LAZ Collar Strategy
LAZ (Lazard Ltd), in the Financial Services sector, (Financial - Capital Markets industry), listed on NYSE.
Lazard Ltd, together with its subsidiaries, operates as a financial advisory and asset management firm in North America, Europe, Asia, Australia, and Central and South America. It operates in two segments, Financial Advisory and Asset Management. The Financial Advisory segment offers various financial advisory services regarding mergers and acquisitions, restructurings, capital advisory, shareholder advisory, capital raising, sovereign advisory, and other strategic advisory matters. This segment serves corporate, partnership, institutional, government, sovereign, and individual clients across various industry areas, including consumers, financial institutions, healthcare and life sciences, industrials, power and energy/infrastructure, and real estate, as well as technology, telecommunication, and media and entertainment. The Asset Management segment offers a range of investment solutions, and investment and wealth management services in equity and fixed income strategies; asset allocation strategies; and alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries, and private clients. The company was founded in 1848 and is based in Hamilton, Bermuda.
LAZ (Lazard Ltd) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $4.45B, a trailing P/E of 16.23, a beta of 1.43 versus the broader market, a 52-week range of 38.67-58.75, average daily share volume of 1.5M, a public-listing history dating back to 2005, approximately 3K full-time employees. These structural characteristics shape how LAZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates LAZ has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. LAZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on LAZ?
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 LAZ snapshot
As of May 12, 2026, spot at $46.06, ATM IV 47.50%, IV rank 68.10%, expected move 13.62%. The collar on LAZ 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 LAZ specifically: IV regime affects collar pricing on both sides; mid-range LAZ IV at 47.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.62% (roughly $6.27 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 LAZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAZ should anchor to the underlying notional of $46.06 per share and to the trader's directional view on LAZ stock.
LAZ collar setup
The LAZ 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 LAZ near $46.06, the first option leg uses a $48.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAZ 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 LAZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $46.06 | long |
| Sell 1 | Call | $48.00 | $2.48 |
| Buy 1 | Put | $44.00 | $2.68 |
LAZ collar risk and reward
- Net Premium / Debit
- -$4,626.00
- Max Profit (per contract)
- $174.00
- Max Loss (per contract)
- -$226.00
- Breakeven(s)
- $46.26
- Risk / Reward Ratio
- 0.770
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.
LAZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LAZ. 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% | -$226.00 |
| $10.19 | -77.9% | -$226.00 |
| $20.38 | -55.8% | -$226.00 |
| $30.56 | -33.7% | -$226.00 |
| $40.74 | -11.5% | -$226.00 |
| $50.93 | +10.6% | +$174.00 |
| $61.11 | +32.7% | +$174.00 |
| $71.29 | +54.8% | +$174.00 |
| $81.47 | +76.9% | +$174.00 |
| $91.66 | +99.0% | +$174.00 |
When traders use collar on LAZ
Collars on LAZ hedge an existing long LAZ 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.
LAZ thesis for this collar
The market-implied 1-standard-deviation range for LAZ extends from approximately $39.79 on the downside to $52.33 on the upside. A LAZ collar hedges an existing long LAZ 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 LAZ IV rank near 68.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on LAZ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, LAZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAZ-specific events.
LAZ 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. LAZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAZ alongside the broader basket even when LAZ-specific fundamentals are unchanged. Always rebuild the position from current LAZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LAZ?
- A collar on LAZ is the collar strategy applied to LAZ (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 LAZ stock trading near $46.06, the strikes shown on this page are snapped to the nearest listed LAZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LAZ 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 LAZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 47.50%), the computed maximum profit is $174.00 per contract and the computed maximum loss is -$226.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LAZ collar?
- The breakeven for the LAZ collar priced on this page is roughly $46.26 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 LAZ market-implied 1-standard-deviation expected move is approximately 13.62%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LAZ?
- Collars on LAZ hedge an existing long LAZ 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 LAZ implied volatility affect this collar?
- LAZ ATM IV is at 47.50% with IV rank near 68.10%, 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.