CVU Collar Strategy
CVU (CPI Aerostructures, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on AMEX.
CPI Aerostructures, Inc. engages in the contract production of structural aircraft parts for fixed wing aircraft and helicopters in the commercial and defense markets. The company also offers aero systems, such as reconnaissance pod structures and fuel panel systems; and supplies parts for maintenance, repair, and overhaul (MRO), as well as kitting contracts. In addition, it operates as a subcontractor for defense contractors and commercial contractors, as well as a contractor for the United States Department of Defense. Further, the company offers engineering, program management, supply chain management, kitting, and MRO services. Additionally, it offers machine gunner window assemblies, hover infrared suppression system module assemblies, wing sets and spares kits, lock assemblies, canopy activation drive shaft assemblies, rudder island and drag chute canister assemblies, composite electronics racks, structural wing components, fixed leading edges, and engine inlet assemblies. The company was formerly known as Consortium of Precision Industries, Inc. and changed its name to CPI Aerostructures, Inc. in July 1992.
CVU (CPI Aerostructures, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $49.5M, a beta of 0.87 versus the broader market, a 52-week range of 2.02-5.4, average daily share volume of 102K, a public-listing history dating back to 1992, approximately 212 full-time employees. These structural characteristics shape how CVU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places CVU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on CVU?
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 CVU snapshot
As of May 15, 2026, spot at $3.68, ATM IV 122.50%, IV rank 27.40%, expected move 35.12%. The collar on CVU 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 CVU specifically: IV regime affects collar pricing on both sides; compressed CVU IV at 122.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 35.12% (roughly $1.29 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 CVU expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVU should anchor to the underlying notional of $3.68 per share and to the trader's directional view on CVU stock.
CVU collar setup
The CVU 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 CVU near $3.68, the first option leg uses a $3.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVU 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 CVU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.68 | long |
| Sell 1 | Call | $3.86 | N/A |
| Buy 1 | Put | $3.50 | N/A |
CVU 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.
CVU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CVU. 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 CVU
Collars on CVU hedge an existing long CVU 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.
CVU thesis for this collar
The market-implied 1-standard-deviation range for CVU extends from approximately $2.39 on the downside to $4.97 on the upside. A CVU collar hedges an existing long CVU 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 CVU IV rank near 27.40% 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 CVU at 122.50%. As a Industrials name, CVU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVU-specific events.
CVU 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. CVU positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVU alongside the broader basket even when CVU-specific fundamentals are unchanged. Always rebuild the position from current CVU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CVU?
- A collar on CVU is the collar strategy applied to CVU (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 CVU stock trading near $3.68, the strikes shown on this page are snapped to the nearest listed CVU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVU 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 CVU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 122.50%), 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 CVU collar?
- The breakeven for the CVU 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 CVU market-implied 1-standard-deviation expected move is approximately 35.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CVU?
- Collars on CVU hedge an existing long CVU 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 CVU implied volatility affect this collar?
- CVU ATM IV is at 122.50% with IV rank near 27.40%, 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.