LAKE Collar Strategy
LAKE (Lakeland Industries, Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NASDAQ.
Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. It offers limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and firefighting and heat protective apparel to protect against fire. The company also provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts. In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries. The company sells its products to a network of approximately 1,600 safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives. It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments.
LAKE (Lakeland Industries, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $103.5M, a beta of 1.45 versus the broader market, a 52-week range of 7.15-20.5, average daily share volume of 102K, a public-listing history dating back to 1986, approximately 2K full-time employees. These structural characteristics shape how LAKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates LAKE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. LAKE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on LAKE?
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 LAKE snapshot
As of May 13, 2026, spot at $10.57, ATM IV 90.40%, IV rank 13.45%, expected move 25.92%. The collar on LAKE 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 LAKE specifically: IV regime affects collar pricing on both sides; compressed LAKE IV at 90.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.92% (roughly $2.74 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 LAKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAKE should anchor to the underlying notional of $10.57 per share and to the trader's directional view on LAKE stock.
LAKE collar setup
The LAKE 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 LAKE near $10.57, the first option leg uses a $11.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAKE 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 LAKE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.57 | long |
| Sell 1 | Call | $11.10 | N/A |
| Buy 1 | Put | $10.04 | N/A |
LAKE 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.
LAKE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LAKE. 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 LAKE
Collars on LAKE hedge an existing long LAKE 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.
LAKE thesis for this collar
The market-implied 1-standard-deviation range for LAKE extends from approximately $7.83 on the downside to $13.31 on the upside. A LAKE collar hedges an existing long LAKE 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 LAKE IV rank near 13.45% 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 LAKE at 90.40%. As a Consumer Cyclical name, LAKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAKE-specific events.
LAKE 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. LAKE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAKE alongside the broader basket even when LAKE-specific fundamentals are unchanged. Always rebuild the position from current LAKE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LAKE?
- A collar on LAKE is the collar strategy applied to LAKE (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 LAKE stock trading near $10.57, the strikes shown on this page are snapped to the nearest listed LAKE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LAKE 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 LAKE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 90.40%), 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 LAKE collar?
- The breakeven for the LAKE 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 LAKE market-implied 1-standard-deviation expected move is approximately 25.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LAKE?
- Collars on LAKE hedge an existing long LAKE 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 LAKE implied volatility affect this collar?
- LAKE ATM IV is at 90.40% with IV rank near 13.45%, 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.