FRST Collar Strategy
FRST (Primis Financial Corp), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Primis Financial Corp. operates as the bank holding company for Primis Bank that provides various financial services to individuals, and small and medium sized businesses in the United States. The company offers deposit products, including checking, NOW, savings, and money market accounts, as well as certificates of deposits; and commercial deposit products comprising investment/sweep accounts, wire transfer services, employer services/payroll processing services, zero balance accounts, night depository services, depository transfers, merchant services, ACH originations, business debit cards, controlled disbursement accounts, and remote deposit capture services. It also provides commercial lending products, such as loans consist of lines of credit, revolving credit facilities, demand loans, term loans, equipment loans, SBA loans, stand-by letters of credit, and unsecured loans; loans for permanent financing; construction loans for commercial, multi-family, assisted living and other non-residential properties, and builder/developer lines; second asset based lending; SBA lending; financing for medical, dental, and veterinary businesses; and warehouse lending lines of credit to residential mortgage originators. In addition, the company provides consumer lending products comprising residential mortgage, home equity lines of credit, secured and unsecured personal loans, life insurance premium financing, and Panacea consumer loans. Further, it offers debit cards, ATM services, notary services, and mobile and online banking. The company was formerly known as Southern National Bancorp of Virginia, Inc. and changed its name to Primis Financial Corp.
FRST (Primis Financial Corp) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $412.7M, a trailing P/E of 7.70, a beta of 0.72 versus the broader market, a 52-week range of 9.55-16.77, average daily share volume of 241K, a public-listing history dating back to 2006, approximately 593 full-time employees. These structural characteristics shape how FRST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places FRST roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.70 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FRST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FRST?
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.
FRST snapshot
As of August 14, 2026, spot at $16.62, ATM IV 58.40%, IV rank 8.79%, expected move 16.74%. The collar on FRST below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on FRST specifically: IV regime affects collar pricing on both sides; compressed FRST IV at 58.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.74% (roughly $2.78 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FRST expiries trade a higher absolute premium for lower per-day decay. Position sizing on FRST should anchor to the underlying notional of $16.62 per share and to the trader's directional view on FRST stock.
FRST collar setup
The FRST 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 FRST at $16.62 on that close, the first option leg uses a $17.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FRST chain at a 35-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 FRST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.62 | long |
| Sell 1 | Call | $17.45 | N/A |
| Buy 1 | Put | $15.79 | N/A |
FRST 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.
FRST collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FRST. 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 FRST
Collars on FRST hedge an existing long FRST 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.
FRST thesis for this collar
The market-implied 1-standard-deviation range for FRST extends from approximately $13.84 on the downside to $19.40 on the upside. A FRST collar hedges an existing long FRST 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 FRST IV rank near 8.79% 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 FRST at 58.40%. As a Financial Services name, FRST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FRST-specific events.
FRST 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. FRST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FRST alongside the broader basket even when FRST-specific fundamentals are unchanged. Always rebuild the position from current FRST chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FRST?
- A collar on FRST is the collar strategy applied to FRST (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 FRST stock at $16.62 on the most recent close, the strikes shown on this page are snapped to the nearest listed FRST chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FRST 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 FRST collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.40%), 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 FRST collar?
- The breakeven for the FRST collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 FRST market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.74%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FRST?
- Collars on FRST hedge an existing long FRST 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 FRST implied volatility affect this collar?
- FRST ATM IV is at 58.40% with IV rank near 8.79%, 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.