GS Collar Strategy
GS (The Goldman Sachs Group, Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NYSE.
The Goldman Sachs Group, Inc., a financial institution, provides a range of financial services for corporations, financial institutions, governments, and individuals worldwide. It operates through four segments: Investment Banking, Global Markets, Asset Management, and Consumer & Wealth Management. The company's Investment Banking segment provides financial advisory services, including strategic advisory assignments related to mergers and acquisitions, divestitures, corporate defense activities, restructurings, and spin-offs; and middle-market lending, relationship lending, and acquisition financing, as well as transaction banking services. This segment also offers underwriting services, such as equity underwriting for common and preferred stock and convertible and exchangeable securities; and debt underwriting for various types of debt instruments, including investment-grade and high-yield debt, bank and bridge loans, and emerging-and growth-market debt, as well as originates structured securities. Its Global Markets segment is involved in client execution activities for cash and derivative instruments; credit and interest rate products; and provision of equity intermediation and equity financing, clearing, settlement, and custody services, as well as mortgages, currencies, commodities, and equities related products. The company's Asset Management segment manages assets across various classes, including equity, fixed income, hedge funds, credit funds, private equity, real estate, currencies, and commodities; and provides customized investment advisory solutions, as well as invests in corporate, real estate, and infrastructure entities.
GS (The Goldman Sachs Group, Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $281.86B, a trailing P/E of 16.06, a beta of 1.27 versus the broader market, a 52-week range of 582.5-984.7, average daily share volume of 2.2M, a public-listing history dating back to 1999, approximately 47K full-time employees. These structural characteristics shape how GS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.27 places GS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. GS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GS?
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 GS snapshot
As of May 15, 2026, spot at $953.95, ATM IV 29.42%, IV rank 29.40%, expected move 8.44%. The collar on GS 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 28-day expiry.
Why this collar structure on GS specifically: IV regime affects collar pricing on both sides; compressed GS IV at 29.42% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.44% (roughly $80.47 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GS expiries trade a higher absolute premium for lower per-day decay. Position sizing on GS should anchor to the underlying notional of $953.95 per share and to the trader's directional view on GS stock.
GS collar setup
The GS 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 GS near $953.95, the first option leg uses a $1,000.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GS chain at a 28-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 GS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $953.95 | long |
| Sell 1 | Call | $1,000.00 | $12.05 |
| Buy 1 | Put | $905.00 | $13.08 |
GS collar risk and reward
- Net Premium / Debit
- -$95,497.50
- Max Profit (per contract)
- $4,502.50
- Max Loss (per contract)
- -$4,997.50
- Breakeven(s)
- $954.98
- Risk / Reward Ratio
- 0.901
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.
GS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GS. 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% | -$4,997.50 |
| $210.93 | -77.9% | -$4,997.50 |
| $421.86 | -55.8% | -$4,997.50 |
| $632.78 | -33.7% | -$4,997.50 |
| $843.70 | -11.6% | -$4,997.50 |
| $1,054.62 | +10.6% | +$4,502.50 |
| $1,265.55 | +32.7% | +$4,502.50 |
| $1,476.47 | +54.8% | +$4,502.50 |
| $1,687.39 | +76.9% | +$4,502.50 |
| $1,898.31 | +99.0% | +$4,502.50 |
When traders use collar on GS
Collars on GS hedge an existing long GS 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.
GS thesis for this collar
The market-implied 1-standard-deviation range for GS extends from approximately $873.48 on the downside to $1,034.42 on the upside. A GS collar hedges an existing long GS 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 GS IV rank near 29.40% 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 GS at 29.42%. As a Financial Services name, GS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GS-specific events.
GS 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. GS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GS alongside the broader basket even when GS-specific fundamentals are unchanged. Always rebuild the position from current GS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GS?
- A collar on GS is the collar strategy applied to GS (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 GS stock trading near $953.95, the strikes shown on this page are snapped to the nearest listed GS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GS 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 GS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.42%), the computed maximum profit is $4,502.50 per contract and the computed maximum loss is -$4,997.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GS collar?
- The breakeven for the GS collar priced on this page is roughly $954.98 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 GS market-implied 1-standard-deviation expected move is approximately 8.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GS?
- Collars on GS hedge an existing long GS 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 GS implied volatility affect this collar?
- GS ATM IV is at 29.42% with IV rank near 29.40%, 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.