 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 CPSH collar?
- The breakeven for the CPSH collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 CPSH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 31.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CPSH?
- Collars on CPSH hedge an existing long CPSH 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 CPSH implied volatility affect this collar?
- CPSH ATM IV is at 110.60% with IV rank near 36.06%, 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.