NDSN Collar Strategy
NDSN (Nordson Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids worldwide. It operates through two segments, Industrial Precision Solutions (IPS) and Advanced Technology Solutions (ATS). The IPS segment provides dispensing, coating, and laminating systems for adhesives, lotions, liquids, and fibers to disposable products and roll goods; automated adhesive dispensing systems used in packaged goods industries; components and systems used in the thermoplastic melt stream; and product assembly systems for use in paper and paperboard converting applications, and manufacturing roll goods, as well as for the assembly of plastic, metal, and wood products. It also offers automated and manual dispensing products and systems to apply adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints. The ATS segment provides automated dispensing systems for the attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces; precision manual and semi-automated dispensers, minimally invasive interventional delivery devices, plastic molded syringes, cartridges, tips, fluid connection components, tubing, balloons, and catheters; and bond testing and automated optical, acoustic microscopy, and x-ray inspection systems for use in semiconductor and printed circuit board industries. The company markets its products through direct sales force, as well as distributors and sales representatives.
NDSN (Nordson Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $15.56B, a trailing P/E of 29.74, a beta of 0.99 versus the broader market, a 52-week range of 191.99-305.28, average daily share volume of 358K, a public-listing history dating back to 1980, approximately 8K full-time employees. These structural characteristics shape how NDSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places NDSN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NDSN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NDSN?
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 NDSN snapshot
As of May 15, 2026, spot at $274.59, ATM IV 31.70%, IV rank 58.99%, expected move 9.09%. The collar on NDSN 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 NDSN specifically: IV regime affects collar pricing on both sides; mid-range NDSN IV at 31.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.09% (roughly $24.96 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 NDSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on NDSN should anchor to the underlying notional of $274.59 per share and to the trader's directional view on NDSN stock.
NDSN collar setup
The NDSN 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 NDSN near $274.59, the first option leg uses a $290.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NDSN 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 NDSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $274.59 | long |
| Sell 1 | Call | $290.00 | $4.20 |
| Buy 1 | Put | $260.00 | $5.20 |
NDSN collar risk and reward
- Net Premium / Debit
- -$27,559.00
- Max Profit (per contract)
- $1,441.00
- Max Loss (per contract)
- -$1,559.00
- Breakeven(s)
- $275.59
- Risk / Reward Ratio
- 0.924
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.
NDSN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NDSN. 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% | -$1,559.00 |
| $60.72 | -77.9% | -$1,559.00 |
| $121.43 | -55.8% | -$1,559.00 |
| $182.15 | -33.7% | -$1,559.00 |
| $242.86 | -11.6% | -$1,559.00 |
| $303.57 | +10.6% | +$1,441.00 |
| $364.28 | +32.7% | +$1,441.00 |
| $425.00 | +54.8% | +$1,441.00 |
| $485.71 | +76.9% | +$1,441.00 |
| $546.42 | +99.0% | +$1,441.00 |
When traders use collar on NDSN
Collars on NDSN hedge an existing long NDSN 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.
NDSN thesis for this collar
The market-implied 1-standard-deviation range for NDSN extends from approximately $249.63 on the downside to $299.55 on the upside. A NDSN collar hedges an existing long NDSN 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 NDSN IV rank near 58.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NDSN should anchor more to the directional view and the expected-move geometry. As a Industrials name, NDSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NDSN-specific events.
NDSN 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. NDSN positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NDSN alongside the broader basket even when NDSN-specific fundamentals are unchanged. Always rebuild the position from current NDSN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NDSN?
- A collar on NDSN is the collar strategy applied to NDSN (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 NDSN stock trading near $274.59, the strikes shown on this page are snapped to the nearest listed NDSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NDSN 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 NDSN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.70%), the computed maximum profit is $1,441.00 per contract and the computed maximum loss is -$1,559.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NDSN collar?
- The breakeven for the NDSN collar priced on this page is roughly $275.59 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 NDSN market-implied 1-standard-deviation expected move is approximately 9.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NDSN?
- Collars on NDSN hedge an existing long NDSN 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 NDSN implied volatility affect this collar?
- NDSN ATM IV is at 31.70% with IV rank near 58.99%, 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.