GVA Collar Strategy
GVA (Granite Construction Incorporated), in the Industrials sector, (Engineering & Construction industry), listed on NYSE.
Granite Construction Incorporated is a leading U.S. company that functions as both an infrastructure contractor and a producer of essential construction materials. Its activities are primarily divided into two key segments: Construction and Materials. The Construction division is responsible for developing and restoring public infrastructure, encompassing roadways, bridges, rail systems, airports, marine facilities, dams, reservoirs, and aqueducts, alongside general site development. This segment also specializes in water infrastructure projects for a diverse clientele, including municipal bodies, commercial water suppliers, industrial facilities, and energy companies. Furthermore, it undertakes complex ventures such as mining operations, public safety installations, tunnel construction, and both solar and conventional power projects. The Materials segment focuses on manufacturing aggregates and asphalt, supplying these critical components for both the company's internal construction needs and for external sale to third parties.
GVA (Granite Construction Incorporated) trades in the Industrials sector, specifically Engineering & Construction, with a market capitalization of approximately $5.52B, a beta of 1.34 versus the broader market, a 52-week range of 97.26-162.08, average daily share volume of 843K, a public-listing history dating back to 1990, approximately 3K full-time employees. These structural characteristics shape how GVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.34 indicates GVA has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. GVA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GVA?
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.
GVA snapshot
As of August 14, 2026, spot at $126.59, ATM IV 31.30%, IV rank 33.82%, expected move 8.97%. The collar on GVA below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on GVA specifically: IV regime affects collar pricing on both sides; mid-range GVA IV at 31.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.97% (roughly $11.36 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on GVA should anchor to the underlying notional of $126.59 per share and to the trader's directional view on GVA stock.
GVA collar setup
The GVA collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GVA at $126.59 on that close, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GVA chain at a 35-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 GVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $126.59 | long |
| Sell 1 | Call | $135.00 | $2.15 |
| Buy 1 | Put | $120.00 | $2.50 |
GVA collar risk and reward
- Net Premium / Debit
- -$12,694.00
- Max Profit (per contract)
- $806.00
- Max Loss (per contract)
- -$694.00
- Breakeven(s)
- $126.94
- Risk / Reward Ratio
- 1.161
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.
GVA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GVA. 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% | -$694.00 |
| $28.00 | -77.9% | -$694.00 |
| $55.99 | -55.8% | -$694.00 |
| $83.98 | -33.7% | -$694.00 |
| $111.96 | -11.6% | -$694.00 |
| $139.95 | +10.6% | +$806.00 |
| $167.94 | +32.7% | +$806.00 |
| $195.93 | +54.8% | +$806.00 |
| $223.92 | +76.9% | +$806.00 |
| $251.91 | +99.0% | +$806.00 |
When traders use collar on GVA
Collars on GVA hedge an existing long GVA 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.
GVA thesis for this collar
The market-implied 1-standard-deviation range for GVA extends from approximately $115.23 on the downside to $137.95 on the upside. A GVA collar hedges an existing long GVA 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 GVA IV rank near 33.82% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on GVA should anchor more to the directional view and the expected-move geometry. As a Industrials name, GVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GVA-specific events.
GVA 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. GVA positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GVA alongside the broader basket even when GVA-specific fundamentals are unchanged. Always rebuild the position from current GVA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GVA?
- A collar on GVA is the collar strategy applied to GVA (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 GVA stock at $126.59 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GVA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are GVA 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 GVA collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.30%), the computed maximum profit is $806.00 per contract and the computed maximum loss is -$694.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GVA collar?
- The breakeven for the GVA collar priced on this page is roughly $126.94 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GVA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GVA?
- Collars on GVA hedge an existing long GVA 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 GVA implied volatility affect this collar?
- GVA ATM IV is at 31.30% with IV rank near 33.82%, 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.