IRM Collar Strategy
IRM (Iron Mountain Incorporated), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.
Established in 1951, Iron Mountain Incorporated (NYSE: IRM) has become the world's foremost authority in storage and information management solutions. More than 225,000 organizations globally trust Iron Mountain with their critical assets. With an extensive physical infrastructure spanning over 90 million square feet, the company operates approximately 1,450 facilities in around 50 countries. Within this vast network, Iron Mountain safeguards billions of valued items, including vital corporate records, highly confidential digital assets, and invaluable cultural and historical artifacts. Their comprehensive suite of offerings encompasses secure document archiving, robust information governance, digital transformation initiatives, confidential destruction services, along with advanced data centers, cloud computing solutions, and specialized art storage and logistics. These services empower clients to mitigate costs and risks, ensure regulatory compliance, facilitate swift disaster recovery, and enable a more efficient, digital-first operational model.
IRM (Iron Mountain Incorporated) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $37.00B, a trailing P/E of 88.44, a beta of 1.22 versus the broader market, a 52-week range of 77.77-134.68, average daily share volume of 1.7M, a public-listing history dating back to 1996, approximately 29K full-time employees. These structural characteristics shape how IRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places IRM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 88.44 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. IRM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IRM?
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.
IRM snapshot
As of August 14, 2026, spot at $129.53, ATM IV 29.13%, IV rank 25.33%, expected move 8.35%. The collar on IRM 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 28-day expiry.
Why this collar structure on IRM specifically: IV regime affects collar pricing on both sides; compressed IRM IV at 29.13% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.35% (roughly $10.82 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 IRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRM should anchor to the underlying notional of $129.53 per share and to the trader's directional view on IRM stock.
IRM collar setup
The IRM 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 IRM at $129.53 on that close, the first option leg uses a $136.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRM 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 IRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $129.53 | long |
| Sell 1 | Call | $136.00 | $1.33 |
| Buy 1 | Put | $123.00 | $1.88 |
IRM collar risk and reward
- Net Premium / Debit
- -$13,008.00
- Max Profit (per contract)
- $592.00
- Max Loss (per contract)
- -$708.00
- Breakeven(s)
- $130.08
- Risk / Reward Ratio
- 0.836
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.
IRM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IRM. 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% | -$708.00 |
| $28.65 | -77.9% | -$708.00 |
| $57.29 | -55.8% | -$708.00 |
| $85.93 | -33.7% | -$708.00 |
| $114.56 | -11.6% | -$708.00 |
| $143.20 | +10.6% | +$592.00 |
| $171.84 | +32.7% | +$592.00 |
| $200.48 | +54.8% | +$592.00 |
| $229.12 | +76.9% | +$592.00 |
| $257.76 | +99.0% | +$592.00 |
When traders use collar on IRM
Collars on IRM hedge an existing long IRM 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.
IRM thesis for this collar
The market-implied 1-standard-deviation range for IRM extends from approximately $118.71 on the downside to $140.35 on the upside. A IRM collar hedges an existing long IRM 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 IRM IV rank near 25.33% 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 IRM at 29.13%. As a Real Estate name, IRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRM-specific events.
IRM 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. IRM positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRM alongside the broader basket even when IRM-specific fundamentals are unchanged. Always rebuild the position from current IRM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IRM?
- A collar on IRM is the collar strategy applied to IRM (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 IRM stock at $129.53 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed IRM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are IRM 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 IRM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.13%), the computed maximum profit is $592.00 per contract and the computed maximum loss is -$708.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRM collar?
- The breakeven for the IRM collar priced on this page is roughly $130.08 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 IRM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IRM?
- Collars on IRM hedge an existing long IRM 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 IRM implied volatility affect this collar?
- IRM ATM IV is at 29.13% with IV rank near 25.33%, 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.