NEXA Collar Strategy
NEXA (Nexa Resources S.A.), in the Basic Materials sector, (Industrial Materials industry), listed on NYSE.
Nexa Resources S.A., together with its subsidiaries, engages in the zinc mining and smelting business. The company also produces zinc, silver, gold, copper cement, lead, sulfuric acid, sulfur dioxide, copper sulfate, and limestone deposits. It owns and operates five underground polymetallic mines, including three located in the Central Andes of Peru; and two located in the State of Minas Gerais in Brazil. The company also develops the Aripuanã project located in Mato Grosso, Brazil. It exports its products. The company was formerly known as VM Holding S.A. and changed its name to Nexa Resources S.A. in September 2017.
NEXA (Nexa Resources S.A.) trades in the Basic Materials sector, specifically Industrial Materials, with a market capitalization of approximately $1.96B, a trailing P/E of 14.75, a beta of 0.88 versus the broader market, a 52-week range of 4.438-16.89, average daily share volume of 1.2M, a public-listing history dating back to 2017, approximately 6K full-time employees. These structural characteristics shape how NEXA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places NEXA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NEXA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NEXA?
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 NEXA snapshot
As of May 15, 2026, spot at $14.63, ATM IV 73.40%, IV rank 16.58%, expected move 21.04%. The collar on NEXA 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 NEXA specifically: IV regime affects collar pricing on both sides; compressed NEXA IV at 73.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.04% (roughly $3.08 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 NEXA expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEXA should anchor to the underlying notional of $14.63 per share and to the trader's directional view on NEXA stock.
NEXA collar setup
The NEXA 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 NEXA near $14.63, the first option leg uses a $15.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEXA 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 NEXA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.63 | long |
| Sell 1 | Call | $15.36 | N/A |
| Buy 1 | Put | $13.90 | N/A |
NEXA 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.
NEXA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NEXA. 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 NEXA
Collars on NEXA hedge an existing long NEXA 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.
NEXA thesis for this collar
The market-implied 1-standard-deviation range for NEXA extends from approximately $11.55 on the downside to $17.71 on the upside. A NEXA collar hedges an existing long NEXA 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 NEXA IV rank near 16.58% 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 NEXA at 73.40%. As a Basic Materials name, NEXA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEXA-specific events.
NEXA 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. NEXA positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEXA alongside the broader basket even when NEXA-specific fundamentals are unchanged. Always rebuild the position from current NEXA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NEXA?
- A collar on NEXA is the collar strategy applied to NEXA (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 NEXA stock trading near $14.63, the strikes shown on this page are snapped to the nearest listed NEXA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEXA 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 NEXA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 73.40%), 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 NEXA collar?
- The breakeven for the NEXA 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 NEXA market-implied 1-standard-deviation expected move is approximately 21.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NEXA?
- Collars on NEXA hedge an existing long NEXA 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 NEXA implied volatility affect this collar?
- NEXA ATM IV is at 73.40% with IV rank near 16.58%, 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.