FIVN Collar Strategy
FIVN (Five9, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a suite of applications, which enables the breadth of contact center-related customer service, sales, and marketing functions. Its solution enables its clients to manage these customer interactions across various channels, including voice, video, chat, email, website, social media, click-to-call, callback, and mobile channels, as well as through APIs; and provides natural language processing and automatic speech recognition solutions. The company serves customers in various industries comprising banking and financial services, business process outsourcers, consumer, healthcare, technology, and education. Five9, Inc. was incorporated in 2001 and is headquartered in San Ramon, California.
FIVN (Five9, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $1.62B, a trailing P/E of 28.34, a beta of 1.33 versus the broader market, a 52-week range of 13.29-30.38, average daily share volume of 2.9M, a public-listing history dating back to 2014, approximately 3K full-time employees. These structural characteristics shape how FIVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates FIVN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on FIVN?
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 FIVN snapshot
As of May 15, 2026, spot at $21.65, ATM IV 71.20%, IV rank 46.42%, expected move 20.41%. The collar on FIVN 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 63-day expiry.
Why this collar structure on FIVN specifically: IV regime affects collar pricing on both sides; mid-range FIVN IV at 71.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.41% (roughly $4.42 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FIVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FIVN should anchor to the underlying notional of $21.65 per share and to the trader's directional view on FIVN stock.
FIVN collar setup
The FIVN 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 FIVN near $21.65, the first option leg uses a $22.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FIVN chain at a 63-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 FIVN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.65 | long |
| Sell 1 | Call | $22.50 | $2.43 |
| Buy 1 | Put | $20.00 | $1.58 |
FIVN collar risk and reward
- Net Premium / Debit
- -$2,080.00
- Max Profit (per contract)
- $170.00
- Max Loss (per contract)
- -$80.00
- Breakeven(s)
- $20.80
- Risk / Reward Ratio
- 2.125
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.
FIVN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FIVN. 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% | -$80.00 |
| $4.80 | -77.8% | -$80.00 |
| $9.58 | -55.7% | -$80.00 |
| $14.37 | -33.6% | -$80.00 |
| $19.15 | -11.5% | -$80.00 |
| $23.94 | +10.6% | +$170.00 |
| $28.72 | +32.7% | +$170.00 |
| $33.51 | +54.8% | +$170.00 |
| $38.30 | +76.9% | +$170.00 |
| $43.08 | +99.0% | +$170.00 |
When traders use collar on FIVN
Collars on FIVN hedge an existing long FIVN 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.
FIVN thesis for this collar
The market-implied 1-standard-deviation range for FIVN extends from approximately $17.23 on the downside to $26.07 on the upside. A FIVN collar hedges an existing long FIVN 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 FIVN IV rank near 46.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FIVN should anchor more to the directional view and the expected-move geometry. As a Technology name, FIVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FIVN-specific events.
FIVN 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. FIVN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FIVN alongside the broader basket even when FIVN-specific fundamentals are unchanged. Always rebuild the position from current FIVN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FIVN?
- A collar on FIVN is the collar strategy applied to FIVN (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 FIVN stock trading near $21.65, the strikes shown on this page are snapped to the nearest listed FIVN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FIVN 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 FIVN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 71.20%), the computed maximum profit is $170.00 per contract and the computed maximum loss is -$80.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FIVN collar?
- The breakeven for the FIVN collar priced on this page is roughly $20.80 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 FIVN market-implied 1-standard-deviation expected move is approximately 20.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FIVN?
- Collars on FIVN hedge an existing long FIVN 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 FIVN implied volatility affect this collar?
- FIVN ATM IV is at 71.20% with IV rank near 46.42%, 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.