GLNG Collar Strategy
GLNG (Golar LNG Limited), in the Energy sector, (Oil & Gas Midstream industry), listed on NASDAQ.
Golar LNG Limited designs, builds, owns, and operates marine infrastructure for the liquefaction and regasification of LNG. It operates through Shipping and FLNG segments. The company engages in the operation and chartering of LNG carriers, Floating Liquefaction Natural Gas Vessel (FLNG), and floating storage regasification units (FSRUs), as well as operates external vessels. As of December 31, 2021, it operated nine LNG carriers, one FSRU, and three FLNGs. The company was founded in 1946 and is headquartered in Hamilton, Bermuda.
GLNG (Golar LNG Limited) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $5.77B, a trailing P/E of 87.47, a beta of 0.05 versus the broader market, a 52-week range of 35.02-57.79, average daily share volume of 2.1M, a public-listing history dating back to 2003, approximately 474 full-time employees. These structural characteristics shape how GLNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.05 indicates GLNG 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 87.47 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. GLNG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GLNG?
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 GLNG snapshot
As of May 15, 2026, spot at $57.24, ATM IV 38.70%, IV rank 23.19%, expected move 11.09%. The collar on GLNG 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 GLNG specifically: IV regime affects collar pricing on both sides; compressed GLNG IV at 38.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.09% (roughly $6.35 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 GLNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on GLNG should anchor to the underlying notional of $57.24 per share and to the trader's directional view on GLNG stock.
GLNG collar setup
The GLNG 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 GLNG near $57.24, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GLNG 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 GLNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $57.24 | long |
| Sell 1 | Call | $60.00 | $1.58 |
| Buy 1 | Put | $55.00 | $1.68 |
GLNG collar risk and reward
- Net Premium / Debit
- -$5,734.00
- Max Profit (per contract)
- $266.00
- Max Loss (per contract)
- -$234.00
- Breakeven(s)
- $57.34
- Risk / Reward Ratio
- 1.137
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.
GLNG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GLNG. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$234.00 |
| $12.66 | -77.9% | -$234.00 |
| $25.32 | -55.8% | -$234.00 |
| $37.97 | -33.7% | -$234.00 |
| $50.63 | -11.5% | -$234.00 |
| $63.28 | +10.6% | +$266.00 |
| $75.94 | +32.7% | +$266.00 |
| $88.59 | +54.8% | +$266.00 |
| $101.25 | +76.9% | +$266.00 |
| $113.90 | +99.0% | +$266.00 |
When traders use collar on GLNG
Collars on GLNG hedge an existing long GLNG 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.
GLNG thesis for this collar
The market-implied 1-standard-deviation range for GLNG extends from approximately $50.89 on the downside to $63.59 on the upside. A GLNG collar hedges an existing long GLNG 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 GLNG IV rank near 23.19% 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 GLNG at 38.70%. As a Energy name, GLNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GLNG-specific events.
GLNG 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. GLNG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GLNG alongside the broader basket even when GLNG-specific fundamentals are unchanged. Always rebuild the position from current GLNG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GLNG?
- A collar on GLNG is the collar strategy applied to GLNG (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 GLNG stock trading near $57.24, the strikes shown on this page are snapped to the nearest listed GLNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GLNG 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 GLNG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.70%), the computed maximum profit is $266.00 per contract and the computed maximum loss is -$234.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GLNG collar?
- The breakeven for the GLNG collar priced on this page is roughly $57.34 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 GLNG market-implied 1-standard-deviation expected move is approximately 11.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GLNG?
- Collars on GLNG hedge an existing long GLNG 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 GLNG implied volatility affect this collar?
- GLNG ATM IV is at 38.70% with IV rank near 23.19%, 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.