GPRE Collar Strategy
GPRE (Green Plains Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.
Green Plains Inc. produces, markets, and distributes ethanol in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces and sells ethanol, including industrial-grade alcohol, distiller grains, and ultra-high protein and corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling, and storage activities; and commodity marketing business, which purchases, markets, sells, and distributes ethanol, distiller grains, and ultra-high protein and corn oil, as well as grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services.
GPRE (Green Plains Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $1.18B, a beta of 1.24 versus the broader market, a 52-week range of 3.97-18.94, average daily share volume of 1.6M, a public-listing history dating back to 2006, approximately 923 full-time employees. These structural characteristics shape how GPRE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places GPRE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on GPRE?
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 GPRE snapshot
As of May 15, 2026, spot at $16.96, ATM IV 64.60%, IV rank 11.43%, expected move 18.52%. The collar on GPRE 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 GPRE specifically: IV regime affects collar pricing on both sides; compressed GPRE IV at 64.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.52% (roughly $3.14 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 GPRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GPRE should anchor to the underlying notional of $16.96 per share and to the trader's directional view on GPRE stock.
GPRE collar setup
The GPRE 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 GPRE near $16.96, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GPRE 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 GPRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.96 | long |
| Sell 1 | Call | $18.00 | $0.90 |
| Buy 1 | Put | $16.00 | $0.88 |
GPRE collar risk and reward
- Net Premium / Debit
- -$1,693.50
- Max Profit (per contract)
- $106.50
- Max Loss (per contract)
- -$93.50
- Breakeven(s)
- $16.94
- Risk / Reward Ratio
- 1.139
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.
GPRE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GPRE. 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 | -99.9% | -$93.50 |
| $3.76 | -77.8% | -$93.50 |
| $7.51 | -55.7% | -$93.50 |
| $11.26 | -33.6% | -$93.50 |
| $15.01 | -11.5% | -$93.50 |
| $18.75 | +10.6% | +$106.50 |
| $22.50 | +32.7% | +$106.50 |
| $26.25 | +54.8% | +$106.50 |
| $30.00 | +76.9% | +$106.50 |
| $33.75 | +99.0% | +$106.50 |
When traders use collar on GPRE
Collars on GPRE hedge an existing long GPRE 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.
GPRE thesis for this collar
The market-implied 1-standard-deviation range for GPRE extends from approximately $13.82 on the downside to $20.10 on the upside. A GPRE collar hedges an existing long GPRE 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 GPRE IV rank near 11.43% 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 GPRE at 64.60%. As a Basic Materials name, GPRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GPRE-specific events.
GPRE 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. GPRE positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GPRE alongside the broader basket even when GPRE-specific fundamentals are unchanged. Always rebuild the position from current GPRE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GPRE?
- A collar on GPRE is the collar strategy applied to GPRE (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 GPRE stock trading near $16.96, the strikes shown on this page are snapped to the nearest listed GPRE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GPRE 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 GPRE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 64.60%), the computed maximum profit is $106.50 per contract and the computed maximum loss is -$93.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GPRE collar?
- The breakeven for the GPRE collar priced on this page is roughly $16.94 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 GPRE market-implied 1-standard-deviation expected move is approximately 18.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GPRE?
- Collars on GPRE hedge an existing long GPRE 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 GPRE implied volatility affect this collar?
- GPRE ATM IV is at 64.60% with IV rank near 11.43%, 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.