EYE Collar Strategy
EYE (National Vision Holdings, Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NASDAQ.
National Vision Holdings, Inc. operates as a leading optical retail chain across the United States, conducting business through its various subsidiary companies. The company's operations are categorized into two primary divisions: Owned & Host, and Legacy. It offers a comprehensive range of vision care products, including eyeglasses, contact lenses, and optical accessories. Eye examinations and optometric services are also provided through its extensive network of branded stores, which include America's Best, Eyeglass World, Vista Optical, Fred Meyer, Vista Optical military, and Vision Center outlets, alongside health maintenance organization services. As of January 1, 2022, National Vision maintained a significant retail footprint with 1,278 physical stores and a robust online presence through multiple e-commerce platforms. Established in 1990, the company is headquartered in Duluth, Georgia.
EYE (National Vision Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $1.51B, a trailing P/E of 32.24, a beta of 1.07 versus the broader market, a 52-week range of 14.75-30.02, average daily share volume of 2.2M, a public-listing history dating back to 2017, approximately 13K full-time employees. These structural characteristics shape how EYE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places EYE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on EYE?
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 EYE snapshot
As of June 30, 2026, spot at $18.90, ATM IV 58.60%, IV rank 24.05%, expected move 16.80%. The collar on EYE 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 17-day expiry.
Why this collar structure on EYE specifically: IV regime affects collar pricing on both sides; compressed EYE IV at 58.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.80% (roughly $3.18 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EYE expiries trade a higher absolute premium for lower per-day decay. Position sizing on EYE should anchor to the underlying notional of $18.90 per share and to the trader's directional view on EYE stock.
EYE collar setup
The EYE 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 EYE near $18.90, the first option leg uses a $19.85 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EYE chain at a 17-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 EYE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $18.90 | long |
| Sell 1 | Call | $19.85 | N/A |
| Buy 1 | Put | $17.96 | N/A |
EYE 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.
EYE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EYE. 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 EYE
Collars on EYE hedge an existing long EYE 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.
EYE thesis for this collar
The market-implied 1-standard-deviation range for EYE extends from approximately $15.72 on the downside to $22.08 on the upside. A EYE collar hedges an existing long EYE 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 EYE IV rank near 24.05% 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 EYE at 58.60%. As a Consumer Cyclical name, EYE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EYE-specific events.
EYE 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. EYE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EYE alongside the broader basket even when EYE-specific fundamentals are unchanged. Always rebuild the position from current EYE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EYE?
- A collar on EYE is the collar strategy applied to EYE (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 EYE stock trading near $18.90, the strikes shown on this page are snapped to the nearest listed EYE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EYE 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 EYE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.60%), 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 EYE collar?
- The breakeven for the EYE 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 EYE market-implied 1-standard-deviation expected move is approximately 16.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EYE?
- Collars on EYE hedge an existing long EYE 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 EYE implied volatility affect this collar?
- EYE ATM IV is at 58.60% with IV rank near 24.05%, 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.