KOPN Collar Strategy
KOPN (Kopin Corp.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Kopin Corporation, together with its subsidiaries, develops, manufactures, and sells microdisplays, subassemblies, and related components for defense, enterprise, industrial, and consumer products in the United States, the Asia-Pacific, Europe, and internationally. It offers miniature active-matrix liquid crystal displays, ferroelectric liquid crystal on silicon displays, organic light emitting diode displays, MicroLED display technologies, application specific optical solutions, backlights, and optical lenses. The company’s products are used for soldier thermal weapon rifle sights, avionic fixed and rotary wing pilot helmets, armored vehicle targeting systems, and training and simulation headsets; industrial and medical headsets; 3D optical inspection systems; and consumer augmented reality and virtual reality wearable headsets systems. Kopin Corporation was incorporated in 1984 and is headquartered in Westborough, Massachusetts.
KOPN (Kopin Corp.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $707.8M, a trailing P/E of 373.64, a beta of 3.44 versus the broader market, a 52-week range of 1.44-6.61, average daily share volume of 8.9M, a public-listing history dating back to 1992, approximately 181 full-time employees. These structural characteristics shape how KOPN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.44 indicates KOPN 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 373.64 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 KOPN?
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 KOPN snapshot
As of June 30, 2026, spot at $4.50, ATM IV 119.53%, IV rank 22.14%, expected move 34.27%. The collar on KOPN 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 24-day expiry.
Why this collar structure on KOPN specifically: IV regime affects collar pricing on both sides; compressed KOPN IV at 119.53% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 34.27% (roughly $1.54 on the underlying). The 24-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KOPN expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOPN should anchor to the underlying notional of $4.50 per share and to the trader's directional view on KOPN stock.
KOPN collar setup
The KOPN 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 KOPN near $4.50, the first option leg uses a $4.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KOPN chain at a 24-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 KOPN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.50 | long |
| Sell 1 | Call | $4.73 | N/A |
| Buy 1 | Put | $4.27 | N/A |
KOPN 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.
KOPN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KOPN. 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 KOPN
Collars on KOPN hedge an existing long KOPN 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.
KOPN thesis for this collar
The market-implied 1-standard-deviation range for KOPN extends from approximately $2.96 on the downside to $6.04 on the upside. A KOPN collar hedges an existing long KOPN 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 KOPN IV rank near 22.14% 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 KOPN at 119.53%. As a Technology name, KOPN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOPN-specific events.
KOPN 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. KOPN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KOPN alongside the broader basket even when KOPN-specific fundamentals are unchanged. Always rebuild the position from current KOPN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KOPN?
- A collar on KOPN is the collar strategy applied to KOPN (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 KOPN stock trading near $4.50, the strikes shown on this page are snapped to the nearest listed KOPN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KOPN 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 KOPN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 119.53%), 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 KOPN collar?
- The breakeven for the KOPN 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 KOPN market-implied 1-standard-deviation expected move is approximately 34.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KOPN?
- Collars on KOPN hedge an existing long KOPN 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 KOPN implied volatility affect this collar?
- KOPN ATM IV is at 119.53% with IV rank near 22.14%, 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.