MAMA Collar Strategy
MAMA (Mama's Creations, Inc.), in the Consumer Defensive sector, (Packaged Foods industry), listed on NASDAQ.
Mama's Creations, Inc. manufactures and markets prepared refrigerated foods primarily in the United States. The company offers beef and turkey meatballs, meat loaf, chicken, sausage-related products, and pasta entrees; and hot bars, salad bars, prepared foods, sandwich, and cold deli and foods-to-go sections. It sells its products directly to supermarkets, club chains, and mass-market retailers; and food retailers and distributors, as well as through website. The company was formerly known as MamaMancini's Holdings, Inc. and changed its name to Mama's Creations, Inc. in August 2023. Mama's Creations, Inc. was founded in 2010 and is headquartered in East Rutherford, New Jersey.
MAMA (Mama's Creations, Inc.) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $555.8M, a trailing P/E of 100.60, a beta of 0.64 versus the broader market, a 52-week range of 6.5-17.85, average daily share volume of 424K, a public-listing history dating back to 2021, approximately 305 full-time employees. These structural characteristics shape how MAMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.64 indicates MAMA 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 100.60 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on MAMA?
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 MAMA snapshot
As of May 15, 2026, spot at $14.30, ATM IV 62.20%, IV rank 15.69%, expected move 17.83%. The collar on MAMA 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 34-day expiry.
Why this collar structure on MAMA specifically: IV regime affects collar pricing on both sides; compressed MAMA IV at 62.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.83% (roughly $2.55 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MAMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on MAMA should anchor to the underlying notional of $14.30 per share and to the trader's directional view on MAMA stock.
MAMA collar setup
The MAMA 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 MAMA near $14.30, the first option leg uses a $15.02 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MAMA chain at a 34-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 MAMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.30 | long |
| Sell 1 | Call | $15.02 | N/A |
| Buy 1 | Put | $13.59 | N/A |
MAMA 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.
MAMA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MAMA. 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 MAMA
Collars on MAMA hedge an existing long MAMA 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.
MAMA thesis for this collar
The market-implied 1-standard-deviation range for MAMA extends from approximately $11.75 on the downside to $16.85 on the upside. A MAMA collar hedges an existing long MAMA 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 MAMA IV rank near 15.69% 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 MAMA at 62.20%. As a Consumer Defensive name, MAMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MAMA-specific events.
MAMA 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. MAMA positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MAMA alongside the broader basket even when MAMA-specific fundamentals are unchanged. Always rebuild the position from current MAMA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MAMA?
- A collar on MAMA is the collar strategy applied to MAMA (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 MAMA stock trading near $14.30, the strikes shown on this page are snapped to the nearest listed MAMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MAMA 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 MAMA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 62.20%), 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 MAMA collar?
- The breakeven for the MAMA 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 MAMA market-implied 1-standard-deviation expected move is approximately 17.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MAMA?
- Collars on MAMA hedge an existing long MAMA 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 MAMA implied volatility affect this collar?
- MAMA ATM IV is at 62.20% with IV rank near 15.69%, 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.