LCII Collar Strategy
LCII (LCI Industries), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.
LCI Industries, operating globally through its subsidiaries, specializes in producing and delivering a wide array of components for recreational vehicle (RV) manufacturers and various associated industries. The company's operations are divided into two primary divisions: Original Equipment Manufacturers (OEM) and Aftermarket. The Original Equipment Manufacturers (OEM) segment is responsible for the design, production, and distribution of a comprehensive portfolio of engineered components. This extensive range covers structural elements like steel chassis and suspension solutions; functional systems such as slide-out mechanisms, leveling systems, and various doors; interior amenities including thermoformed bath/kitchen products, furniture, and mattresses; and exterior features like windows, awnings, and towing products. The segment also supplies advanced electronics, appliances, climate control units, and entertainment systems. It primarily serves primary manufacturers in the recreational vehicle sector, encompassing various trailer types and campers, alongside a broad spectrum of associated industries.
LCII (LCI Industries) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $2.33B, a trailing P/E of 11.52, a beta of 1.18 versus the broader market, a 52-week range of 84.33-159.66, average daily share volume of 389K, a public-listing history dating back to 1985, approximately 12K full-time employees. These structural characteristics shape how LCII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places LCII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.52 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LCII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on LCII?
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 LCII snapshot
As of June 26, 2026, spot at $95.12, ATM IV 40.10%, IV rank 6.44%, expected move 11.50%. The collar on LCII 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 17-day expiry.
Why this collar structure on LCII specifically: IV regime affects collar pricing on both sides; compressed LCII IV at 40.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.50% (roughly $10.94 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LCII expiries trade a higher absolute premium for lower per-day decay. Position sizing on LCII should anchor to the underlying notional of $95.12 per share and to the trader's directional view on LCII stock.
LCII collar setup
The LCII 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 LCII near $95.12, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LCII chain at a 17-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 LCII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $95.12 | long |
| Sell 1 | Call | $100.00 | $8.80 |
| Buy 1 | Put | $90.00 | $0.23 |
LCII collar risk and reward
- Net Premium / Debit
- -$8,655.00
- Max Profit (per contract)
- $1,345.00
- Max Loss (per contract)
- $345.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 3.899
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.
LCII collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LCII. 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% | +$345.00 |
| $21.04 | -77.9% | +$345.00 |
| $42.07 | -55.8% | +$345.00 |
| $63.10 | -33.7% | +$345.00 |
| $84.13 | -11.6% | +$345.00 |
| $105.16 | +10.6% | +$1,345.00 |
| $126.19 | +32.7% | +$1,345.00 |
| $147.22 | +54.8% | +$1,345.00 |
| $168.25 | +76.9% | +$1,345.00 |
| $189.28 | +99.0% | +$1,345.00 |
When traders use collar on LCII
Collars on LCII hedge an existing long LCII 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.
LCII thesis for this collar
The market-implied 1-standard-deviation range for LCII extends from approximately $84.18 on the downside to $106.06 on the upside. A LCII collar hedges an existing long LCII 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 LCII IV rank near 6.44% 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 LCII at 40.10%. As a Consumer Cyclical name, LCII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LCII-specific events.
LCII 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. LCII positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LCII alongside the broader basket even when LCII-specific fundamentals are unchanged. Always rebuild the position from current LCII chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LCII?
- A collar on LCII is the collar strategy applied to LCII (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 LCII stock trading near $95.12, the strikes shown on this page are snapped to the nearest listed LCII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LCII 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 LCII collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is $1,345.00 per contract and the computed maximum loss is $345.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LCII collar?
- The breakeven for the LCII 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 LCII market-implied 1-standard-deviation expected move is approximately 11.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LCII?
- Collars on LCII hedge an existing long LCII 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 LCII implied volatility affect this collar?
- LCII ATM IV is at 40.10% with IV rank near 6.44%, 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.