MOD Collar Strategy
MOD (Modine Manufacturing Company), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Modine Manufacturing Company specializes in delivering advanced thermal management systems and heat exchange components, primarily catering to original equipment manufacturers (OEMs) in both on- and off-highway vehicular markets. The company's operations are structured into two main segments: Climate Solutions and Performance Technologies. Its extensive product portfolio encompasses a wide array of heating, ventilation, and air conditioning (HVAC) solutions. This includes various heating units such as gas-fired, hydronic, electric, and oil-fired models, alongside indoor and outdoor duct furnaces, infrared units, and perimeter heating offerings like commercial fin-tube radiation, cabinet unit heaters, and convectors. Modine also supplies roof-mounted direct- and indirect-fired makeup air units, unit ventilators, single packaged vertical units, and precision air conditioning systems designed for data centers. Further HVAC offerings feature air handler units, fan walls, chillers, ceiling cassettes, hybrid fan coils, and diverse condensers and condensing units.
MOD (Modine Manufacturing Company) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $10.60B, a trailing P/E of 74.56, a beta of 1.71 versus the broader market, a 52-week range of 111.18-323.25, average daily share volume of 1.4M, a public-listing history dating back to 1982, approximately 13K full-time employees. These structural characteristics shape how MOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.71 indicates MOD 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 74.56 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. MOD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on MOD?
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.
MOD snapshot
As of August 14, 2026, spot at $208.81, ATM IV 66.40%, IV rank 36.80%, expected move 19.04%. The collar on MOD below is built from the August 14, 2026 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 MOD specifically: IV regime affects collar pricing on both sides; mid-range MOD IV at 66.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.04% (roughly $39.75 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 MOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOD should anchor to the underlying notional of $208.81 per share and to the trader's directional view on MOD stock.
MOD collar setup
The MOD collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With MOD at $208.81 on that close, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOD 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 MOD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $208.81 | long |
| Sell 1 | Call | $220.00 | $12.85 |
| Buy 1 | Put | $200.00 | $12.40 |
MOD collar risk and reward
- Net Premium / Debit
- -$20,836.00
- Max Profit (per contract)
- $1,164.00
- Max Loss (per contract)
- -$836.00
- Breakeven(s)
- $208.36
- Risk / Reward Ratio
- 1.392
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.
MOD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MOD. 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% | -$836.00 |
| $46.18 | -77.9% | -$836.00 |
| $92.35 | -55.8% | -$836.00 |
| $138.51 | -33.7% | -$836.00 |
| $184.68 | -11.6% | -$836.00 |
| $230.85 | +10.6% | +$1,164.00 |
| $277.02 | +32.7% | +$1,164.00 |
| $323.19 | +54.8% | +$1,164.00 |
| $369.35 | +76.9% | +$1,164.00 |
| $415.52 | +99.0% | +$1,164.00 |
When traders use collar on MOD
Collars on MOD hedge an existing long MOD 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.
MOD thesis for this collar
The market-implied 1-standard-deviation range for MOD extends from approximately $169.06 on the downside to $248.56 on the upside. A MOD collar hedges an existing long MOD 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 MOD IV rank near 36.80% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MOD should anchor more to the directional view and the expected-move geometry. As a Industrials name, MOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOD-specific events.
MOD 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. MOD positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MOD alongside the broader basket even when MOD-specific fundamentals are unchanged. Always rebuild the position from current MOD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MOD?
- A collar on MOD is the collar strategy applied to MOD (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 MOD stock at $208.81 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MOD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MOD 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 MOD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 66.40%), the computed maximum profit is $1,164.00 per contract and the computed maximum loss is -$836.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MOD collar?
- The breakeven for the MOD collar priced on this page is roughly $208.36 at expiration, derived from the August 14, 2026 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 MOD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MOD?
- Collars on MOD hedge an existing long MOD 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 MOD implied volatility affect this collar?
- MOD ATM IV is at 66.40% with IV rank near 36.80%, 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.