JAKK Collar Strategy
JAKK (JAKKS Pacific, Inc.), in the Consumer Cyclical sector, (Leisure industry), listed on NASDAQ.
JAKKS Pacific, Inc. develops, produces, markets, sells, and distributes toys, consumables, and electronics and related products worldwide. It operates in two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, kiddie pools, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; and junior sports toys, including hyper-charged balls, sport sets, and toy hoops. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers.
JAKK (JAKKS Pacific, Inc.) trades in the Consumer Cyclical sector, specifically Leisure, with a market capitalization of approximately $246.2M, a trailing P/E of 30.87, a beta of 1.50 versus the broader market, a 52-week range of 14.87-24.45, average daily share volume of 101K, a public-listing history dating back to 1996, approximately 680 full-time employees. These structural characteristics shape how JAKK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.50 indicates JAKK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. JAKK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on JAKK?
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 JAKK snapshot
As of May 15, 2026, spot at $21.44, ATM IV 58.60%, IV rank 7.91%, expected move 16.80%. The collar on JAKK 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 JAKK specifically: IV regime affects collar pricing on both sides; compressed JAKK IV at 58.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.80% (roughly $3.60 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 JAKK expiries trade a higher absolute premium for lower per-day decay. Position sizing on JAKK should anchor to the underlying notional of $21.44 per share and to the trader's directional view on JAKK stock.
JAKK collar setup
The JAKK 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 JAKK near $21.44, the first option leg uses a $22.51 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JAKK 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 JAKK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.44 | long |
| Sell 1 | Call | $22.51 | N/A |
| Buy 1 | Put | $20.37 | N/A |
JAKK 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.
JAKK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on JAKK. 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 JAKK
Collars on JAKK hedge an existing long JAKK 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.
JAKK thesis for this collar
The market-implied 1-standard-deviation range for JAKK extends from approximately $17.84 on the downside to $25.04 on the upside. A JAKK collar hedges an existing long JAKK 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 JAKK IV rank near 7.91% 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 JAKK at 58.60%. As a Consumer Cyclical name, JAKK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JAKK-specific events.
JAKK 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. JAKK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JAKK alongside the broader basket even when JAKK-specific fundamentals are unchanged. Always rebuild the position from current JAKK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on JAKK?
- A collar on JAKK is the collar strategy applied to JAKK (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 JAKK stock trading near $21.44, the strikes shown on this page are snapped to the nearest listed JAKK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are JAKK 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 JAKK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.60%), 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 JAKK collar?
- The breakeven for the JAKK 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 JAKK market-implied 1-standard-deviation expected move is approximately 16.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on JAKK?
- Collars on JAKK hedge an existing long JAKK 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 JAKK implied volatility affect this collar?
- JAKK ATM IV is at 58.60% with IV rank near 7.91%, 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.