LOOP Collar Strategy
LOOP (Loop Industries, Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.
LOOP (Loop Industries, Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $69.6M, a beta of 1.44 versus the broader market, a 52-week range of 0.853-2.29, average daily share volume of 71K, a public-listing history dating back to 2017, approximately 50 full-time employees. These structural characteristics shape how LOOP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.44 indicates LOOP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on LOOP?
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 LOOP snapshot
As of May 14, 2026, spot at $1.45, ATM IV 27.70%, IV rank 2.10%, expected move 7.94%. The collar on LOOP 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 35-day expiry.
Why this collar structure on LOOP specifically: IV regime affects collar pricing on both sides; compressed LOOP IV at 27.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.94% (roughly $0.12 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LOOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOOP should anchor to the underlying notional of $1.45 per share and to the trader's directional view on LOOP stock.
LOOP collar setup
The LOOP 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 LOOP near $1.45, the first option leg uses a $1.52 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOOP chain at a 35-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 LOOP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.45 | long |
| Sell 1 | Call | $1.52 | N/A |
| Buy 1 | Put | $1.38 | N/A |
LOOP 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.
LOOP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LOOP. 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 LOOP
Collars on LOOP hedge an existing long LOOP 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.
LOOP thesis for this collar
The market-implied 1-standard-deviation range for LOOP extends from approximately $1.33 on the downside to $1.57 on the upside. A LOOP collar hedges an existing long LOOP 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 LOOP IV rank near 2.10% 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 LOOP at 27.70%. As a Basic Materials name, LOOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOOP-specific events.
LOOP 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. LOOP positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LOOP alongside the broader basket even when LOOP-specific fundamentals are unchanged. Always rebuild the position from current LOOP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LOOP?
- A collar on LOOP is the collar strategy applied to LOOP (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 LOOP stock trading near $1.45, the strikes shown on this page are snapped to the nearest listed LOOP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LOOP 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 LOOP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 27.70%), 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 LOOP collar?
- The breakeven for the LOOP 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 LOOP market-implied 1-standard-deviation expected move is approximately 7.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LOOP?
- Collars on LOOP hedge an existing long LOOP 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 LOOP implied volatility affect this collar?
- LOOP ATM IV is at 27.70% with IV rank near 2.10%, 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.