CRUS Collar Strategy
CRUS (Cirrus Logic, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Cirrus Logic, Inc., a fabless semiconductor company, provides low-power and high-precision mixed-signal processing solutions in the United States and internationally. It offers portable products, including codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with digital signal processer; boosted amplifiers; digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, hearing augmentation, and active noise cancellation. The company's audio products are used in smartphones, tablets, wireless headsets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. It also provides high-performance mixed-signal products, such as haptic driver and sensing solutions, camera controllers, power conversion, and control ICs and fast-charging ICs used in various industrial and energy applications comprising digital utility meters, power supplies, energy control, energy measurement, and energy exploration. The company markets and sells its products through direct sales force, external sales representatives, and distributors. Cirrus Logic, Inc. was incorporated in 1984 and is headquartered in Austin, Texas.
CRUS (Cirrus Logic, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $8.49B, a trailing P/E of 20.41, a beta of 1.15 versus the broader market, a 52-week range of 92.02-179, average daily share volume of 639K, a public-listing history dating back to 1989, approximately 2K full-time employees. These structural characteristics shape how CRUS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.15 places CRUS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on CRUS?
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 CRUS snapshot
As of May 15, 2026, spot at $160.14, ATM IV 43.90%, IV rank 28.13%, expected move 12.59%. The collar on CRUS 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 CRUS specifically: IV regime affects collar pricing on both sides; compressed CRUS IV at 43.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.59% (roughly $20.15 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 CRUS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRUS should anchor to the underlying notional of $160.14 per share and to the trader's directional view on CRUS stock.
CRUS collar setup
The CRUS 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 CRUS near $160.14, the first option leg uses a $170.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRUS 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 CRUS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $160.14 | long |
| Sell 1 | Call | $170.00 | $5.00 |
| Buy 1 | Put | $150.00 | $4.05 |
CRUS collar risk and reward
- Net Premium / Debit
- -$15,919.00
- Max Profit (per contract)
- $1,081.00
- Max Loss (per contract)
- -$919.00
- Breakeven(s)
- $159.19
- Risk / Reward Ratio
- 1.176
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.
CRUS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CRUS. 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% | -$919.00 |
| $35.42 | -77.9% | -$919.00 |
| $70.82 | -55.8% | -$919.00 |
| $106.23 | -33.7% | -$919.00 |
| $141.64 | -11.6% | -$919.00 |
| $177.04 | +10.6% | +$1,081.00 |
| $212.45 | +32.7% | +$1,081.00 |
| $247.86 | +54.8% | +$1,081.00 |
| $283.26 | +76.9% | +$1,081.00 |
| $318.67 | +99.0% | +$1,081.00 |
When traders use collar on CRUS
Collars on CRUS hedge an existing long CRUS 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.
CRUS thesis for this collar
The market-implied 1-standard-deviation range for CRUS extends from approximately $139.99 on the downside to $180.29 on the upside. A CRUS collar hedges an existing long CRUS 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 CRUS IV rank near 28.13% 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 CRUS at 43.90%. As a Technology name, CRUS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRUS-specific events.
CRUS 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. CRUS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRUS alongside the broader basket even when CRUS-specific fundamentals are unchanged. Always rebuild the position from current CRUS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CRUS?
- A collar on CRUS is the collar strategy applied to CRUS (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 CRUS stock trading near $160.14, the strikes shown on this page are snapped to the nearest listed CRUS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRUS 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 CRUS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.90%), the computed maximum profit is $1,081.00 per contract and the computed maximum loss is -$919.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRUS collar?
- The breakeven for the CRUS collar priced on this page is roughly $159.19 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 CRUS market-implied 1-standard-deviation expected move is approximately 12.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CRUS?
- Collars on CRUS hedge an existing long CRUS 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 CRUS implied volatility affect this collar?
- CRUS ATM IV is at 43.90% with IV rank near 28.13%, 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.