FEIM Collar Strategy
FEIM (Frequency Electronics, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Frequency Electronics, Inc., together with its subsidiaries, designs, develops, manufactures, and sells precision time and frequency control products and components for microwave integrated circuit applications. It operates through two segments, FEI-NY and FEI-Zyfer. The FEI-NY segment offers precision time, frequency generation, and synchronization products and subsystems used in communication satellites, terrestrial cellular telephone, or other ground-based telecommunication stations; and other components and systems for the United States military. The FEI-Zyfer segment designs, develops, and manufactures products for precision navigation and timing primarily incorporating global positioning system technologies into radar systems, airborne SIGINT/COMINT platforms, information networks, test equipment, military command and control terminals, and satellite ground stations. The company's products are used in commercial, government satellites, secure communications, command, control, communication, computer, intelligence, security and reconnaissance, and electronic warfare applications for the United States government on land, sea, and air-borne platforms. It markets its products directly and through independent sales representative organizations located in the United States, Europe, and Asia.
FEIM (Frequency Electronics, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $601.4M, a trailing P/E of 82.85, a beta of 0.46 versus the broader market, a 52-week range of 17.51-64.99, average daily share volume of 186K, a public-listing history dating back to 1980, approximately 200 full-time employees. These structural characteristics shape how FEIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.46 indicates FEIM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 82.85 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. FEIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FEIM?
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 FEIM snapshot
As of May 15, 2026, spot at $57.89, ATM IV 84.50%, expected move 24.23%. The collar on FEIM 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 FEIM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for FEIM is inferred from ATM IV at 84.50% alone, with a market-implied 1-standard-deviation move of approximately 24.23% (roughly $14.02 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 FEIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on FEIM should anchor to the underlying notional of $57.89 per share and to the trader's directional view on FEIM stock.
FEIM collar setup
The FEIM 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 FEIM near $57.89, the first option leg uses a $60.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FEIM 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 FEIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $57.89 | long |
| Sell 1 | Call | $60.78 | N/A |
| Buy 1 | Put | $55.00 | N/A |
FEIM 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.
FEIM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FEIM. 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 FEIM
Collars on FEIM hedge an existing long FEIM 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.
FEIM thesis for this collar
The market-implied 1-standard-deviation range for FEIM extends from approximately $43.87 on the downside to $71.91 on the upside. A FEIM collar hedges an existing long FEIM 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. As a Technology name, FEIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FEIM-specific events.
FEIM 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. FEIM positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FEIM alongside the broader basket even when FEIM-specific fundamentals are unchanged. Always rebuild the position from current FEIM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FEIM?
- A collar on FEIM is the collar strategy applied to FEIM (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 FEIM stock trading near $57.89, the strikes shown on this page are snapped to the nearest listed FEIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FEIM 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 FEIM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 84.50%), 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 FEIM collar?
- The breakeven for the FEIM 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 FEIM market-implied 1-standard-deviation expected move is approximately 24.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FEIM?
- Collars on FEIM hedge an existing long FEIM 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 FEIM implied volatility affect this collar?
- Current FEIM ATM IV is 84.50%; IV rank context is unavailable in the current snapshot.