KVHI Collar Strategy
KVHI (KVH Industries, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
KVH Industries, Inc. designs, develops, manufactures, and markets mobile connectivity products and services for the marine and land mobile markets in the United States and internationally. The company operates through Mobile Connectivity and Inertial Navigation segments. The company offers mobile satellite TV and communications products; two-way satellite communications systems; onboard TracPhone terminals and hub equipment; data management software; and Iridium OpenPort hardware products and services. It also offers airtime plans that enable customers to obtain Internet and voice services; and value-added, and news and radio content services to retail customers. In addition, the company provides navigation, guidance, and stabilization products for the commercial and defense markets comprising precision fiber optic gyro-based systems; tactical navigation systems for tactical trucks and light armored vehicles; and commercial products, such as navigation and positioning systems for various applications consisting of precision mapping, dynamic surveying, autonomous vehicles, train location control and track geometry measurement systems, industrial robotics, and optical stabilization applications. Further, it offers content, maritime news, sporting content, and television programming delivery services; movie distribution services; and services and support for the mini-VSAT Broadband solution, as well as IoT connectivity as a service.
KVHI (KVH Industries, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $213.9M, a beta of 0.43 versus the broader market, a 52-week range of 5.04-11.35, average daily share volume of 122K, a public-listing history dating back to 1996, approximately 247 full-time employees. These structural characteristics shape how KVHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.43 indicates KVHI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on KVHI?
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 KVHI snapshot
As of May 13, 2026, spot at $10.93, ATM IV 99.80%, IV rank 13.54%, expected move 28.61%. The collar on KVHI 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 36-day expiry.
Why this collar structure on KVHI specifically: IV regime affects collar pricing on both sides; compressed KVHI IV at 99.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.61% (roughly $3.13 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KVHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on KVHI should anchor to the underlying notional of $10.93 per share and to the trader's directional view on KVHI stock.
KVHI collar setup
The KVHI 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 KVHI near $10.93, the first option leg uses a $11.48 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KVHI chain at a 36-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 KVHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.93 | long |
| Sell 1 | Call | $11.48 | N/A |
| Buy 1 | Put | $10.38 | N/A |
KVHI 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.
KVHI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KVHI. 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 KVHI
Collars on KVHI hedge an existing long KVHI 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.
KVHI thesis for this collar
The market-implied 1-standard-deviation range for KVHI extends from approximately $7.80 on the downside to $14.06 on the upside. A KVHI collar hedges an existing long KVHI 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 KVHI IV rank near 13.54% 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 KVHI at 99.80%. As a Technology name, KVHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KVHI-specific events.
KVHI 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. KVHI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KVHI alongside the broader basket even when KVHI-specific fundamentals are unchanged. Always rebuild the position from current KVHI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KVHI?
- A collar on KVHI is the collar strategy applied to KVHI (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 KVHI stock trading near $10.93, the strikes shown on this page are snapped to the nearest listed KVHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KVHI 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 KVHI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 99.80%), 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 KVHI collar?
- The breakeven for the KVHI 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 KVHI market-implied 1-standard-deviation expected move is approximately 28.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KVHI?
- Collars on KVHI hedge an existing long KVHI 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 KVHI implied volatility affect this collar?
- KVHI ATM IV is at 99.80% with IV rank near 13.54%, 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.