CVEO Collar Strategy
CVEO (Civeo Corporation), in the Industrials sector, (Specialty Business Services industry), listed on NYSE.
Civeo Corporation provides hospitality services to the natural resource industry in Canada, Australia, and the United States. The company develops lodges and villages; and mobile accommodations, including modular, skid-mounted accommodation, and central facilities that provide long-term and temporary work force accommodations. It also offers food, housekeeping, and maintenance services, as well as laundry, facility management and maintenance, water and wastewater treatment, power generation, communication systems, security, and logistics services; and camp management services. In addition, the company provides development activities for workforce accommodation facilities, including site selection, permitting, engineering and design, manufacturing management, and site construction services, as well as catering and managed services. It owns and operates 27 lodges and villages with approximately 28,000 rooms; and a fleet of mobile accommodation assets. The company serves oil, mining, engineering, and oilfield and mining service companies.
CVEO (Civeo Corporation) trades in the Industrials sector, specifically Specialty Business Services, with a market capitalization of approximately $364.1M, a beta of 0.73 versus the broader market, a 52-week range of 19.75-34.8, average daily share volume of 69K, a public-listing history dating back to 2014, approximately 3K full-time employees. These structural characteristics shape how CVEO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.73 places CVEO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CVEO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CVEO?
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 CVEO snapshot
As of May 15, 2026, spot at $34.13, ATM IV 55.30%, IV rank 13.73%, expected move 15.85%. The collar on CVEO 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 CVEO specifically: IV regime affects collar pricing on both sides; compressed CVEO IV at 55.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.85% (roughly $5.41 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 CVEO expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVEO should anchor to the underlying notional of $34.13 per share and to the trader's directional view on CVEO stock.
CVEO collar setup
The CVEO 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 CVEO near $34.13, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVEO 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 CVEO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $34.13 | long |
| Sell 1 | Call | $36.00 | $1.59 |
| Buy 1 | Put | $32.00 | $1.34 |
CVEO collar risk and reward
- Net Premium / Debit
- -$3,388.00
- Max Profit (per contract)
- $212.00
- Max Loss (per contract)
- -$188.00
- Breakeven(s)
- $33.88
- Risk / Reward Ratio
- 1.128
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.
CVEO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CVEO. 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% | -$188.00 |
| $7.56 | -77.9% | -$188.00 |
| $15.10 | -55.8% | -$188.00 |
| $22.65 | -33.6% | -$188.00 |
| $30.19 | -11.5% | -$188.00 |
| $37.74 | +10.6% | +$212.00 |
| $45.28 | +32.7% | +$212.00 |
| $52.83 | +54.8% | +$212.00 |
| $60.37 | +76.9% | +$212.00 |
| $67.92 | +99.0% | +$212.00 |
When traders use collar on CVEO
Collars on CVEO hedge an existing long CVEO 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.
CVEO thesis for this collar
The market-implied 1-standard-deviation range for CVEO extends from approximately $28.72 on the downside to $39.54 on the upside. A CVEO collar hedges an existing long CVEO 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 CVEO IV rank near 13.73% 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 CVEO at 55.30%. As a Industrials name, CVEO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVEO-specific events.
CVEO 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. CVEO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVEO alongside the broader basket even when CVEO-specific fundamentals are unchanged. Always rebuild the position from current CVEO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CVEO?
- A collar on CVEO is the collar strategy applied to CVEO (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 CVEO stock trading near $34.13, the strikes shown on this page are snapped to the nearest listed CVEO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVEO 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 CVEO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 55.30%), the computed maximum profit is $212.00 per contract and the computed maximum loss is -$188.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CVEO collar?
- The breakeven for the CVEO collar priced on this page is roughly $33.88 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 CVEO market-implied 1-standard-deviation expected move is approximately 15.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CVEO?
- Collars on CVEO hedge an existing long CVEO 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 CVEO implied volatility affect this collar?
- CVEO ATM IV is at 55.30% with IV rank near 13.73%, 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.