GIC Collar Strategy
GIC (Global Industrial Company), in the Industrials sector, (Industrial - Distribution industry), listed on NYSE.
Global Industrial Company, through its subsidiaries, operates as a value-added industrial distributor of industrial and maintenance, repair, and operation (MRO) products in North America. The company offers industrial and MRO products under Global, GlobalIndustrial.com, Nexel, Paramount, and Interion trademarks. It offers products, including storage and shelving, safety and security, carts and trucks, HVAC and fans, furniture and decor, material handling, janitorial and facility maintenance, workbenches and shop desks, tools and instruments, plumbing and pumps, office and school supplies, packaging and shipping, lighting and electrical, food service and retail, medical and laboratory, motors and power transmission, building supplies, machining, fasteners and hardware, vehicle maintenance, and raw materials. The company offers its products to businesses; state, local, and private educational organizations; and government entities through relationship marketers, e-commerce sites, and catalogs. The company was formerly known as Systemax Inc. Global Industrial Company was founded in 1949 and is headquartered in Port Washington, New York.
GIC (Global Industrial Company) trades in the Industrials sector, specifically Industrial - Distribution, with a market capitalization of approximately $1.09B, a trailing P/E of 14.54, a beta of 0.83 versus the broader market, a 52-week range of 25.62-38.79, average daily share volume of 100K, a public-listing history dating back to 1995, approximately 2K full-time employees. These structural characteristics shape how GIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places GIC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GIC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GIC?
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 GIC snapshot
As of May 15, 2026, spot at $28.89, ATM IV 53.50%, IV rank 24.64%, expected move 15.34%. The collar on GIC 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 GIC specifically: IV regime affects collar pricing on both sides; compressed GIC IV at 53.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.34% (roughly $4.43 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 GIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on GIC should anchor to the underlying notional of $28.89 per share and to the trader's directional view on GIC stock.
GIC collar setup
The GIC 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 GIC near $28.89, the first option leg uses a $30.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GIC 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 GIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.89 | long |
| Sell 1 | Call | $30.33 | N/A |
| Buy 1 | Put | $27.45 | N/A |
GIC 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.
GIC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GIC. 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 GIC
Collars on GIC hedge an existing long GIC 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.
GIC thesis for this collar
The market-implied 1-standard-deviation range for GIC extends from approximately $24.46 on the downside to $33.32 on the upside. A GIC collar hedges an existing long GIC 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 GIC IV rank near 24.64% 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 GIC at 53.50%. As a Industrials name, GIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GIC-specific events.
GIC 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. GIC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GIC alongside the broader basket even when GIC-specific fundamentals are unchanged. Always rebuild the position from current GIC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GIC?
- A collar on GIC is the collar strategy applied to GIC (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 GIC stock trading near $28.89, the strikes shown on this page are snapped to the nearest listed GIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GIC 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 GIC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.50%), 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 GIC collar?
- The breakeven for the GIC 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 GIC market-implied 1-standard-deviation expected move is approximately 15.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GIC?
- Collars on GIC hedge an existing long GIC 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 GIC implied volatility affect this collar?
- GIC ATM IV is at 53.50% with IV rank near 24.64%, 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.