GOOD Collar Strategy
GOOD (Gladstone Commercial Corporation), in the Real Estate sector, (REIT - Diversified industry), listed on NASDAQ.
Gladstone Commercial Corporation functions as a real estate investment trust (REIT), primarily focused on acquiring, holding, and managing industrial and office properties under net leases across the United States. The company demonstrates a strong history of investor payouts, having delivered 189 continuous monthly cash dividends to its common stockholders up to September 2020. This followed an initial period where five consecutive quarterly cash distributions were made. Additionally, preferred stockholders have experienced uninterrupted payments: 53 consecutive monthly distributions for its Series D Preferred Stock, 12 for its Series E, and 3 for its Series F. Since its inception in 2003, Gladstone Commercial has consistently met its distribution commitments, never missing, decreasing, or delaying a payment.
GOOD (Gladstone Commercial Corporation) trades in the Real Estate sector, specifically REIT - Diversified, with a market capitalization of approximately $604.6M, a trailing P/E of 27.91, a beta of 1.07 versus the broader market, a 52-week range of 10.33-14.65, average daily share volume of 482K, a public-listing history dating back to 2003, approximately 69 full-time employees. These structural characteristics shape how GOOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places GOOD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GOOD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GOOD?
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 GOOD snapshot
As of June 30, 2026, spot at $12.32, ATM IV 16.60%, IV rank 3.20%, expected move 4.76%. The collar on GOOD 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 17-day expiry.
Why this collar structure on GOOD specifically: IV regime affects collar pricing on both sides; compressed GOOD IV at 16.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.76% (roughly $0.59 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GOOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on GOOD should anchor to the underlying notional of $12.32 per share and to the trader's directional view on GOOD stock.
GOOD collar setup
The GOOD 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 GOOD near $12.32, the first option leg uses a $12.94 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GOOD chain at a 17-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 GOOD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.32 | long |
| Sell 1 | Call | $12.94 | N/A |
| Buy 1 | Put | $11.70 | N/A |
GOOD 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.
GOOD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GOOD. 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 GOOD
Collars on GOOD hedge an existing long GOOD 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.
GOOD thesis for this collar
The market-implied 1-standard-deviation range for GOOD extends from approximately $11.73 on the downside to $12.91 on the upside. A GOOD collar hedges an existing long GOOD 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 GOOD IV rank near 3.20% 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 GOOD at 16.60%. As a Real Estate name, GOOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GOOD-specific events.
GOOD 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. GOOD positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GOOD alongside the broader basket even when GOOD-specific fundamentals are unchanged. Always rebuild the position from current GOOD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GOOD?
- A collar on GOOD is the collar strategy applied to GOOD (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 GOOD stock trading near $12.32, the strikes shown on this page are snapped to the nearest listed GOOD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GOOD 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 GOOD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 16.60%), 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 GOOD collar?
- The breakeven for the GOOD 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 GOOD market-implied 1-standard-deviation expected move is approximately 4.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GOOD?
- Collars on GOOD hedge an existing long GOOD 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 GOOD implied volatility affect this collar?
- GOOD ATM IV is at 16.60% with IV rank near 3.20%, 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.