MHO Collar Strategy
MHO (M/I Homes, Inc.), in the Consumer Cyclical sector, (Residential Construction industry), listed on NYSE.
M/I Homes, Inc., together with its subsidiaries, operates as a builder of single-family homes in Ohio, Indiana, Illinois, Minnesota, Michigan, Florida, Texas, North Carolina, and Tennessee. The company operates through Northern Homebuilding, Southern Homebuilding, and Financial Services segments. It designs, constructs, markets, and sells single-family homes and attached townhomes to first-time, millennial, move-up, empty-nester, and luxury buyers under the M/I Homes brand name. The company also purchases undeveloped land to develop into developed lots for the construction of single-family homes, as well as for sale to others. In addition, it originates and sells mortgages; and serves as a title insurance agent by providing title insurance policies, examination, and closing services to purchasers of its homes. The company was formerly known as M/I Schottenstein Homes, Inc. and changed its name to M/I Homes, Inc. in January 2004.
MHO (M/I Homes, Inc.) trades in the Consumer Cyclical sector, specifically Residential Construction, with a market capitalization of approximately $3.27B, a trailing P/E of 9.19, a beta of 1.65 versus the broader market, a 52-week range of 103.52-158.92, average daily share volume of 244K, a public-listing history dating back to 1993, approximately 2K full-time employees. These structural characteristics shape how MHO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.65 indicates MHO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 9.19 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on MHO?
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 MHO snapshot
As of May 15, 2026, spot at $121.52, ATM IV 40.20%, IV rank 36.28%, expected move 11.53%. The collar on MHO 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 MHO specifically: IV regime affects collar pricing on both sides; mid-range MHO IV at 40.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.53% (roughly $14.01 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 MHO expiries trade a higher absolute premium for lower per-day decay. Position sizing on MHO should anchor to the underlying notional of $121.52 per share and to the trader's directional view on MHO stock.
MHO collar setup
The MHO 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 MHO near $121.52, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MHO 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 MHO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $121.52 | long |
| Sell 1 | Call | $130.00 | $3.50 |
| Buy 1 | Put | $115.00 | $3.05 |
MHO collar risk and reward
- Net Premium / Debit
- -$12,107.00
- Max Profit (per contract)
- $893.00
- Max Loss (per contract)
- -$607.00
- Breakeven(s)
- $121.07
- Risk / Reward Ratio
- 1.471
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.
MHO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MHO. 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% | -$607.00 |
| $26.88 | -77.9% | -$607.00 |
| $53.75 | -55.8% | -$607.00 |
| $80.61 | -33.7% | -$607.00 |
| $107.48 | -11.6% | -$607.00 |
| $134.35 | +10.6% | +$893.00 |
| $161.22 | +32.7% | +$893.00 |
| $188.08 | +54.8% | +$893.00 |
| $214.95 | +76.9% | +$893.00 |
| $241.82 | +99.0% | +$893.00 |
When traders use collar on MHO
Collars on MHO hedge an existing long MHO 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.
MHO thesis for this collar
The market-implied 1-standard-deviation range for MHO extends from approximately $107.51 on the downside to $135.53 on the upside. A MHO collar hedges an existing long MHO 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 MHO IV rank near 36.28% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MHO should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MHO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MHO-specific events.
MHO 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. MHO positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MHO alongside the broader basket even when MHO-specific fundamentals are unchanged. Always rebuild the position from current MHO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MHO?
- A collar on MHO is the collar strategy applied to MHO (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 MHO stock trading near $121.52, the strikes shown on this page are snapped to the nearest listed MHO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MHO 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 MHO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.20%), the computed maximum profit is $893.00 per contract and the computed maximum loss is -$607.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MHO collar?
- The breakeven for the MHO collar priced on this page is roughly $121.07 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 MHO market-implied 1-standard-deviation expected move is approximately 11.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MHO?
- Collars on MHO hedge an existing long MHO 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 MHO implied volatility affect this collar?
- MHO ATM IV is at 40.20% with IV rank near 36.28%, 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.