MOV Collar Strategy
MOV (Movado Group, Inc.), in the Consumer Cyclical sector, (Luxury Goods industry), listed on NYSE.
Movado Group, Inc. designs, sources, markets, and distributes watches worldwide. The company operates in two segments, Watch and Accessory Brands, and Company Stores. It offers its watches under the Movado, Concord, Ebel, Olivia Burton, and MVMT brands, as well as licensed brands, such as Coach, Tommy Hilfiger, HUGO BOSS, Lacoste, Calvin Klein, and Scuderia Ferrari. The company also provides after-sales and shipping services. Its customers include jewelry store chains, department stores, independent regional jewelers, network of independent distributors, online marketplaces, licensors' retail stores, and third-party e-commerce retailers. The company also sells directly to consumers through its e-commerce platforms.
MOV (Movado Group, Inc.) trades in the Consumer Cyclical sector, specifically Luxury Goods, with a market capitalization of approximately $422.7M, a trailing P/E of 23.35, a beta of 0.88 versus the broader market, a 52-week range of 14.71-29.24, average daily share volume of 144K, a public-listing history dating back to 1993, approximately 1K full-time employees. These structural characteristics shape how MOV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places MOV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MOV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on MOV?
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 MOV snapshot
As of May 15, 2026, spot at $26.91, ATM IV 47.30%, IV rank 24.70%, expected move 13.56%. The collar on MOV 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 MOV specifically: IV regime affects collar pricing on both sides; compressed MOV IV at 47.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.56% (roughly $3.65 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 MOV expiries trade a higher absolute premium for lower per-day decay. Position sizing on MOV should anchor to the underlying notional of $26.91 per share and to the trader's directional view on MOV stock.
MOV collar setup
The MOV 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 MOV near $26.91, the first option leg uses a $28.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MOV 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 MOV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.91 | long |
| Sell 1 | Call | $28.26 | N/A |
| Buy 1 | Put | $25.56 | N/A |
MOV 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.
MOV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MOV. 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 MOV
Collars on MOV hedge an existing long MOV 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.
MOV thesis for this collar
The market-implied 1-standard-deviation range for MOV extends from approximately $23.26 on the downside to $30.56 on the upside. A MOV collar hedges an existing long MOV 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 MOV IV rank near 24.70% 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 MOV at 47.30%. As a Consumer Cyclical name, MOV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MOV-specific events.
MOV 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. MOV positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MOV alongside the broader basket even when MOV-specific fundamentals are unchanged. Always rebuild the position from current MOV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MOV?
- A collar on MOV is the collar strategy applied to MOV (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 MOV stock trading near $26.91, the strikes shown on this page are snapped to the nearest listed MOV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MOV 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 MOV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 47.30%), 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 MOV collar?
- The breakeven for the MOV 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 MOV market-implied 1-standard-deviation expected move is approximately 13.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MOV?
- Collars on MOV hedge an existing long MOV 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 MOV implied volatility affect this collar?
- MOV ATM IV is at 47.30% with IV rank near 24.70%, 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.