EGBN Collar Strategy
EGBN (Eagle Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Eagle Bancorp, Inc. operates as the bank holding company for EagleBank that provides commercial and consumer banking services primarily in the United States. The company also offers various commercial and consumer lending products comprising commercial loans for working capital, equipment purchases, real estate lines of credit, and government contract financing; asset based lending and accounts receivable financing; construction and commercial real estate loans; business equipment financing; consumer home equity lines of credit, personal lines of credit, and term loans; consumer installment loans, such as auto and personal loans; personal credit cards; and residential mortgage loans. In addition, it provides online and mobile banking services; and other services, including cash management services, business sweep accounts, lock boxes, remote deposit captures, account reconciliation services, merchant card services, safety deposit boxes, and automated clearing house origination, as well as after-hours depositories and ATM services. Further, the company offers insurance products and services through a referral program. The company serves sole proprietors, small and medium-sized businesses, partnerships, corporations, non-profit organizations and associations, and individuals, as well as investors. As of December 31, 2021, it operated seventeen banking offices comprising 6 in Suburban Maryland, 5 in the District of Columbia, and 6 in Northern Virginia.
EGBN (Eagle Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $761.5M, a beta of 0.96 versus the broader market, a 52-week range of 15.03-29.26, average daily share volume of 297K, a public-listing history dating back to 1999, approximately 451 full-time employees. These structural characteristics shape how EGBN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places EGBN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EGBN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EGBN?
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 EGBN snapshot
As of May 15, 2026, spot at $24.40, ATM IV 35.90%, IV rank 8.26%, expected move 10.29%. The collar on EGBN 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 EGBN specifically: IV regime affects collar pricing on both sides; compressed EGBN IV at 35.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.29% (roughly $2.51 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 EGBN expiries trade a higher absolute premium for lower per-day decay. Position sizing on EGBN should anchor to the underlying notional of $24.40 per share and to the trader's directional view on EGBN stock.
EGBN collar setup
The EGBN 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 EGBN near $24.40, the first option leg uses a $25.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EGBN 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 EGBN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $24.40 | long |
| Sell 1 | Call | $25.62 | N/A |
| Buy 1 | Put | $23.18 | N/A |
EGBN 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.
EGBN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EGBN. 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 EGBN
Collars on EGBN hedge an existing long EGBN 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.
EGBN thesis for this collar
The market-implied 1-standard-deviation range for EGBN extends from approximately $21.89 on the downside to $26.91 on the upside. A EGBN collar hedges an existing long EGBN 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 EGBN IV rank near 8.26% 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 EGBN at 35.90%. As a Financial Services name, EGBN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EGBN-specific events.
EGBN 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. EGBN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EGBN alongside the broader basket even when EGBN-specific fundamentals are unchanged. Always rebuild the position from current EGBN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EGBN?
- A collar on EGBN is the collar strategy applied to EGBN (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 EGBN stock trading near $24.40, the strikes shown on this page are snapped to the nearest listed EGBN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EGBN 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 EGBN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.90%), 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 EGBN collar?
- The breakeven for the EGBN 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 EGBN market-implied 1-standard-deviation expected move is approximately 10.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EGBN?
- Collars on EGBN hedge an existing long EGBN 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 EGBN implied volatility affect this collar?
- EGBN ATM IV is at 35.90% with IV rank near 8.26%, 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.