KEYS Collar Strategy
KEYS (Keysight Technologies, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.
Keysight Technologies, Inc. provides electronic design and test solutions to commercial communications, networking, aerospace, defense and government, automotive, energy, semiconductor, electronic, and education industries in the Americas, Europe, and the Asia Pacific. Its Communications Solutions Group segment provides electronic design automation (EDA) software; radio frequency and microwave test solutions, and related software; hardware and virtual network test platforms and software applications, including data center, routing and switching, software defined networking, security, and encryption; oscilloscopes, logic and serial protocol analyzers, logic-signal sources, arbitrary waveform generators, and bit error rate testers; and optical modulation analyzers, optical component analyzers, optical power meters, and optical laser source solutions, as well as resells refurbished used Keysight equipment. The company's Electronic Industrial Solutions Group segment offers design tools; design verification tools; and digital multimeters, function generators, frequency counters, data acquisition systems, audio analyzers, LCR meters, thermal imagers, source measure units, ultra-high precision device current analyzers, and test executive software platforms, as well as various power supplies comprising AC/DC modular supplies and electronically programmable loads. This segment also provides printed-circuit-board-assembly testers, integrated circuit parametric testers, and sub-nano-meter positioning sub-assemblies; and test and measurement products and software. The company offers product support, technical support, and training and consulting services. It sells its products through direct sales force, distributors, resellers, and manufacturer's representatives.
KEYS (Keysight Technologies, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $61.95B, a trailing P/E of 64.85, a beta of 1.26 versus the broader market, a 52-week range of 152.846-370.175, average daily share volume of 1.5M, a public-listing history dating back to 2014, approximately 15K full-time employees. These structural characteristics shape how KEYS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places KEYS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 64.85 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.
What is a collar on KEYS?
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 KEYS snapshot
As of May 13, 2026, spot at $361.43, ATM IV 58.60%, IV rank 98.90%, expected move 16.80%. The collar on KEYS 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 KEYS specifically: IV regime affects collar pricing on both sides; elevated KEYS 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 $60.72 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 KEYS expiries trade a higher absolute premium for lower per-day decay. Position sizing on KEYS should anchor to the underlying notional of $361.43 per share and to the trader's directional view on KEYS stock.
KEYS collar setup
The KEYS 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 KEYS near $361.43, the first option leg uses a $380.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KEYS 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 KEYS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $361.43 | long |
| Sell 1 | Call | $380.00 | $14.30 |
| Buy 1 | Put | $340.00 | $20.25 |
KEYS collar risk and reward
- Net Premium / Debit
- -$36,738.00
- Max Profit (per contract)
- $1,262.00
- Max Loss (per contract)
- -$2,738.00
- Breakeven(s)
- $367.38
- Risk / Reward Ratio
- 0.461
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.
KEYS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KEYS. 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% | -$2,738.00 |
| $79.92 | -77.9% | -$2,738.00 |
| $159.84 | -55.8% | -$2,738.00 |
| $239.75 | -33.7% | -$2,738.00 |
| $319.66 | -11.6% | -$2,738.00 |
| $399.58 | +10.6% | +$1,262.00 |
| $479.49 | +32.7% | +$1,262.00 |
| $559.40 | +54.8% | +$1,262.00 |
| $639.31 | +76.9% | +$1,262.00 |
| $719.23 | +99.0% | +$1,262.00 |
When traders use collar on KEYS
Collars on KEYS hedge an existing long KEYS 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.
KEYS thesis for this collar
The market-implied 1-standard-deviation range for KEYS extends from approximately $300.71 on the downside to $422.15 on the upside. A KEYS collar hedges an existing long KEYS 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 KEYS IV rank near 98.90% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on KEYS at 58.60%. As a Technology name, KEYS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KEYS-specific events.
KEYS 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. KEYS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KEYS alongside the broader basket even when KEYS-specific fundamentals are unchanged. Always rebuild the position from current KEYS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KEYS?
- A collar on KEYS is the collar strategy applied to KEYS (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 KEYS stock trading near $361.43, the strikes shown on this page are snapped to the nearest listed KEYS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KEYS 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 KEYS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.60%), the computed maximum profit is $1,262.00 per contract and the computed maximum loss is -$2,738.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KEYS collar?
- The breakeven for the KEYS collar priced on this page is roughly $367.38 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 KEYS 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 KEYS?
- Collars on KEYS hedge an existing long KEYS 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 KEYS implied volatility affect this collar?
- KEYS ATM IV is at 58.60% with IV rank near 98.90%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.