MSI Collar Strategy
MSI (Motorola Solutions, Inc.), in the Technology sector, (Communication Equipment industry), listed on NYSE.
Motorola Solutions, Inc. delivers essential communication and data analysis capabilities vital for critical operations across the United States, the United Kingdom, Canada, and other international markets. The company structures its extensive operations into two primary segments: Products and Systems Integration, and Software and Services. The Products and Systems Integration division offers a comprehensive suite of infrastructure, various devices, accessories, and video security solutions, alongside expert services for the deployment and seamless integration of systems, hardware, software, and specialized applications. This segment caters to governmental bodies, public safety agencies, and commercial enterprises that rely on private communication networks, advanced video security systems, and robust tools for managing mobile workforces. Their product portfolio spans land mobile radio (LMR) communication equipment, such as portable and vehicle-mounted two-way radios, as well as video security and access control hardware, including fixed and mobile cameras. It also encompasses core radio network software and central processing systems, base stations, consoles, and repeaters, in addition to sophisticated video analytics, network video management hardware and software, and access control solutions.
MSI (Motorola Solutions, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $77.44B, a trailing P/E of 36.25, a beta of 0.87 versus the broader market, a 52-week range of 359.36-493.57, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 23K full-time employees. These structural characteristics shape how MSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.87 places MSI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 36.25 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. MSI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on MSI?
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.
MSI snapshot
As of August 14, 2026, spot at $466.48, ATM IV 20.90%, IV rank 15.65%, expected move 5.99%. The collar on MSI 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 MSI specifically: IV regime affects collar pricing on both sides; compressed MSI IV at 20.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.99% (roughly $27.95 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 MSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MSI should anchor to the underlying notional of $466.48 per share and to the trader's directional view on MSI stock.
MSI collar setup
The MSI 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 MSI at $466.48 on that close, the first option leg uses a $490.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MSI 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 MSI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $466.48 | long |
| Sell 1 | Call | $490.00 | $3.80 |
| Buy 1 | Put | $440.00 | $3.38 |
MSI collar risk and reward
- Net Premium / Debit
- -$46,605.50
- Max Profit (per contract)
- $2,394.50
- Max Loss (per contract)
- -$2,605.50
- Breakeven(s)
- $466.06
- Risk / Reward Ratio
- 0.919
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.
MSI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MSI. 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% | -$2,605.50 |
| $103.15 | -77.9% | -$2,605.50 |
| $206.29 | -55.8% | -$2,605.50 |
| $309.43 | -33.7% | -$2,605.50 |
| $412.57 | -11.6% | -$2,605.50 |
| $515.71 | +10.6% | +$2,394.50 |
| $618.85 | +32.7% | +$2,394.50 |
| $721.99 | +54.8% | +$2,394.50 |
| $825.13 | +76.9% | +$2,394.50 |
| $928.27 | +99.0% | +$2,394.50 |
When traders use collar on MSI
Collars on MSI hedge an existing long MSI 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.
MSI thesis for this collar
The market-implied 1-standard-deviation range for MSI extends from approximately $438.53 on the downside to $494.43 on the upside. A MSI collar hedges an existing long MSI 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 MSI IV rank near 15.65% 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 MSI at 20.90%. As a Technology name, MSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MSI-specific events.
MSI 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. MSI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MSI alongside the broader basket even when MSI-specific fundamentals are unchanged. Always rebuild the position from current MSI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MSI?
- A collar on MSI is the collar strategy applied to MSI (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 MSI stock at $466.48 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed MSI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are MSI 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 MSI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 20.90%), the computed maximum profit is $2,394.50 per contract and the computed maximum loss is -$2,605.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MSI collar?
- The breakeven for the MSI collar priced on this page is roughly $466.06 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 MSI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MSI?
- Collars on MSI hedge an existing long MSI 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 MSI implied volatility affect this collar?
- MSI ATM IV is at 20.90% with IV rank near 15.65%, 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.