LPRO Collar Strategy
LPRO (Open Lending Corporation), in the Financial Services sector, (Financial - Credit Services industry), listed on NASDAQ.
Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, and non-bank auto finance companies and captive finance companies of original equipment manufacturers in the United States. It offers Lenders Protection Program (LPP), which is a Software as a Service platform that facilitates loan decision making and automated underwriting by third-party lenders and the issuance of credit default insurance through third-party insurance providers. The company's LPP products include loan analytics, risk-based loan pricing, risk modeling, and automated decision technology for automotive lenders. Open Lending Corporation was founded in 2000 and is based in Austin, Texas.
LPRO (Open Lending Corporation) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $218.7M, a beta of 2.20 versus the broader market, a 52-week range of 1.175-2.7, average daily share volume of 623K, a public-listing history dating back to 2018, approximately 205 full-time employees. These structural characteristics shape how LPRO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.20 indicates LPRO 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 LPRO?
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 LPRO snapshot
As of May 14, 2026, spot at $1.81, ATM IV 23.00%, IV rank 0.52%, expected move 6.59%. The collar on LPRO 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 LPRO specifically: IV regime affects collar pricing on both sides; compressed LPRO IV at 23.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.59% (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 LPRO expiries trade a higher absolute premium for lower per-day decay. Position sizing on LPRO should anchor to the underlying notional of $1.81 per share and to the trader's directional view on LPRO stock.
LPRO collar setup
The LPRO 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 LPRO near $1.81, the first option leg uses a $1.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LPRO 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 LPRO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.81 | long |
| Sell 1 | Call | $1.90 | N/A |
| Buy 1 | Put | $1.72 | N/A |
LPRO 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.
LPRO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LPRO. 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 LPRO
Collars on LPRO hedge an existing long LPRO 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.
LPRO thesis for this collar
The market-implied 1-standard-deviation range for LPRO extends from approximately $1.69 on the downside to $1.93 on the upside. A LPRO collar hedges an existing long LPRO 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 LPRO IV rank near 0.52% 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 LPRO at 23.00%. As a Financial Services name, LPRO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LPRO-specific events.
LPRO 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. LPRO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LPRO alongside the broader basket even when LPRO-specific fundamentals are unchanged. Always rebuild the position from current LPRO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LPRO?
- A collar on LPRO is the collar strategy applied to LPRO (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 LPRO stock trading near $1.81, the strikes shown on this page are snapped to the nearest listed LPRO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LPRO 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 LPRO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.00%), 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 LPRO collar?
- The breakeven for the LPRO 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 LPRO market-implied 1-standard-deviation expected move is approximately 6.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LPRO?
- Collars on LPRO hedge an existing long LPRO 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 LPRO implied volatility affect this collar?
- LPRO ATM IV is at 23.00% with IV rank near 0.52%, 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.