FUN Collar Strategy
FUN (Six Flags Entertainment Corporation), in the Consumer Cyclical sector, (Leisure industry), listed on NYSE.
Six Flags Entertainment Corporation operates amusement-resort in North America. Its amusement-resort consists of amusement parks, water parks, and resort properties across 17 states in the U.S., Canada, and Mexico. The company provides fun, experiences to various guests with coasters, themed rides, water parks, resorts, and a portfolio of intellectual property, such as Looney Tunes, DC Comics, and PEANUTS. Six Flags Entertainment Corporation was founded in 1983 and is based in Charlotte, North Carolina.
FUN (Six Flags Entertainment Corporation) trades in the Consumer Cyclical sector, specifically Leisure, with a market capitalization of approximately $1.97B, a beta of 0.34 versus the broader market, a 52-week range of 12.51-38.27, average daily share volume of 1.9M, a public-listing history dating back to 1987, approximately 5K full-time employees. These structural characteristics shape how FUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.34 indicates FUN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FUN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FUN?
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 FUN snapshot
As of May 14, 2026, spot at $20.16, ATM IV 68.10%, IV rank 46.48%, expected move 19.52%. The collar on FUN 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 35-day expiry.
Why this collar structure on FUN specifically: IV regime affects collar pricing on both sides; mid-range FUN IV at 68.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.52% (roughly $3.94 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 FUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FUN should anchor to the underlying notional of $20.16 per share and to the trader's directional view on FUN stock.
FUN collar setup
The FUN 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 FUN near $20.16, the first option leg uses a $21.17 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FUN 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 FUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $20.16 | long |
| Sell 1 | Call | $21.17 | N/A |
| Buy 1 | Put | $19.15 | N/A |
FUN 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.
FUN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FUN. 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 FUN
Collars on FUN hedge an existing long FUN 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.
FUN thesis for this collar
The market-implied 1-standard-deviation range for FUN extends from approximately $16.22 on the downside to $24.10 on the upside. A FUN collar hedges an existing long FUN 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 FUN IV rank near 46.48% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FUN should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, FUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FUN-specific events.
FUN 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. FUN positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FUN alongside the broader basket even when FUN-specific fundamentals are unchanged. Always rebuild the position from current FUN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FUN?
- A collar on FUN is the collar strategy applied to FUN (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 FUN stock trading near $20.16, the strikes shown on this page are snapped to the nearest listed FUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FUN 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 FUN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 68.10%), 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 FUN collar?
- The breakeven for the FUN 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 FUN market-implied 1-standard-deviation expected move is approximately 19.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FUN?
- Collars on FUN hedge an existing long FUN 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 FUN implied volatility affect this collar?
- FUN ATM IV is at 68.10% with IV rank near 46.48%, 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.