JACK Collar Strategy
JACK (Jack in the Box Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
Jack in the Box Inc. is engaged in the operation and franchising of its namesake quick-service dining establishments. By November 23, 2021, the company's network encompassed approximately 2,200 Jack in the Box fast-food outlets situated across 21 U.S. states and the territory of Guam. The enterprise was founded in 1951, with its primary corporate base located in San Diego, California.
JACK (Jack in the Box Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $324.8M, a trailing P/E of 9.77, a beta of 1.40 versus the broader market, a 52-week range of 8.92-23.86, average daily share volume of 940K, a public-listing history dating back to 1992, approximately 5K full-time employees. These structural characteristics shape how JACK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.40 indicates JACK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 9.77 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. JACK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on JACK?
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.
JACK snapshot
As of August 14, 2026, spot at $17.27, ATM IV 78.40%, IV rank 16.46%, expected move 22.48%. The collar on JACK 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 JACK specifically: IV regime affects collar pricing on both sides; compressed JACK IV at 78.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.48% (roughly $3.88 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 JACK expiries trade a higher absolute premium for lower per-day decay. Position sizing on JACK should anchor to the underlying notional of $17.27 per share and to the trader's directional view on JACK stock.
JACK collar setup
The JACK 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 JACK at $17.27 on that close, the first option leg uses a $18.13 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JACK 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 JACK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.27 | long |
| Sell 1 | Call | $18.13 | N/A |
| Buy 1 | Put | $16.41 | N/A |
JACK 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.
JACK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on JACK. 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 JACK
Collars on JACK hedge an existing long JACK 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.
JACK thesis for this collar
The market-implied 1-standard-deviation range for JACK extends from approximately $13.39 on the downside to $21.15 on the upside. A JACK collar hedges an existing long JACK 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 JACK IV rank near 16.46% 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 JACK at 78.40%. As a Consumer Cyclical name, JACK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JACK-specific events.
JACK 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. JACK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JACK alongside the broader basket even when JACK-specific fundamentals are unchanged. Always rebuild the position from current JACK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on JACK?
- A collar on JACK is the collar strategy applied to JACK (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 JACK stock at $17.27 on the most recent close, the strikes shown on this page are snapped to the nearest listed JACK chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are JACK 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 JACK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.40%), 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 JACK collar?
- The breakeven for the JACK 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 JACK market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on JACK?
- Collars on JACK hedge an existing long JACK 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 JACK implied volatility affect this collar?
- JACK ATM IV is at 78.40% with IV rank near 16.46%, 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.