GSIT Collar Strategy
GSIT (GSI Technology, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
GSI Technology, Inc., a fabless semiconductor company, designs, develops, and markets semiconductor memory solutions to networking, industrial, medical, aerospace, and military customers in the United States, China, Singapore, Germany, the Netherlands, and internationally. The company's associative processing unit products offers applications using similarity search in visual search queries for ecommerce, computer vision, drug discovery, cyber security, and service markets. In addition, it offers static random access memory (SRAM) products, such as SyncBurst for microprocessor cache and other applications; No Bus Turnaround SRAMs to address the needs of networking and telecom applications; SigmaQuad and SigmaDDR products for density and random transaction rate requirements of networking and telecom applications; Low Latency DRAMs a solution for advanced data networking applications; Asynchronous, a main memory for small cache-less embedded processors for industrial electronics, measurement systems and cost-sensitive networking equipment, and other applications; and specialty SRAMs. The company also provide radiation-hardened and radiation-tolerant SRAMs for aerospace and military applications, such as networking satellites and missiles. Its products are used as components in our OEM customers' products, including routers, switches and other networking and telecommunications products; military and aerospace applications, such as radar and guidance systems and satellites; audio/video processing; test and measurement applications consisting of high-speed testers; and automotive applications, such as smart cruise control; and medical applications, including ultrasound and CAT scan equipment. The company markets its products through a network of independent sales representatives and distributors.
GSIT (GSI Technology, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $357.6M, a beta of 1.93 versus the broader market, a 52-week range of 2.82-18.15, average daily share volume of 1.1M, a public-listing history dating back to 2007, approximately 148 full-time employees. These structural characteristics shape how GSIT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.93 indicates GSIT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on GSIT?
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 GSIT snapshot
As of May 15, 2026, spot at $9.62, ATM IV 146.30%, IV rank 43.21%, expected move 41.94%. The collar on GSIT 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 GSIT specifically: IV regime affects collar pricing on both sides; mid-range GSIT IV at 146.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 41.94% (roughly $4.03 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 GSIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on GSIT should anchor to the underlying notional of $9.62 per share and to the trader's directional view on GSIT stock.
GSIT collar setup
The GSIT 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 GSIT near $9.62, the first option leg uses a $10.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GSIT 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 GSIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.62 | long |
| Sell 1 | Call | $10.10 | N/A |
| Buy 1 | Put | $9.14 | N/A |
GSIT 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.
GSIT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GSIT. 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 GSIT
Collars on GSIT hedge an existing long GSIT 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.
GSIT thesis for this collar
The market-implied 1-standard-deviation range for GSIT extends from approximately $5.59 on the downside to $13.65 on the upside. A GSIT collar hedges an existing long GSIT 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 GSIT IV rank near 43.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on GSIT should anchor more to the directional view and the expected-move geometry. As a Technology name, GSIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GSIT-specific events.
GSIT 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. GSIT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GSIT alongside the broader basket even when GSIT-specific fundamentals are unchanged. Always rebuild the position from current GSIT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GSIT?
- A collar on GSIT is the collar strategy applied to GSIT (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 GSIT stock trading near $9.62, the strikes shown on this page are snapped to the nearest listed GSIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GSIT 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 GSIT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 146.30%), 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 GSIT collar?
- The breakeven for the GSIT 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 GSIT market-implied 1-standard-deviation expected move is approximately 41.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GSIT?
- Collars on GSIT hedge an existing long GSIT 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 GSIT implied volatility affect this collar?
- GSIT ATM IV is at 146.30% with IV rank near 43.21%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.