IIIV Collar Strategy
IIIV (i3 Verticals, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
i3 Verticals, Inc. (IIIV) delivers comprehensive payment and software solutions, catering to the operational needs of small and medium-sized businesses, as well as various organizations within the education, non-profit, public sector, and healthcare industries across the United States. The company's operations are divided into two primary divisions: Merchant Services, and Proprietary Software and Payments. Through its offerings, i3 Verticals enables clients to seamlessly accept electronic payments. This critical service facilitates the secure and efficient exchange of funds and transaction data among clients, financial institutions, and diverse payment networks. Beyond payment processing, the firm also licenses its proprietary software, provides ongoing technical support, and supplies other solutions integral to point-of-sale operations. Its solutions reach customers via a multi-faceted approach, including a direct sales team, various distribution partners (such as independent software vendors, value-added resellers, and independent sales organizations), and referral channels comprising financial institutions, trade associations, chambers of commerce, and card issuers.
IIIV (i3 Verticals, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $390.5M, a trailing P/E of 29.66, a beta of 0.84 versus the broader market, a 52-week range of 16-33.97, average daily share volume of 430K, a public-listing history dating back to 2018, approximately 1K full-time employees. These structural characteristics shape how IIIV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places IIIV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on IIIV?
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.
IIIV snapshot
As of August 14, 2026, spot at $16.34, ATM IV 31.80%, IV rank 3.61%, expected move 9.12%. The collar on IIIV below is built from the 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 IIIV specifically: IV regime affects collar pricing on both sides; compressed IIIV IV at 31.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.12% (roughly $1.49 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 IIIV expiries trade a higher absolute premium for lower per-day decay. Position sizing on IIIV should anchor to the underlying notional of $16.34 per share and to the trader's directional view on IIIV stock.
IIIV collar setup
The IIIV 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 IIIV at $16.34 on that close, the first option leg uses a $17.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IIIV 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 IIIV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.34 | long |
| Sell 1 | Call | $17.16 | N/A |
| Buy 1 | Put | $15.52 | N/A |
IIIV 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.
IIIV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IIIV. 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 IIIV
Collars on IIIV hedge an existing long IIIV 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.
IIIV thesis for this collar
The market-implied 1-standard-deviation range for IIIV extends from approximately $14.85 on the downside to $17.83 on the upside. A IIIV collar hedges an existing long IIIV 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 IIIV IV rank near 3.61% 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 IIIV at 31.80%. As a Technology name, IIIV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IIIV-specific events.
IIIV 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. IIIV positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IIIV alongside the broader basket even when IIIV-specific fundamentals are unchanged. Always rebuild the position from current IIIV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IIIV?
- A collar on IIIV is the collar strategy applied to IIIV (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 IIIV stock at $16.34 on the most recent close, the strikes shown on this page are snapped to the nearest listed IIIV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IIIV 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 IIIV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), 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 IIIV collar?
- The breakeven for the IIIV collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 IIIV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IIIV?
- Collars on IIIV hedge an existing long IIIV 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 IIIV implied volatility affect this collar?
- IIIV ATM IV is at 31.80% with IV rank near 3.61%, 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.