FMNB Collar Strategy
FMNB (Farmers National Banc Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Farmers National Banc Corp. operates as a diversified financial services holding company, engaging in banking, trust administration, retirement planning, insurance, and financial management. It provides a comprehensive range of commercial and consumer banking solutions, including various deposit products like checking, savings, and certificate of deposit accounts. The company's lending portfolio features commercial, mortgage, personal installment, and home equity loans, alongside ancillary services such as home equity lines of credit, online banking, ATM access, safe deposit boxes, money orders, official checks, travel cards, credit and debit cards, and brokerage offerings. Furthermore, it delivers both individual and institutional trust services, covering estate settlement, trust oversight, and employee benefit plan management. Specialized retirement consulting is also offered, as well as a variety of insurance products, including property and casualty coverage, facilitated by licensed representatives. The firm strategically invests in municipal securities.
FMNB (Farmers National Banc Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $579.9M, a trailing P/E of 11.57, a beta of 0.79 versus the broader market, a 52-week range of 12.12-15.5, average daily share volume of 387K, a public-listing history dating back to 1999, approximately 682 full-time employees. These structural characteristics shape how FMNB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places FMNB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.57 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FMNB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FMNB?
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 FMNB snapshot
As of June 30, 2026, spot at $14.59, ATM IV 99.70%, IV rank 26.18%, expected move 28.58%. The collar on FMNB 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 FMNB specifically: IV regime affects collar pricing on both sides; compressed FMNB IV at 99.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.58% (roughly $4.17 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 FMNB expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMNB should anchor to the underlying notional of $14.59 per share and to the trader's directional view on FMNB stock.
FMNB collar setup
The FMNB 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 FMNB near $14.59, the first option leg uses a $15.32 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMNB 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 FMNB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.59 | long |
| Sell 1 | Call | $15.32 | N/A |
| Buy 1 | Put | $13.86 | N/A |
FMNB 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.
FMNB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FMNB. 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 FMNB
Collars on FMNB hedge an existing long FMNB 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.
FMNB thesis for this collar
The market-implied 1-standard-deviation range for FMNB extends from approximately $10.42 on the downside to $18.76 on the upside. A FMNB collar hedges an existing long FMNB 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 FMNB IV rank near 26.18% 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 FMNB at 99.70%. As a Financial Services name, FMNB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMNB-specific events.
FMNB 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. FMNB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMNB alongside the broader basket even when FMNB-specific fundamentals are unchanged. Always rebuild the position from current FMNB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FMNB?
- A collar on FMNB is the collar strategy applied to FMNB (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 FMNB stock trading near $14.59, the strikes shown on this page are snapped to the nearest listed FMNB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FMNB 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 FMNB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 99.70%), 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 FMNB collar?
- The breakeven for the FMNB 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 FMNB market-implied 1-standard-deviation expected move is approximately 28.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FMNB?
- Collars on FMNB hedge an existing long FMNB 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 FMNB implied volatility affect this collar?
- FMNB ATM IV is at 99.70% with IV rank near 26.18%, 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.