CVI Collar Strategy
CVI (CVR Energy, Inc.), in the Energy sector, (Oil & Gas Refining & Marketing industry), listed on NYSE.
CVR Energy, Inc., together with its subsidiaries, engages in the petroleum refining and nitrogen fertilizer manufacturing activities in the United States. It operates in two segments, Petroleum and Nitrogen Fertilizer. The Petroleum segment refines and markets gasoline, diesel fuel, and other refined products. It also owns and operates a coking medium-sour crude oil refinery in southeast Kansas; and a crude oil refinery in Wynnewood, Oklahoma, as well as supporting logistics assets. This segment primarily serves retailers, railroads, farm co-operatives, and other refiners/marketers. The Nitrogen Fertilizer segment owns and operates a nitrogen fertilizer plant in North America that utilizes a pet coke gasification process to produce nitrogen fertilizer products; and a nitrogen fertilizer facility in East Dubuque, Illinois that produces nitrogen fertilizers in the form of ammonia and urea ammonium nitrate (UAN).
CVI (CVR Energy, Inc.) trades in the Energy sector, specifically Oil & Gas Refining & Marketing, with a market capitalization of approximately $3.40B, a beta of 0.79 versus the broader market, a 52-week range of 19.62-41.67, average daily share volume of 1.4M, a public-listing history dating back to 2007, approximately 2K full-time employees. These structural characteristics shape how CVI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places CVI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. CVI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CVI?
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 CVI snapshot
As of May 15, 2026, spot at $34.08, ATM IV 61.00%, IV rank 45.98%, expected move 17.49%. The collar on CVI 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 CVI specifically: IV regime affects collar pricing on both sides; mid-range CVI IV at 61.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.49% (roughly $5.96 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 CVI expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVI should anchor to the underlying notional of $34.08 per share and to the trader's directional view on CVI stock.
CVI collar setup
The CVI 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 CVI near $34.08, the first option leg uses a $35.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVI 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 CVI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $34.08 | long |
| Sell 1 | Call | $35.78 | N/A |
| Buy 1 | Put | $32.38 | N/A |
CVI 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.
CVI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CVI. 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 CVI
Collars on CVI hedge an existing long CVI 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.
CVI thesis for this collar
The market-implied 1-standard-deviation range for CVI extends from approximately $28.12 on the downside to $40.04 on the upside. A CVI collar hedges an existing long CVI 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 CVI IV rank near 45.98% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CVI should anchor more to the directional view and the expected-move geometry. As a Energy name, CVI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVI-specific events.
CVI 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. CVI positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVI alongside the broader basket even when CVI-specific fundamentals are unchanged. Always rebuild the position from current CVI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CVI?
- A collar on CVI is the collar strategy applied to CVI (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 CVI stock trading near $34.08, the strikes shown on this page are snapped to the nearest listed CVI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVI 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 CVI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.00%), 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 CVI collar?
- The breakeven for the CVI 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 CVI market-implied 1-standard-deviation expected move is approximately 17.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CVI?
- Collars on CVI hedge an existing long CVI 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 CVI implied volatility affect this collar?
- CVI ATM IV is at 61.00% with IV rank near 45.98%, 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.