EXR Collar Strategy
EXR (Extra Space Storage Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
Extra Space Storage Inc., headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of September 30, 2020, the Company owned and/or operated 1,906 self-storage stores in 40 states, Washington, D.C. and Puerto Rico. The Company's stores comprise approximately 1.4 million units and approximately 147.5 million square feet of rentable space. The Company offers customers a wide selection of conveniently located and secure storage units across the country, including boat storage, RV storage and business storage. The Company is the second largest owner and/or operator of self-storage stores in the United States and is the largest self-storage management company in the United States.
EXR (Extra Space Storage Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $30.09B, a trailing P/E of 31.81, a beta of 1.23 versus the broader market, a 52-week range of 125.71-155.19, average daily share volume of 1.2M, a public-listing history dating back to 2004, approximately 8K full-time employees. These structural characteristics shape how EXR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places EXR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EXR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EXR?
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 EXR snapshot
As of May 15, 2026, spot at $137.01, ATM IV 26.20%, IV rank 44.60%, expected move 7.51%. The collar on EXR 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 EXR specifically: IV regime affects collar pricing on both sides; mid-range EXR IV at 26.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.51% (roughly $10.29 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 EXR expiries trade a higher absolute premium for lower per-day decay. Position sizing on EXR should anchor to the underlying notional of $137.01 per share and to the trader's directional view on EXR stock.
EXR collar setup
The EXR 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 EXR near $137.01, the first option leg uses a $145.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EXR 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 EXR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $137.01 | long |
| Sell 1 | Call | $145.00 | $1.18 |
| Buy 1 | Put | $130.00 | $1.83 |
EXR collar risk and reward
- Net Premium / Debit
- -$13,766.00
- Max Profit (per contract)
- $734.00
- Max Loss (per contract)
- -$766.00
- Breakeven(s)
- $137.66
- Risk / Reward Ratio
- 0.958
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.
EXR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EXR. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$766.00 |
| $30.30 | -77.9% | -$766.00 |
| $60.60 | -55.8% | -$766.00 |
| $90.89 | -33.7% | -$766.00 |
| $121.18 | -11.6% | -$766.00 |
| $151.47 | +10.6% | +$734.00 |
| $181.77 | +32.7% | +$734.00 |
| $212.06 | +54.8% | +$734.00 |
| $242.35 | +76.9% | +$734.00 |
| $272.64 | +99.0% | +$734.00 |
When traders use collar on EXR
Collars on EXR hedge an existing long EXR 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.
EXR thesis for this collar
The market-implied 1-standard-deviation range for EXR extends from approximately $126.72 on the downside to $147.30 on the upside. A EXR collar hedges an existing long EXR 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 EXR IV rank near 44.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on EXR should anchor more to the directional view and the expected-move geometry. As a Real Estate name, EXR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EXR-specific events.
EXR 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. EXR positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EXR alongside the broader basket even when EXR-specific fundamentals are unchanged. Always rebuild the position from current EXR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EXR?
- A collar on EXR is the collar strategy applied to EXR (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 EXR stock trading near $137.01, the strikes shown on this page are snapped to the nearest listed EXR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EXR 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 EXR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.20%), the computed maximum profit is $734.00 per contract and the computed maximum loss is -$766.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EXR collar?
- The breakeven for the EXR collar priced on this page is roughly $137.66 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 EXR market-implied 1-standard-deviation expected move is approximately 7.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EXR?
- Collars on EXR hedge an existing long EXR 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 EXR implied volatility affect this collar?
- EXR ATM IV is at 26.20% with IV rank near 44.60%, 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.