GNE Collar Strategy
GNE (Genie Energy Ltd.), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
Genie Energy Ltd., through its subsidiaries, supplies electricity and natural gas to residential and small business customers in the United States, Finland, Sweden, Japan, and internationally. It operates in three segments: Genie Retail Energy (GRE); GRE International; and Genie Renewables. The company also engages in the provision of energy advisory and brokerage services; solar panel manufacturing and distribution; solar installation design; and project management activities. Genie Energy Ltd. was incorporated in 2011 and is headquartered in Newark, New Jersey.
GNE (Genie Energy Ltd.) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $368.6M, a trailing P/E of 14.58, a beta of 0.20 versus the broader market, a 52-week range of 13.19-28.47, average daily share volume of 56K, a public-listing history dating back to 2011, approximately 152 full-time employees. These structural characteristics shape how GNE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.20 indicates GNE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GNE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GNE?
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 GNE snapshot
As of May 15, 2026, spot at $13.46, ATM IV 63.40%, IV rank 12.37%, expected move 18.18%. The collar on GNE 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 GNE specifically: IV regime affects collar pricing on both sides; compressed GNE IV at 63.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.18% (roughly $2.45 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 GNE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GNE should anchor to the underlying notional of $13.46 per share and to the trader's directional view on GNE stock.
GNE collar setup
The GNE 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 GNE near $13.46, the first option leg uses a $14.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GNE 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 GNE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.46 | long |
| Sell 1 | Call | $14.13 | N/A |
| Buy 1 | Put | $12.79 | N/A |
GNE 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.
GNE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GNE. 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 GNE
Collars on GNE hedge an existing long GNE 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.
GNE thesis for this collar
The market-implied 1-standard-deviation range for GNE extends from approximately $11.01 on the downside to $15.91 on the upside. A GNE collar hedges an existing long GNE 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 GNE IV rank near 12.37% 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 GNE at 63.40%. As a Utilities name, GNE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GNE-specific events.
GNE 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. GNE positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GNE alongside the broader basket even when GNE-specific fundamentals are unchanged. Always rebuild the position from current GNE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GNE?
- A collar on GNE is the collar strategy applied to GNE (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 GNE stock trading near $13.46, the strikes shown on this page are snapped to the nearest listed GNE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GNE 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 GNE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 63.40%), 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 GNE collar?
- The breakeven for the GNE 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 GNE market-implied 1-standard-deviation expected move is approximately 18.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GNE?
- Collars on GNE hedge an existing long GNE 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 GNE implied volatility affect this collar?
- GNE ATM IV is at 63.40% with IV rank near 12.37%, 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.