MSBI Collar Strategy
MSBI (Midland States Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Midland States Bancorp, Inc. operates as a financial holding company for Midland States Bank that provides various banking products and services to individuals, businesses, municipalities, and other entities. It operates through Banking, Wealth Management, and Other segments. The company accepts various deposits, such as checking, savings, money market, and sweep accounts, as well as certificates of deposits. It also offers term loans to purchase capital equipment; lines of credit for working capital and operational purposes; commercial real estate loans for owner occupied and non-owner occupied commercial property, as well as farmland loans; construction and land development loans developers of commercial real estate investment properties, residential developments, individual clients for construction of single family homes, as well as to construct owner-user properties; and residential real estate loans and home equity lines of credit.. In addition, the company provides consumer installment loans for the purchase of cars, boats, and other recreational vehicles, as well as for the purchase of major appliances and other home improvement projects; commercial equipment leasing; and trust and wealth management products and services, including financial and estate planning, trustee and custodial services, investment management, tax and insurance planning, business planning, corporate retirement plan consulting and administration, and retail brokerage services. As of December 31, 2021, it operated 52 full-service banking offices.
MSBI (Midland States Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $552.9M, a trailing P/E of 16.16, a beta of 0.65 versus the broader market, a 52-week range of 14.24-28.53, average daily share volume of 145K, a public-listing history dating back to 2016, approximately 907 full-time employees. These structural characteristics shape how MSBI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates MSBI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. MSBI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on MSBI?
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 MSBI snapshot
As of May 15, 2026, spot at $26.53, ATM IV 74.20%, IV rank 33.43%, expected move 21.27%. The collar on MSBI 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 MSBI specifically: IV regime affects collar pricing on both sides; mid-range MSBI IV at 74.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.27% (roughly $5.64 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 MSBI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSBI should anchor to the underlying notional of $26.53 per share and to the trader's directional view on MSBI stock.
MSBI collar setup
The MSBI 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 MSBI near $26.53, the first option leg uses a $27.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSBI 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 MSBI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.53 | long |
| Sell 1 | Call | $27.86 | N/A |
| Buy 1 | Put | $25.20 | N/A |
MSBI 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.
MSBI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MSBI. 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 MSBI
Collars on MSBI hedge an existing long MSBI 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.
MSBI thesis for this collar
The market-implied 1-standard-deviation range for MSBI extends from approximately $20.89 on the downside to $32.17 on the upside. A MSBI collar hedges an existing long MSBI 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 MSBI IV rank near 33.43% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MSBI should anchor more to the directional view and the expected-move geometry. As a Financial Services name, MSBI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSBI-specific events.
MSBI 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. MSBI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MSBI alongside the broader basket even when MSBI-specific fundamentals are unchanged. Always rebuild the position from current MSBI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MSBI?
- A collar on MSBI is the collar strategy applied to MSBI (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 MSBI stock trading near $26.53, the strikes shown on this page are snapped to the nearest listed MSBI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MSBI 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 MSBI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 74.20%), 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 MSBI collar?
- The breakeven for the MSBI 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 MSBI market-implied 1-standard-deviation expected move is approximately 21.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MSBI?
- Collars on MSBI hedge an existing long MSBI 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 MSBI implied volatility affect this collar?
- MSBI ATM IV is at 74.20% with IV rank near 33.43%, 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.