CR Collar Strategy
CR (Crane Company), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Crane Company, together with its subsidiaries, manufactures and sells engineered industrial products in the Americas, Europe, the Middle East, Asia, and Australia. The company has four business segments: Aerospace & Electronics, Process Flow Technologies, Payment & Merchandising Technologies, and Engineered Materials. The Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace, and the military aerospace, defense, and space markets. This segment also offers pressure sensors for aircraft engine control, aircraft braking systems for fighter jets, power conversion solutions for spacecraft, and lubrication systems. The Process Flow Technologies segment provides engineered fluid handling equipment for mission critical applications. It offers process valves and related products, commercial valves, and pumps and systems.
CR (Crane Company) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $10.37B, a trailing P/E of 31.72, a beta of 1.14 versus the broader market, a 52-week range of 159.58-214.31, average daily share volume of 500K, a public-listing history dating back to 2023, approximately 8K full-time employees. These structural characteristics shape how CR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.14 places CR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CR?
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 CR snapshot
As of May 15, 2026, spot at $172.06, ATM IV 35.90%, IV rank 35.39%, expected move 10.29%. The collar on CR 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 CR specifically: IV regime affects collar pricing on both sides; mid-range CR IV at 35.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.29% (roughly $17.71 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 CR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CR should anchor to the underlying notional of $172.06 per share and to the trader's directional view on CR stock.
CR collar setup
The CR 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 CR near $172.06, the first option leg uses a $180.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CR 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 CR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $172.06 | long |
| Sell 1 | Call | $180.00 | $4.45 |
| Buy 1 | Put | $165.00 | $4.40 |
CR collar risk and reward
- Net Premium / Debit
- -$17,201.00
- Max Profit (per contract)
- $799.00
- Max Loss (per contract)
- -$701.00
- Breakeven(s)
- $172.01
- Risk / Reward Ratio
- 1.140
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.
CR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CR. 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% | -$701.00 |
| $38.05 | -77.9% | -$701.00 |
| $76.09 | -55.8% | -$701.00 |
| $114.14 | -33.7% | -$701.00 |
| $152.18 | -11.6% | -$701.00 |
| $190.22 | +10.6% | +$799.00 |
| $228.26 | +32.7% | +$799.00 |
| $266.31 | +54.8% | +$799.00 |
| $304.35 | +76.9% | +$799.00 |
| $342.39 | +99.0% | +$799.00 |
When traders use collar on CR
Collars on CR hedge an existing long CR 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.
CR thesis for this collar
The market-implied 1-standard-deviation range for CR extends from approximately $154.35 on the downside to $189.77 on the upside. A CR collar hedges an existing long CR 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 CR IV rank near 35.39% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CR should anchor more to the directional view and the expected-move geometry. As a Industrials name, CR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CR-specific events.
CR 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. CR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CR alongside the broader basket even when CR-specific fundamentals are unchanged. Always rebuild the position from current CR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CR?
- A collar on CR is the collar strategy applied to CR (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 CR stock trading near $172.06, the strikes shown on this page are snapped to the nearest listed CR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CR 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 CR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.90%), the computed maximum profit is $799.00 per contract and the computed maximum loss is -$701.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CR collar?
- The breakeven for the CR collar priced on this page is roughly $172.01 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 CR market-implied 1-standard-deviation expected move is approximately 10.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CR?
- Collars on CR hedge an existing long CR 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 CR implied volatility affect this collar?
- CR ATM IV is at 35.90% with IV rank near 35.39%, 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.