FMBH Collar Strategy
FMBH (First Mid Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Mid Bancshares, Inc., a financial holding company, provides community banking products and services to commercial, retail, and agricultural customers in the United States. It accepts various deposit products, such as demand deposits, savings accounts, money market deposits, and time deposits. The company's loan products include commercial real estate, commercial and industrial, agricultural and agricultural real estate, residential real estate, and consumer loans; and other loans comprising loans to municipalities to support community projects, such as infrastructure improvements or equipment purchases. It also offers wealth management services, which include estate planning, investment, and farm management and brokerage services for individuals; and employee benefit services for business enterprises. In addition, the company provides property and casualty, senior insurance products, and group medical insurance for businesses; and personal lines insurance to individuals. It operates through a network of 52 banking centers in Illinois and 14 offices in Missouri, as well as a loan production office in Indiana.
FMBH (First Mid Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.12B, a trailing P/E of 10.90, a beta of 0.79 versus the broader market, a 52-week range of 33.67-44.85, average daily share volume of 113K, a public-listing history dating back to 1999, approximately 1K full-time employees. These structural characteristics shape how FMBH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places FMBH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.90 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FMBH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FMBH?
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 FMBH snapshot
As of May 15, 2026, spot at $41.87, ATM IV 153.10%, IV rank 57.87%, expected move 43.89%. The collar on FMBH 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 FMBH specifically: IV regime affects collar pricing on both sides; mid-range FMBH IV at 153.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 43.89% (roughly $18.38 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 FMBH expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMBH should anchor to the underlying notional of $41.87 per share and to the trader's directional view on FMBH stock.
FMBH collar setup
The FMBH 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 FMBH near $41.87, the first option leg uses a $43.96 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMBH 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 FMBH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $41.87 | long |
| Sell 1 | Call | $43.96 | N/A |
| Buy 1 | Put | $39.78 | N/A |
FMBH 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.
FMBH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FMBH. 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 FMBH
Collars on FMBH hedge an existing long FMBH 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.
FMBH thesis for this collar
The market-implied 1-standard-deviation range for FMBH extends from approximately $23.49 on the downside to $60.25 on the upside. A FMBH collar hedges an existing long FMBH 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 FMBH IV rank near 57.87% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FMBH should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FMBH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMBH-specific events.
FMBH 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. FMBH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMBH alongside the broader basket even when FMBH-specific fundamentals are unchanged. Always rebuild the position from current FMBH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FMBH?
- A collar on FMBH is the collar strategy applied to FMBH (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 FMBH stock trading near $41.87, the strikes shown on this page are snapped to the nearest listed FMBH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMBH 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 FMBH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 153.10%), 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 FMBH collar?
- The breakeven for the FMBH 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 FMBH market-implied 1-standard-deviation expected move is approximately 43.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FMBH?
- Collars on FMBH hedge an existing long FMBH 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 FMBH implied volatility affect this collar?
- FMBH ATM IV is at 153.10% with IV rank near 57.87%, 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.