MDB Collar Strategy
MDB (MongoDB, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
MongoDB, Inc. provides general purpose database platform worldwide. The company offers MongoDB Enterprise Advanced, a commercial database server for enterprise customers to run in the cloud, on-premise, or in a hybrid environment; MongoDB Atlas, a hosted multi-cloud database-as-a-service solution; and Community Server, a free-to-download version of its database, which includes the functionality that developers need to get started with MongoDB. It also provides professional services comprising consulting and training. The company was formerly known as 10gen, Inc. and changed its name to MongoDB, Inc. in August 2013. MongoDB, Inc. was incorporated in 2007 and is headquartered in New York, New York.
MDB (MongoDB, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $24.35B, a beta of 1.49 versus the broader market, a 52-week range of 182.43-444.72, average daily share volume of 1.9M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how MDB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.49 indicates MDB 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 MDB?
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 MDB snapshot
As of May 15, 2026, spot at $311.96, ATM IV 91.11%, IV rank 87.87%, expected move 26.12%. The collar on MDB 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 MDB specifically: IV regime affects collar pricing on both sides; elevated MDB IV at 91.11% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.12% (roughly $81.48 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 MDB expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDB should anchor to the underlying notional of $311.96 per share and to the trader's directional view on MDB stock.
MDB collar setup
The MDB 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 MDB near $311.96, the first option leg uses a $330.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDB 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 MDB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $311.96 | long |
| Sell 1 | Call | $330.00 | $25.55 |
| Buy 1 | Put | $295.00 | $22.60 |
MDB collar risk and reward
- Net Premium / Debit
- -$30,901.00
- Max Profit (per contract)
- $2,099.00
- Max Loss (per contract)
- -$1,401.00
- Breakeven(s)
- $309.01
- Risk / Reward Ratio
- 1.498
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.
MDB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MDB. 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% | -$1,401.00 |
| $68.98 | -77.9% | -$1,401.00 |
| $137.96 | -55.8% | -$1,401.00 |
| $206.93 | -33.7% | -$1,401.00 |
| $275.91 | -11.6% | -$1,401.00 |
| $344.88 | +10.6% | +$2,099.00 |
| $413.86 | +32.7% | +$2,099.00 |
| $482.83 | +54.8% | +$2,099.00 |
| $551.81 | +76.9% | +$2,099.00 |
| $620.78 | +99.0% | +$2,099.00 |
When traders use collar on MDB
Collars on MDB hedge an existing long MDB 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.
MDB thesis for this collar
The market-implied 1-standard-deviation range for MDB extends from approximately $230.48 on the downside to $393.44 on the upside. A MDB collar hedges an existing long MDB 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 MDB IV rank near 87.87% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MDB at 91.11%. As a Technology name, MDB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDB-specific events.
MDB 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. MDB positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MDB alongside the broader basket even when MDB-specific fundamentals are unchanged. Always rebuild the position from current MDB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MDB?
- A collar on MDB is the collar strategy applied to MDB (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 MDB stock trading near $311.96, the strikes shown on this page are snapped to the nearest listed MDB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MDB 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 MDB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.11%), the computed maximum profit is $2,099.00 per contract and the computed maximum loss is -$1,401.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MDB collar?
- The breakeven for the MDB collar priced on this page is roughly $309.01 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 MDB market-implied 1-standard-deviation expected move is approximately 26.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MDB?
- Collars on MDB hedge an existing long MDB 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 MDB implied volatility affect this collar?
- MDB ATM IV is at 91.11% with IV rank near 87.87%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.