MUSA Collar Strategy
MUSA (Murphy USA Inc.), in the Consumer Cyclical sector, (Specialty Retail industry), listed on NYSE.
Murphy USA Inc. engages in marketing of retail motor fuel products and convenience merchandise. The company operates retail stores under the Murphy USA, Murphy Express, and QuickChek brands. As of December 31, 2021, it operated 1,679 retail gasoline stores principally in the Southeast, Southwest, and Midwest United States. The company was founded in 1996 and is headquartered in El Dorado, Arkansas.
MUSA (Murphy USA Inc.) trades in the Consumer Cyclical sector, specifically Specialty Retail, with a market capitalization of approximately $10.87B, a trailing P/E of 19.69, a beta of 0.36 versus the broader market, a 52-week range of 345.23-609.82, average daily share volume of 363K, a public-listing history dating back to 2013, approximately 6K full-time employees. These structural characteristics shape how MUSA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.36 indicates MUSA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. MUSA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on MUSA?
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 MUSA snapshot
As of May 15, 2026, spot at $565.63, ATM IV 37.20%, IV rank 43.60%, expected move 10.66%. The collar on MUSA 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 MUSA specifically: IV regime affects collar pricing on both sides; mid-range MUSA IV at 37.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.66% (roughly $60.32 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 MUSA expiries trade a higher absolute premium for lower per-day decay. Position sizing on MUSA should anchor to the underlying notional of $565.63 per share and to the trader's directional view on MUSA stock.
MUSA collar setup
The MUSA 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 MUSA near $565.63, the first option leg uses a $590.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MUSA 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 MUSA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $565.63 | long |
| Sell 1 | Call | $590.00 | $15.05 |
| Buy 1 | Put | $540.00 | $15.15 |
MUSA collar risk and reward
- Net Premium / Debit
- -$56,573.00
- Max Profit (per contract)
- $2,427.00
- Max Loss (per contract)
- -$2,573.00
- Breakeven(s)
- $565.73
- Risk / Reward Ratio
- 0.943
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.
MUSA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MUSA. 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% | -$2,573.00 |
| $125.07 | -77.9% | -$2,573.00 |
| $250.14 | -55.8% | -$2,573.00 |
| $375.20 | -33.7% | -$2,573.00 |
| $500.26 | -11.6% | -$2,573.00 |
| $625.32 | +10.6% | +$2,427.00 |
| $750.39 | +32.7% | +$2,427.00 |
| $875.45 | +54.8% | +$2,427.00 |
| $1,000.51 | +76.9% | +$2,427.00 |
| $1,125.58 | +99.0% | +$2,427.00 |
When traders use collar on MUSA
Collars on MUSA hedge an existing long MUSA 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.
MUSA thesis for this collar
The market-implied 1-standard-deviation range for MUSA extends from approximately $505.31 on the downside to $625.95 on the upside. A MUSA collar hedges an existing long MUSA 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 MUSA IV rank near 43.60% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MUSA should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, MUSA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MUSA-specific events.
MUSA 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. MUSA positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MUSA alongside the broader basket even when MUSA-specific fundamentals are unchanged. Always rebuild the position from current MUSA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MUSA?
- A collar on MUSA is the collar strategy applied to MUSA (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 MUSA stock trading near $565.63, the strikes shown on this page are snapped to the nearest listed MUSA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MUSA 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 MUSA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.20%), the computed maximum profit is $2,427.00 per contract and the computed maximum loss is -$2,573.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MUSA collar?
- The breakeven for the MUSA collar priced on this page is roughly $565.73 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 MUSA market-implied 1-standard-deviation expected move is approximately 10.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MUSA?
- Collars on MUSA hedge an existing long MUSA 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 MUSA implied volatility affect this collar?
- MUSA ATM IV is at 37.20% with IV rank near 43.60%, 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.