FLNG Collar Strategy
FLNG (FLEX LNG Ltd), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
Flex LNG Ltd. is a shipping company focused on the transportation of liquefied natural gas (LNG). Its fleet is comprised of thirteen modern LNG carriers featuring state-of-the-art, two-stroke propulsion systems (MEGI and X-DF). These vessels offer significant improvements in fuel efficiency and a reduced carbon footprint compared to older ship designs.
FLNG (FLEX LNG Ltd) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $1.67B, a trailing P/E of 16.26, a beta of 0.16 versus the broader market, a 52-week range of 24-33.4, average daily share volume of 403K, a public-listing history dating back to 2019, approximately 9 full-time employees. These structural characteristics shape how FLNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.16 indicates FLNG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FLNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FLNG?
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.
FLNG snapshot
As of September 29, 2026, spot at $30.70, ATM IV 28.90%, IV rank 39.35%, expected move 8.29%. The collar on FLNG below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.
Why this collar structure on FLNG specifically: IV regime affects collar pricing on both sides; mid-range FLNG IV at 28.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.29% (roughly $2.54 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FLNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLNG should anchor to the underlying notional of $30.70 per share and to the trader's directional view on FLNG stock.
FLNG collar setup
The FLNG collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FLNG at $30.70 on that close, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLNG chain at a 52-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 FLNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.70 | long |
| Sell 1 | Call | $32.00 | $0.90 |
| Buy 1 | Put | $29.00 | $0.55 |
FLNG collar risk and reward
- Net Premium / Debit
- -$3,035.00
- Max Profit (per contract)
- $165.00
- Max Loss (per contract)
- -$135.00
- Breakeven(s)
- $30.35
- Risk / Reward Ratio
- 1.222
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.
FLNG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FLNG. 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% | -$135.00 |
| $6.80 | -77.9% | -$135.00 |
| $13.58 | -55.8% | -$135.00 |
| $20.37 | -33.6% | -$135.00 |
| $27.16 | -11.5% | -$135.00 |
| $33.94 | +10.6% | +$165.00 |
| $40.73 | +32.7% | +$165.00 |
| $47.52 | +54.8% | +$165.00 |
| $54.30 | +76.9% | +$165.00 |
| $61.09 | +99.0% | +$165.00 |
When traders use collar on FLNG
Collars on FLNG hedge an existing long FLNG 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.
FLNG thesis for this collar
The market-implied 1-standard-deviation range for FLNG extends from approximately $28.16 on the downside to $33.24 on the upside. A FLNG collar hedges an existing long FLNG 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 FLNG IV rank near 39.35% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FLNG should anchor more to the directional view and the expected-move geometry. As a Industrials name, FLNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLNG-specific events.
FLNG 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. FLNG positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLNG alongside the broader basket even when FLNG-specific fundamentals are unchanged. Always rebuild the position from current FLNG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FLNG?
- A collar on FLNG is the collar strategy applied to FLNG (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 FLNG stock at $30.70 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed FLNG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FLNG 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 FLNG collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.90%), the computed maximum profit is $165.00 per contract and the computed maximum loss is -$135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLNG collar?
- The breakeven for the FLNG collar priced on this page is roughly $30.35 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FLNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FLNG?
- Collars on FLNG hedge an existing long FLNG 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 FLNG implied volatility affect this collar?
- FLNG ATM IV is at 28.90% with IV rank near 39.35%, 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.