DLTH Collar Strategy
DLTH (Duluth Holdings Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NASDAQ.
Duluth Holdings Inc. sells casual wear, workwear, and accessories for men and women under the Duluth Trading brand in the United States. It provides shirts, pants, underwear, outerwear, footwear, accessories, and hard goods. The company offers its products under various trademarks, trade names, and service marks, including Alaskan Hardgear, Armachillo, Ballroom, Cab Commander, Crouch Gusset, Dry on the Fly, Duluth Trading Co, Duluthflex, Fire Hose, Longtail T, No Polo Shirt, No Yank, Wild Boar Mocs, and Buck Naked. The company markets its products through its Website, catalogs, and retail stores. As of January 30, 2022, it operated 62 retail stores and three outlet stores. The company was formerly known as GEMPLER'S, Inc.
DLTH (Duluth Holdings Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $116.3M, a beta of 1.46 versus the broader market, a 52-week range of 1.72-4.66, average daily share volume of 315K, a public-listing history dating back to 2015, approximately 807 full-time employees. These structural characteristics shape how DLTH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.46 indicates DLTH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on DLTH?
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 DLTH snapshot
As of May 15, 2026, spot at $3.03, ATM IV 122.10%, IV rank 37.48%, expected move 35.00%. The collar on DLTH 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 DLTH specifically: IV regime affects collar pricing on both sides; mid-range DLTH IV at 122.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 35.00% (roughly $1.06 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 DLTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on DLTH should anchor to the underlying notional of $3.03 per share and to the trader's directional view on DLTH stock.
DLTH collar setup
The DLTH 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 DLTH near $3.03, the first option leg uses a $3.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DLTH 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 DLTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.03 | long |
| Sell 1 | Call | $3.18 | N/A |
| Buy 1 | Put | $2.88 | N/A |
DLTH 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.
DLTH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DLTH. 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 DLTH
Collars on DLTH hedge an existing long DLTH 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.
DLTH thesis for this collar
The market-implied 1-standard-deviation range for DLTH extends from approximately $1.97 on the downside to $4.09 on the upside. A DLTH collar hedges an existing long DLTH 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 DLTH IV rank near 37.48% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on DLTH should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, DLTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DLTH-specific events.
DLTH 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. DLTH positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DLTH alongside the broader basket even when DLTH-specific fundamentals are unchanged. Always rebuild the position from current DLTH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DLTH?
- A collar on DLTH is the collar strategy applied to DLTH (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 DLTH stock trading near $3.03, the strikes shown on this page are snapped to the nearest listed DLTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DLTH 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 DLTH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 122.10%), 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 DLTH collar?
- The breakeven for the DLTH 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 DLTH market-implied 1-standard-deviation expected move is approximately 35.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DLTH?
- Collars on DLTH hedge an existing long DLTH 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 DLTH implied volatility affect this collar?
- DLTH ATM IV is at 122.10% with IV rank near 37.48%, 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.