LUNR Collar Strategy
LUNR (Intuitive Machines, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NASDAQ.
Intuitive Machines, Inc. manufactures and supplies space products and services. It offers space products and services to support sustained robotic and human exploration to the moon, mars, and beyond. It offers its products and services through business units: Lunar Access Services, Orbital Services, Lunar Data Services, and Space Products and Infrastructure. The company was founded in 2013 and is based in Houston, Texas.
LUNR (Intuitive Machines, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $5.69B, a beta of 1.47 versus the broader market, a 52-week range of 7.78-36.72, average daily share volume of 13.2M, a public-listing history dating back to 2021, approximately 435 full-time employees. These structural characteristics shape how LUNR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.47 indicates LUNR 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 LUNR?
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 LUNR snapshot
As of May 15, 2026, spot at $34.66, ATM IV 119.55%, IV rank 58.90%, expected move 34.27%. The collar on LUNR 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 28-day expiry.
Why this collar structure on LUNR specifically: IV regime affects collar pricing on both sides; mid-range LUNR IV at 119.55% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 34.27% (roughly $11.88 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LUNR expiries trade a higher absolute premium for lower per-day decay. Position sizing on LUNR should anchor to the underlying notional of $34.66 per share and to the trader's directional view on LUNR stock.
LUNR collar setup
The LUNR 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 LUNR near $34.66, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LUNR chain at a 28-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 LUNR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $34.66 | long |
| Sell 1 | Call | $36.00 | $4.10 |
| Buy 1 | Put | $33.00 | $3.29 |
LUNR collar risk and reward
- Net Premium / Debit
- -$3,385.00
- Max Profit (per contract)
- $215.00
- Max Loss (per contract)
- -$85.00
- Breakeven(s)
- $33.85
- Risk / Reward Ratio
- 2.529
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.
LUNR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LUNR. 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% | -$85.00 |
| $7.67 | -77.9% | -$85.00 |
| $15.33 | -55.8% | -$85.00 |
| $23.00 | -33.6% | -$85.00 |
| $30.66 | -11.5% | -$85.00 |
| $38.32 | +10.6% | +$215.00 |
| $45.98 | +32.7% | +$215.00 |
| $53.65 | +54.8% | +$215.00 |
| $61.31 | +76.9% | +$215.00 |
| $68.97 | +99.0% | +$215.00 |
When traders use collar on LUNR
Collars on LUNR hedge an existing long LUNR 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.
LUNR thesis for this collar
The market-implied 1-standard-deviation range for LUNR extends from approximately $22.78 on the downside to $46.54 on the upside. A LUNR collar hedges an existing long LUNR 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 LUNR IV rank near 58.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on LUNR should anchor more to the directional view and the expected-move geometry. As a Industrials name, LUNR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LUNR-specific events.
LUNR 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. LUNR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LUNR alongside the broader basket even when LUNR-specific fundamentals are unchanged. Always rebuild the position from current LUNR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LUNR?
- A collar on LUNR is the collar strategy applied to LUNR (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 LUNR stock trading near $34.66, the strikes shown on this page are snapped to the nearest listed LUNR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LUNR 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 LUNR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 119.55%), the computed maximum profit is $215.00 per contract and the computed maximum loss is -$85.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LUNR collar?
- The breakeven for the LUNR collar priced on this page is roughly $33.85 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 LUNR market-implied 1-standard-deviation expected move is approximately 34.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LUNR?
- Collars on LUNR hedge an existing long LUNR 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 LUNR implied volatility affect this collar?
- LUNR ATM IV is at 119.55% with IV rank near 58.90%, 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.