KRNT Collar Strategy
KRNT (Kornit Digital Ltd.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Kornit Digital Ltd. is a global leader in providing advanced digital printing solutions tailored for the textile industry. With a global footprint, their operations extend across North America, Europe, the Middle East, Africa, and the Asia Pacific, specifically serving the fashion, apparel, and home decor sectors. The company's comprehensive portfolio encompasses state-of-the-art digital printing systems, proprietary inks and consumables, specialized software, and a suite of value-added services. Key offerings include their innovative direct-to-garment (DTG) printing platforms, designed to meet the needs of a wide spectrum of clients, from small-scale industrial operators to large-volume manufacturers. They also provide their unique NeoPigment ink series, the QuickP designer software, and essential services such as maintenance, technical support, expert consulting, and professional implementation. Kornit Digital caters to a diverse clientele, including textile decorators, e-commerce businesses, established brand owners, and contract printers.
KRNT (Kornit Digital Ltd.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $744.2M, a beta of 1.74 versus the broader market, a 52-week range of 11.93-22.06, average daily share volume of 292K, a public-listing history dating back to 2015, approximately 715 full-time employees. These structural characteristics shape how KRNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.74 indicates KRNT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on KRNT?
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 KRNT snapshot
As of June 29, 2026, spot at $16.20, ATM IV 39.40%, IV rank 4.39%, expected move 11.30%. The collar on KRNT 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 18-day expiry.
Why this collar structure on KRNT specifically: IV regime affects collar pricing on both sides; compressed KRNT IV at 39.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.30% (roughly $1.83 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KRNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRNT should anchor to the underlying notional of $16.20 per share and to the trader's directional view on KRNT stock.
KRNT collar setup
The KRNT 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 KRNT near $16.20, the first option leg uses a $17.01 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRNT chain at a 18-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 KRNT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.20 | long |
| Sell 1 | Call | $17.01 | N/A |
| Buy 1 | Put | $15.39 | N/A |
KRNT 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.
KRNT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KRNT. 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 KRNT
Collars on KRNT hedge an existing long KRNT 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.
KRNT thesis for this collar
The market-implied 1-standard-deviation range for KRNT extends from approximately $14.37 on the downside to $18.03 on the upside. A KRNT collar hedges an existing long KRNT 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 KRNT IV rank near 4.39% 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 KRNT at 39.40%. As a Industrials name, KRNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRNT-specific events.
KRNT 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. KRNT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRNT alongside the broader basket even when KRNT-specific fundamentals are unchanged. Always rebuild the position from current KRNT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KRNT?
- A collar on KRNT is the collar strategy applied to KRNT (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 KRNT stock trading near $16.20, the strikes shown on this page are snapped to the nearest listed KRNT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRNT 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 KRNT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 39.40%), 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 KRNT collar?
- The breakeven for the KRNT 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 KRNT market-implied 1-standard-deviation expected move is approximately 11.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KRNT?
- Collars on KRNT hedge an existing long KRNT 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 KRNT implied volatility affect this collar?
- KRNT ATM IV is at 39.40% with IV rank near 4.39%, 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.