CVLT Collar Strategy
CVLT (Commvault Systems, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Commvault Systems, Inc. provides a cyber resilience platform for protecting and recovering data and cloud-native applications in the Americas and internationally. The company offers Operational Recovery, which provides backup, verifiable recovery, and cost-optimized cloud workload mobility to ensure data availability and granular recovery; autonomous recovery for automated disaster and cyber recovery use cases to deliver backup, replication, and disaster recovery for all workloads on-premises, in the cloud, across various clouds, and in hybrid environments; and Cyber Recovery for threat scanning to hunt for threats within backup data, cyber deception, and threat detection to provide early warning of attacks. It also provides Commvault Cloud’s Cleanroom Recovery for organizations to be ready to recover by providing a clean, isolated, and on-demand recovery location in the cloud, as well as the ability to test their incident response plans and recover; and Commvault HyperScale X, an intuitive, easy-to-deploy and scale-out, and integrated data protection solution to support enterprises' transformations, such as legacy scale-up infrastructures, hybrid cloud, container, and virtualized environments. In addition, the company offers Commvault Cloud Air Gap Protect, an integrated air-gapped cloud storage target that enables IT organizations to adopt cloud storage to ease digital transformation, reduce risks, and scale; and Commvault's Compliance, which provides built-in reporting, auditing, and logging to help ensure data is not modified or deleted for legal and compliance purposes. Further, it provides Commvault Cloud Rewind to restore an organization’s cloud application and data environment; and Commvault’s Clumio Backtrack to revert objects and datasets stored in Amazon Simple Storage Service (Amazon S3), as well as professional and customer support services. The company was incorporated in 1996 and is headquartered in Tinton Falls, New Jersey.
CVLT (Commvault Systems, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $5.87B, a trailing P/E of 85.80, a beta of 0.80 versus the broader market, a 52-week range of 71.75-198.18, average daily share volume of 870K, a public-listing history dating back to 2006, approximately 3K full-time employees. These structural characteristics shape how CVLT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places CVLT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 85.80 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 CVLT?
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.
CVLT snapshot
As of August 14, 2026, spot at $147.13, ATM IV 40.50%, IV rank 12.07%, expected move 11.61%. The collar on CVLT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on CVLT specifically: IV regime affects collar pricing on both sides; compressed CVLT IV at 40.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.61% (roughly $17.08 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CVLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVLT should anchor to the underlying notional of $147.13 per share and to the trader's directional view on CVLT stock.
CVLT collar setup
The CVLT collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CVLT at $147.13 on that close, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVLT chain at a 35-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 CVLT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $147.13 | long |
| Sell 1 | Call | $155.00 | $4.03 |
| Buy 1 | Put | $140.00 | $4.18 |
CVLT collar risk and reward
- Net Premium / Debit
- -$14,728.00
- Max Profit (per contract)
- $772.00
- Max Loss (per contract)
- -$728.00
- Breakeven(s)
- $147.28
- Risk / Reward Ratio
- 1.060
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.
CVLT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CVLT. 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% | -$728.00 |
| $32.54 | -77.9% | -$728.00 |
| $65.07 | -55.8% | -$728.00 |
| $97.60 | -33.7% | -$728.00 |
| $130.13 | -11.6% | -$728.00 |
| $162.66 | +10.6% | +$772.00 |
| $195.19 | +32.7% | +$772.00 |
| $227.72 | +54.8% | +$772.00 |
| $260.25 | +76.9% | +$772.00 |
| $292.78 | +99.0% | +$772.00 |
When traders use collar on CVLT
Collars on CVLT hedge an existing long CVLT 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.
CVLT thesis for this collar
The market-implied 1-standard-deviation range for CVLT extends from approximately $130.05 on the downside to $164.21 on the upside. A CVLT collar hedges an existing long CVLT 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 CVLT IV rank near 12.07% 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 CVLT at 40.50%. As a Technology name, CVLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVLT-specific events.
CVLT 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. CVLT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVLT alongside the broader basket even when CVLT-specific fundamentals are unchanged. Always rebuild the position from current CVLT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CVLT?
- A collar on CVLT is the collar strategy applied to CVLT (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 CVLT stock at $147.13 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed CVLT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CVLT 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 CVLT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.50%), the computed maximum profit is $772.00 per contract and the computed maximum loss is -$728.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CVLT collar?
- The breakeven for the CVLT collar priced on this page is roughly $147.28 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CVLT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CVLT?
- Collars on CVLT hedge an existing long CVLT 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 CVLT implied volatility affect this collar?
- CVLT ATM IV is at 40.50% with IV rank near 12.07%, 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.