KLIC Collar Strategy
KLIC (Kulicke and Soffa Industries, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Kulicke and Soffa Industries, Inc. designs, manufactures, and sells capital equipment and tools used to assemble semiconductor devices. It operates through two segments, Capital Equipment, and Aftermarket Products and Services (APS). The company manufactures and sells advanced displays; die-transfer, flip-chip, and TCB advanced packaging products; ball bonder, die-attach, electronics assembly, lithography, wafer-level bonder, and wedge bonder products; consumables, such as capillaries, dicing blades, and wedge bonds; and auto offline programming, KNet PLUS, and new product introduction/manufacturing execution system software products. It also services, maintains, repairs, and upgrades equipment. The company serves semiconductor device manufacturers, integrated device manufacturers, outsourced semiconductor assembly and test providers, other electronics manufacturers, industrial manufacturers, and automotive electronics suppliers primarily in the United States and the Asia/Pacific region. Kulicke and Soffa Industries, Inc. was founded in 1951 and is headquartered in Singapore.
KLIC (Kulicke and Soffa Industries, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $5.46B, a trailing P/E of 99.13, a beta of 1.67 versus the broader market, a 52-week range of 31.21-107.01, average daily share volume of 678K, a public-listing history dating back to 1958, approximately 3K full-time employees. These structural characteristics shape how KLIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.67 indicates KLIC 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 99.13 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. KLIC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on KLIC?
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 KLIC snapshot
As of May 15, 2026, spot at $101.81, ATM IV 61.90%, IV rank 49.05%, expected move 17.75%. The collar on KLIC 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 63-day expiry.
Why this collar structure on KLIC specifically: IV regime affects collar pricing on both sides; mid-range KLIC IV at 61.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.75% (roughly $18.07 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KLIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on KLIC should anchor to the underlying notional of $101.81 per share and to the trader's directional view on KLIC stock.
KLIC collar setup
The KLIC 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 KLIC near $101.81, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KLIC chain at a 63-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 KLIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $101.81 | long |
| Sell 1 | Call | $105.00 | $8.15 |
| Buy 1 | Put | $95.00 | $7.10 |
KLIC collar risk and reward
- Net Premium / Debit
- -$10,076.00
- Max Profit (per contract)
- $424.00
- Max Loss (per contract)
- -$576.00
- Breakeven(s)
- $100.76
- Risk / Reward Ratio
- 0.736
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.
KLIC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KLIC. 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% | -$576.00 |
| $22.52 | -77.9% | -$576.00 |
| $45.03 | -55.8% | -$576.00 |
| $67.54 | -33.7% | -$576.00 |
| $90.05 | -11.6% | -$576.00 |
| $112.56 | +10.6% | +$424.00 |
| $135.07 | +32.7% | +$424.00 |
| $157.58 | +54.8% | +$424.00 |
| $180.09 | +76.9% | +$424.00 |
| $202.60 | +99.0% | +$424.00 |
When traders use collar on KLIC
Collars on KLIC hedge an existing long KLIC 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.
KLIC thesis for this collar
The market-implied 1-standard-deviation range for KLIC extends from approximately $83.74 on the downside to $119.88 on the upside. A KLIC collar hedges an existing long KLIC 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 KLIC IV rank near 49.05% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on KLIC should anchor more to the directional view and the expected-move geometry. As a Technology name, KLIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KLIC-specific events.
KLIC 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. KLIC positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KLIC alongside the broader basket even when KLIC-specific fundamentals are unchanged. Always rebuild the position from current KLIC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KLIC?
- A collar on KLIC is the collar strategy applied to KLIC (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 KLIC stock trading near $101.81, the strikes shown on this page are snapped to the nearest listed KLIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KLIC 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 KLIC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.90%), the computed maximum profit is $424.00 per contract and the computed maximum loss is -$576.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KLIC collar?
- The breakeven for the KLIC collar priced on this page is roughly $100.76 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 KLIC market-implied 1-standard-deviation expected move is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KLIC?
- Collars on KLIC hedge an existing long KLIC 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 KLIC implied volatility affect this collar?
- KLIC ATM IV is at 61.90% with IV rank near 49.05%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.