LCNB Collar Strategy
LCNB (LCNB Corp.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
LCNB Corp. functions as the parent entity of LCNB National Bank, delivering comprehensive banking solutions across Ohio. The bank offers a variety of deposit options, such as checking, demand, savings, NOW, and money market accounts, alongside certificates of deposit. Its lending portfolio is extensive, covering commercial and industrial financing, real estate loans for both commercial and residential properties, agricultural loans, construction financing, and Small Business Administration (SBA) loans. Residential mortgage options are also available, encompassing loans for home purchases or refinancing, home equity lines of credit, and other consumer or commercial loans secured by residential real estate. Additionally, the institution provides various consumer credit facilities, including those for vehicles (automobiles, RVs, boats), home improvements, and personal needs. Beyond traditional banking, LCNB Corp. extends its services to include trust administration, estate settlement, and fiduciary responsibilities.
LCNB (LCNB Corp.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $263.8M, a trailing P/E of 11.40, a beta of 0.59 versus the broader market, a 52-week range of 14.11-18.52, average daily share volume of 27K, a public-listing history dating back to 1999, approximately 346 full-time employees. These structural characteristics shape how LCNB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates LCNB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.40 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LCNB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on LCNB?
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 LCNB snapshot
As of June 26, 2026, spot at $17.50, ATM IV 90.00%, IV rank 24.47%, expected move 25.80%. The collar on LCNB 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 21-day expiry.
Why this collar structure on LCNB specifically: IV regime affects collar pricing on both sides; compressed LCNB IV at 90.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.80% (roughly $4.52 on the underlying). The 21-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LCNB expiries trade a higher absolute premium for lower per-day decay. Position sizing on LCNB should anchor to the underlying notional of $17.50 per share and to the trader's directional view on LCNB stock.
LCNB collar setup
The LCNB 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 LCNB near $17.50, the first option leg uses a $18.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LCNB chain at a 21-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 LCNB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.50 | long |
| Sell 1 | Call | $18.38 | N/A |
| Buy 1 | Put | $16.63 | N/A |
LCNB 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.
LCNB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LCNB. 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 LCNB
Collars on LCNB hedge an existing long LCNB 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.
LCNB thesis for this collar
The market-implied 1-standard-deviation range for LCNB extends from approximately $12.98 on the downside to $22.02 on the upside. A LCNB collar hedges an existing long LCNB 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 LCNB IV rank near 24.47% 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 LCNB at 90.00%. As a Financial Services name, LCNB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LCNB-specific events.
LCNB 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. LCNB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LCNB alongside the broader basket even when LCNB-specific fundamentals are unchanged. Always rebuild the position from current LCNB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LCNB?
- A collar on LCNB is the collar strategy applied to LCNB (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 LCNB stock trading near $17.50, the strikes shown on this page are snapped to the nearest listed LCNB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LCNB 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 LCNB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 90.00%), 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 LCNB collar?
- The breakeven for the LCNB 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 LCNB market-implied 1-standard-deviation expected move is approximately 25.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LCNB?
- Collars on LCNB hedge an existing long LCNB 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 LCNB implied volatility affect this collar?
- LCNB ATM IV is at 90.00% with IV rank near 24.47%, 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.