INDB Collar Strategy
INDB (Independent Bank Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Independent Bank Corp. operates as the bank holding company for Rockland Trust Company that provides commercial banking products and services to individuals and small-to-medium sized businesses primarily in Massachusetts. The company accepts interest checking, money market, and savings accounts, as well as demand deposits and time certificates of deposit. It also offers commercial and industrial, commercial real estate and construction, small business, consumer real estate, and personal loans. In addition, the company provides investment management and trust services to individuals, institutions, small businesses, and charitable institutions; Internet and mobile banking services, as well as estate settlement, financial planning, tax services, and other services; automated teller machine and debit cards; and mutual fund and unit investment trust shares, general securities, fixed and variable annuities, and life insurance products. As of December 31, 2021, it operates one hundred nineteen retail branches, two limited-service retail branches, and one mobile branch located within Barnstable, Bristol, Dukes, Essex, Middlesex, Nantucket, Norfolk, Plymouth, Suffolk, and Worcester counties in Eastern Massachusetts. The company was founded in 1907 and is headquartered in Rockland, Massachusetts.
INDB (Independent Bank Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.68B, a trailing P/E of 15.50, a beta of 0.80 versus the broader market, a 52-week range of 57.01-87, average daily share volume of 336K, a public-listing history dating back to 1986, approximately 2K full-time employees. These structural characteristics shape how INDB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places INDB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. INDB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on INDB?
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 INDB snapshot
As of May 15, 2026, spot at $76.25, ATM IV 48.10%, IV rank 6.12%, expected move 13.79%. The collar on INDB 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 INDB specifically: IV regime affects collar pricing on both sides; compressed INDB IV at 48.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.79% (roughly $10.51 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 INDB expiries trade a higher absolute premium for lower per-day decay. Position sizing on INDB should anchor to the underlying notional of $76.25 per share and to the trader's directional view on INDB stock.
INDB collar setup
The INDB 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 INDB near $76.25, the first option leg uses a $80.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INDB 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 INDB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $76.25 | long |
| Sell 1 | Call | $80.06 | N/A |
| Buy 1 | Put | $72.44 | N/A |
INDB 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.
INDB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on INDB. 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 INDB
Collars on INDB hedge an existing long INDB 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.
INDB thesis for this collar
The market-implied 1-standard-deviation range for INDB extends from approximately $65.74 on the downside to $86.76 on the upside. A INDB collar hedges an existing long INDB 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 INDB IV rank near 6.12% 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 INDB at 48.10%. As a Financial Services name, INDB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INDB-specific events.
INDB 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. INDB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INDB alongside the broader basket even when INDB-specific fundamentals are unchanged. Always rebuild the position from current INDB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on INDB?
- A collar on INDB is the collar strategy applied to INDB (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 INDB stock trading near $76.25, the strikes shown on this page are snapped to the nearest listed INDB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INDB 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 INDB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.10%), 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 INDB collar?
- The breakeven for the INDB 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 INDB market-implied 1-standard-deviation expected move is approximately 13.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on INDB?
- Collars on INDB hedge an existing long INDB 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 INDB implied volatility affect this collar?
- INDB ATM IV is at 48.10% with IV rank near 6.12%, 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.