NAVI Collar Strategy
NAVI (Navient Corporation), in the Financial Services sector, (Financial - Credit Services industry), listed on NASDAQ.
Navient Corporation provides education loan management and business processing solutions for education, healthcare, and government clients at the federal, state, and local levels in the United States. It operates through three segments: Federal Education Loans, Consumer Lending, and Business Processing. The company owns Federal Family Education Loan Program (FFELP) loans that are insured or guaranteed by state or not-for-profit agencies; and performs servicing and asset recovery services on its own loan portfolio, as well as asset recovery services on FFELP loans owned by other institutions. It also owns, originates, acquires, and services refinance and in-school private education loans; and offers healthcare services that include revenue cycle outsourcing, accounts receivable management, extended business office support, consulting engagement, and public health programs, as well as business processing services to state governments, agencies, court systems, municipalities, and parking and tolling authorities. In addition, the company provides customizable solutions for its clients that include hospitals, hospital systems, medical centers, large physician groups, other healthcare providers, and public health departments; and corporate liquidity portfolio services. Navient Corporation was founded in 1973 and is headquartered in Wilmington, Delaware.
NAVI (Navient Corporation) trades in the Financial Services sector, specifically Financial - Credit Services, with a market capitalization of approximately $741.6M, a beta of 1.26 versus the broader market, a 52-week range of 7.802-16.07, average daily share volume of 1.0M, a public-listing history dating back to 2014, approximately 2K full-time employees. These structural characteristics shape how NAVI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places NAVI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NAVI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NAVI?
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 NAVI snapshot
As of May 15, 2026, spot at $8.18, ATM IV 49.80%, IV rank 12.28%, expected move 14.28%. The collar on NAVI 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 NAVI specifically: IV regime affects collar pricing on both sides; compressed NAVI IV at 49.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.28% (roughly $1.17 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 NAVI expiries trade a higher absolute premium for lower per-day decay. Position sizing on NAVI should anchor to the underlying notional of $8.18 per share and to the trader's directional view on NAVI stock.
NAVI collar setup
The NAVI 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 NAVI near $8.18, the first option leg uses a $8.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NAVI 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 NAVI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $8.18 | long |
| Sell 1 | Call | $8.59 | N/A |
| Buy 1 | Put | $7.77 | N/A |
NAVI 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.
NAVI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NAVI. 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 NAVI
Collars on NAVI hedge an existing long NAVI 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.
NAVI thesis for this collar
The market-implied 1-standard-deviation range for NAVI extends from approximately $7.01 on the downside to $9.35 on the upside. A NAVI collar hedges an existing long NAVI 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 NAVI IV rank near 12.28% 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 NAVI at 49.80%. As a Financial Services name, NAVI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NAVI-specific events.
NAVI 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. NAVI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NAVI alongside the broader basket even when NAVI-specific fundamentals are unchanged. Always rebuild the position from current NAVI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NAVI?
- A collar on NAVI is the collar strategy applied to NAVI (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 NAVI stock trading near $8.18, the strikes shown on this page are snapped to the nearest listed NAVI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NAVI 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 NAVI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.80%), 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 NAVI collar?
- The breakeven for the NAVI 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 NAVI market-implied 1-standard-deviation expected move is approximately 14.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NAVI?
- Collars on NAVI hedge an existing long NAVI 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 NAVI implied volatility affect this collar?
- NAVI ATM IV is at 49.80% with IV rank near 12.28%, 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.