DRVN Collar Strategy
DRVN (Driven Brands Holdings Inc.), in the Consumer Cyclical sector, (Auto - Dealerships industry), listed on NASDAQ.
Driven Brands Holdings Inc., together with its subsidiaries, provides automotive services to retail and commercial customers in the United States, Canada, and internationally. The company offers various services, such as paint, collision, glass, vehicle repair, car wash, oil change, and maintenance services. It also distributes automotive parts, including radiators, air conditioning components, and exhaust products to automotive repair shops, auto parts stores, body shops, and other auto repair outlets; windshields and glass accessories through a network of distribution centers; and consumable products, such as oil filters and wiper blades, as well as provides training services to repair and maintenance, and paint and collision shops. The company sells its products and services under the Take 5 Oil Change, IMO, CARSTAR, ABRA, Fix Auto, Maaco, Meineke, Uniban, 1-800-Radiator & A/C, PH Vitres D'Autos, Spire Supply, and Automotive Training Institute names. As of December 25, 2021, it operated 4,412 company-operated, franchised, and independently-operated stores. Driven Brands Holdings Inc. was founded in 1972 and is headquartered in Charlotte, North Carolina.
DRVN (Driven Brands Holdings Inc.) trades in the Consumer Cyclical sector, specifically Auto - Dealerships, with a market capitalization of approximately $2.09B, a beta of 0.97 versus the broader market, a 52-week range of 9.8-19.74, average daily share volume of 2.2M, a public-listing history dating back to 2021, approximately 11K full-time employees. These structural characteristics shape how DRVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places DRVN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on DRVN?
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 DRVN snapshot
As of May 15, 2026, spot at $12.96, ATM IV 87.70%, IV rank 15.55%, expected move 25.14%. The collar on DRVN 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 DRVN specifically: IV regime affects collar pricing on both sides; compressed DRVN IV at 87.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.14% (roughly $3.26 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 DRVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on DRVN should anchor to the underlying notional of $12.96 per share and to the trader's directional view on DRVN stock.
DRVN collar setup
The DRVN 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 DRVN near $12.96, the first option leg uses a $13.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DRVN 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 DRVN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.96 | long |
| Sell 1 | Call | $13.61 | N/A |
| Buy 1 | Put | $12.31 | N/A |
DRVN 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.
DRVN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DRVN. 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 DRVN
Collars on DRVN hedge an existing long DRVN 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.
DRVN thesis for this collar
The market-implied 1-standard-deviation range for DRVN extends from approximately $9.70 on the downside to $16.22 on the upside. A DRVN collar hedges an existing long DRVN 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 DRVN IV rank near 15.55% 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 DRVN at 87.70%. As a Consumer Cyclical name, DRVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DRVN-specific events.
DRVN 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. DRVN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DRVN alongside the broader basket even when DRVN-specific fundamentals are unchanged. Always rebuild the position from current DRVN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DRVN?
- A collar on DRVN is the collar strategy applied to DRVN (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 DRVN stock trading near $12.96, the strikes shown on this page are snapped to the nearest listed DRVN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DRVN 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 DRVN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 87.70%), 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 DRVN collar?
- The breakeven for the DRVN 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 DRVN market-implied 1-standard-deviation expected move is approximately 25.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DRVN?
- Collars on DRVN hedge an existing long DRVN 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 DRVN implied volatility affect this collar?
- DRVN ATM IV is at 87.70% with IV rank near 15.55%, 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.