GASS Collar Strategy
GASS (StealthGas Inc.), in the Industrials sector, (Marine Shipping industry), listed on NASDAQ.
StealthGas Inc., together with its subsidiaries, provides seaborne transportation services to liquefied petroleum gas (LPG) producers and users internationally. It also provides crude oil and natural gas. The company's carriers carry various petroleum gas products in liquefied form, including propane, butane, butadiene, isopropane, propylene, and vinyl chloride monomer; and refined petroleum products, such as gasoline, diesel, fuel oil, and jet fuel, as well as edible oils and chemicals. As of December 31, 2021, it had a fleet of 44 LPG carriers with a total capacity of 389,426 cubic meters; three medium range product carriers with a total capacity of 140,000 deadweight tons (dwt); and one Aframax crude oil tanker with a total capacity of 115,804 dwt. StealthGas Inc. was incorporated in 2004 and is based in Athens, Greece.
GASS (StealthGas Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $375.2M, a trailing P/E of 6.01, a beta of 0.25 versus the broader market, a 52-week range of 5.22-10.52, average daily share volume of 168K, a public-listing history dating back to 2005, approximately 602 full-time employees. These structural characteristics shape how GASS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.25 indicates GASS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 6.01 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on GASS?
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 GASS snapshot
As of May 15, 2026, spot at $10.09, ATM IV 49.60%, IV rank 7.93%, expected move 14.22%. The collar on GASS 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 GASS specifically: IV regime affects collar pricing on both sides; compressed GASS IV at 49.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.22% (roughly $1.43 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 GASS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GASS should anchor to the underlying notional of $10.09 per share and to the trader's directional view on GASS stock.
GASS collar setup
The GASS 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 GASS near $10.09, the first option leg uses a $10.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GASS 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 GASS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.09 | long |
| Sell 1 | Call | $10.59 | N/A |
| Buy 1 | Put | $9.59 | N/A |
GASS 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.
GASS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GASS. 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 GASS
Collars on GASS hedge an existing long GASS 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.
GASS thesis for this collar
The market-implied 1-standard-deviation range for GASS extends from approximately $8.66 on the downside to $11.52 on the upside. A GASS collar hedges an existing long GASS 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 GASS IV rank near 7.93% 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 GASS at 49.60%. As a Industrials name, GASS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GASS-specific events.
GASS 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. GASS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GASS alongside the broader basket even when GASS-specific fundamentals are unchanged. Always rebuild the position from current GASS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GASS?
- A collar on GASS is the collar strategy applied to GASS (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 GASS stock trading near $10.09, the strikes shown on this page are snapped to the nearest listed GASS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GASS 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 GASS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.60%), 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 GASS collar?
- The breakeven for the GASS 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 GASS market-implied 1-standard-deviation expected move is approximately 14.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GASS?
- Collars on GASS hedge an existing long GASS 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 GASS implied volatility affect this collar?
- GASS ATM IV is at 49.60% with IV rank near 7.93%, 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.