CUBE Collar Strategy
CUBE (CubeSmart), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and secure storage space for residential and commercial customers. According to the 2020 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.
CUBE (CubeSmart) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $9.08B, a trailing P/E of 27.75, a beta of 1.11 versus the broader market, a 52-week range of 35.09-44.13, average daily share volume of 2.4M, a public-listing history dating back to 2004, approximately 3K full-time employees. These structural characteristics shape how CUBE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places CUBE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CUBE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CUBE?
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 CUBE snapshot
As of May 15, 2026, spot at $38.32, ATM IV 28.50%, IV rank 6.22%, expected move 8.17%. The collar on CUBE 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 CUBE specifically: IV regime affects collar pricing on both sides; compressed CUBE IV at 28.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.17% (roughly $3.13 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 CUBE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CUBE should anchor to the underlying notional of $38.32 per share and to the trader's directional view on CUBE stock.
CUBE collar setup
The CUBE 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 CUBE near $38.32, the first option leg uses a $40.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CUBE 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 CUBE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.32 | long |
| Sell 1 | Call | $40.24 | N/A |
| Buy 1 | Put | $36.40 | N/A |
CUBE 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.
CUBE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CUBE. 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 CUBE
Collars on CUBE hedge an existing long CUBE 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.
CUBE thesis for this collar
The market-implied 1-standard-deviation range for CUBE extends from approximately $35.19 on the downside to $41.45 on the upside. A CUBE collar hedges an existing long CUBE 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 CUBE IV rank near 6.22% 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 CUBE at 28.50%. As a Real Estate name, CUBE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CUBE-specific events.
CUBE 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. CUBE positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CUBE alongside the broader basket even when CUBE-specific fundamentals are unchanged. Always rebuild the position from current CUBE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CUBE?
- A collar on CUBE is the collar strategy applied to CUBE (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 CUBE stock trading near $38.32, the strikes shown on this page are snapped to the nearest listed CUBE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CUBE 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 CUBE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.50%), 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 CUBE collar?
- The breakeven for the CUBE collar priced on this page is no defined breakeven on the modeled curve 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 CUBE market-implied 1-standard-deviation expected move is approximately 8.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CUBE?
- Collars on CUBE hedge an existing long CUBE 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 CUBE implied volatility affect this collar?
- CUBE ATM IV is at 28.50% with IV rank near 6.22%, 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.