CSGP Collar Strategy
CSGP (CoStar Group, Inc.), in the Real Estate sector, (Real Estate - Services industry), listed on NASDAQ.
CoStar Group, Inc. provides information, analytics, and online marketplace services to the commercial real estate, hospitality, residential, and related professionals industries in the United States, Canada, Europe, the Asia Pacific, and Latin America. It offers CoStar Property that provides inventory of office, industrial, retail, multifamily, hospitality, and student housing properties and land; CoStar COMPS, a robust database of comparable commercial real estate sales transactions; CoStar Market Analytics to view and report on aggregated market and submarket trends; and CoStar Tenant, an online business-to-business prospecting and analytical tool that provides tenant information. The company also provides Lease Comps and Analysis, a tool to capture, manage, and maintain lease data; CoStar Lease Analysis; Public Record, a searchable database of commercially-zoned parcels; CoStar Real Estate Manager, a real estate lease administration, portfolio management, and lease accounting compliance software solution; and CoStar Risk Analytics and CoStar Investment. In addition, it offers apartment marketing sites, such as ApartmentFinder.com, ForRent.com, ApartmentHomeLiving.com, WestsideRentals.com, AFTER55.com, CorporateHousing.com, ForRentUniversity.com, Apartamentos.com, and Off Campus Partners; LoopNet Premium Lister; LoopNet Diamond, Platinum, and Gold Ads; LandsofAmerica.com, LandAndFarm.com, and LandWatch.com for rural land for-sale; BizBuySell.com, BizQuest.com, and FindaFranchise.com for operating businesses and franchises for-sale; Ten-X, an online auction platform for commercial real estate; and HomeSnap, an online and mobile software platform, as well as Homes.com, a homes for sale listings site. CoStar Group, Inc. was founded in 1987 and is headquartered in Washington, the District of Columbia.
CSGP (CoStar Group, Inc.) trades in the Real Estate sector, specifically Real Estate - Services, with a market capitalization of approximately $13.06B, a trailing P/E of 521.88, a beta of 0.75 versus the broader market, a 52-week range of 31.78-97.43, average daily share volume of 6.6M, a public-listing history dating back to 1998, approximately 8K full-time employees. These structural characteristics shape how CSGP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places CSGP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 521.88 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 CSGP?
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 CSGP snapshot
As of May 15, 2026, spot at $32.61, ATM IV 52.70%, IV rank 16.16%, expected move 15.11%. The collar on CSGP 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 CSGP specifically: IV regime affects collar pricing on both sides; compressed CSGP IV at 52.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.11% (roughly $4.93 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 CSGP expiries trade a higher absolute premium for lower per-day decay. Position sizing on CSGP should anchor to the underlying notional of $32.61 per share and to the trader's directional view on CSGP stock.
CSGP collar setup
The CSGP 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 CSGP near $32.61, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CSGP 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 CSGP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $32.61 | long |
| Sell 1 | Call | $35.00 | $1.23 |
| Buy 1 | Put | $30.00 | $1.05 |
CSGP collar risk and reward
- Net Premium / Debit
- -$3,243.50
- Max Profit (per contract)
- $256.50
- Max Loss (per contract)
- -$243.50
- Breakeven(s)
- $32.44
- Risk / Reward Ratio
- 1.053
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.
CSGP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CSGP. 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% | -$243.50 |
| $7.22 | -77.9% | -$243.50 |
| $14.43 | -55.8% | -$243.50 |
| $21.64 | -33.6% | -$243.50 |
| $28.85 | -11.5% | -$243.50 |
| $36.06 | +10.6% | +$256.50 |
| $43.26 | +32.7% | +$256.50 |
| $50.47 | +54.8% | +$256.50 |
| $57.68 | +76.9% | +$256.50 |
| $64.89 | +99.0% | +$256.50 |
When traders use collar on CSGP
Collars on CSGP hedge an existing long CSGP 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.
CSGP thesis for this collar
The market-implied 1-standard-deviation range for CSGP extends from approximately $27.68 on the downside to $37.54 on the upside. A CSGP collar hedges an existing long CSGP 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 CSGP IV rank near 16.16% 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 CSGP at 52.70%. As a Real Estate name, CSGP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CSGP-specific events.
CSGP 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. CSGP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CSGP alongside the broader basket even when CSGP-specific fundamentals are unchanged. Always rebuild the position from current CSGP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CSGP?
- A collar on CSGP is the collar strategy applied to CSGP (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 CSGP stock trading near $32.61, the strikes shown on this page are snapped to the nearest listed CSGP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CSGP 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 CSGP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.70%), the computed maximum profit is $256.50 per contract and the computed maximum loss is -$243.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CSGP collar?
- The breakeven for the CSGP collar priced on this page is roughly $32.44 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 CSGP market-implied 1-standard-deviation expected move is approximately 15.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CSGP?
- Collars on CSGP hedge an existing long CSGP 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 CSGP implied volatility affect this collar?
- CSGP ATM IV is at 52.70% with IV rank near 16.16%, 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.