EPRT Collar Strategy
EPRT (Essential Properties Realty Trust, Inc.), in the Real Estate sector, (REIT - Diversified industry), listed on NYSE.
Essential Properties Realty Trust, Inc., a real estate company, acquires, owns, and manages single-tenant properties in the United States. The company leases its properties to middle-market companies, such as restaurants, car washes, automotive services, medical and dental services, convenience stores, equipment rental, entertainment, early childhood education, grocery, and health and fitness on a long-term basis. As of December 31, 2021, it had a portfolio of 1, 451 properties. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. The company was founded in 2016 and is headquartered in Princeton, New Jersey.
EPRT (Essential Properties Realty Trust, Inc.) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $6.63B, a trailing P/E of 25.12, a beta of 0.93 versus the broader market, a 52-week range of 28.95-34.73, average daily share volume of 2.3M, a public-listing history dating back to 2018, approximately 48 full-time employees. These structural characteristics shape how EPRT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.93 places EPRT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EPRT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EPRT?
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 EPRT snapshot
As of May 15, 2026, spot at $30.24, ATM IV 28.30%, IV rank 6.18%, expected move 8.11%. The collar on EPRT 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 EPRT specifically: IV regime affects collar pricing on both sides; compressed EPRT IV at 28.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.11% (roughly $2.45 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 EPRT expiries trade a higher absolute premium for lower per-day decay. Position sizing on EPRT should anchor to the underlying notional of $30.24 per share and to the trader's directional view on EPRT stock.
EPRT collar setup
The EPRT 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 EPRT near $30.24, the first option leg uses a $31.75 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EPRT 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 EPRT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.24 | long |
| Sell 1 | Call | $31.75 | N/A |
| Buy 1 | Put | $28.73 | N/A |
EPRT 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.
EPRT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EPRT. 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 EPRT
Collars on EPRT hedge an existing long EPRT 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.
EPRT thesis for this collar
The market-implied 1-standard-deviation range for EPRT extends from approximately $27.79 on the downside to $32.69 on the upside. A EPRT collar hedges an existing long EPRT 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 EPRT IV rank near 6.18% 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 EPRT at 28.30%. As a Real Estate name, EPRT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EPRT-specific events.
EPRT 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. EPRT positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EPRT alongside the broader basket even when EPRT-specific fundamentals are unchanged. Always rebuild the position from current EPRT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EPRT?
- A collar on EPRT is the collar strategy applied to EPRT (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 EPRT stock trading near $30.24, the strikes shown on this page are snapped to the nearest listed EPRT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EPRT 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 EPRT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.30%), 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 EPRT collar?
- The breakeven for the EPRT 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 EPRT market-implied 1-standard-deviation expected move is approximately 8.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EPRT?
- Collars on EPRT hedge an existing long EPRT 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 EPRT implied volatility affect this collar?
- EPRT ATM IV is at 28.30% with IV rank near 6.18%, 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.