LYTS Collar Strategy
LYTS (LSI Industries Inc.), in the Industrials sector, (Electrical Equipment & Parts industry), listed on NASDAQ.
LSI Industries Inc. provides non-residential lighting and retail display solutions to customers across the United States, Canada, Mexico, Australia, and Latin America. The company's operations are organized into two key segments: Lighting and Display Solutions. The Lighting segment is responsible for the manufacturing, marketing, and sale of illumination products for commercial and institutional outdoor and indoor environments. This division also furnishes sophisticated lighting control systems, including sensors, photocontrols, dimmers, motion detection, and Bluetooth integration. Furthermore, it designs, engineers, and produces electronic circuit boards, assemblies, and sub-assemblies. The Display Solutions segment specializes in the creation, sale, and installation of exterior and interior visual branding and merchandising elements.
LYTS (LSI Industries Inc.) trades in the Industrials sector, specifically Electrical Equipment & Parts, with a market capitalization of approximately $889.5M, a trailing P/E of 32.00, a beta of 0.54 versus the broader market, a 52-week range of 17.21-27.36, average daily share volume of 412K, a public-listing history dating back to 1985, approximately 2K full-time employees. These structural characteristics shape how LYTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates LYTS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LYTS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on LYTS?
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.
LYTS snapshot
As of August 14, 2026, spot at $24.74, ATM IV 69.10%, IV rank 16.52%, expected move 19.81%. The collar on LYTS below is built from the 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 LYTS specifically: IV regime affects collar pricing on both sides; compressed LYTS IV at 69.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.81% (roughly $4.90 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 LYTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on LYTS should anchor to the underlying notional of $24.74 per share and to the trader's directional view on LYTS stock.
LYTS collar setup
The LYTS 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 LYTS at $24.74 on that close, the first option leg uses a $25.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LYTS 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 LYTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $24.74 | long |
| Sell 1 | Call | $25.98 | N/A |
| Buy 1 | Put | $23.50 | N/A |
LYTS 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.
LYTS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LYTS. 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 LYTS
Collars on LYTS hedge an existing long LYTS 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.
LYTS thesis for this collar
The market-implied 1-standard-deviation range for LYTS extends from approximately $19.84 on the downside to $29.64 on the upside. A LYTS collar hedges an existing long LYTS 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 LYTS IV rank near 16.52% 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 LYTS at 69.10%. As a Industrials name, LYTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LYTS-specific events.
LYTS 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. LYTS positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LYTS alongside the broader basket even when LYTS-specific fundamentals are unchanged. Always rebuild the position from current LYTS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LYTS?
- A collar on LYTS is the collar strategy applied to LYTS (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 LYTS stock at $24.74 on the most recent close, the strikes shown on this page are snapped to the nearest listed LYTS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LYTS 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 LYTS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 69.10%), 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 LYTS collar?
- The breakeven for the LYTS collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The LYTS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LYTS?
- Collars on LYTS hedge an existing long LYTS 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 LYTS implied volatility affect this collar?
- LYTS ATM IV is at 69.10% with IV rank near 16.52%, 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.