NEXN Collar Strategy
NEXN (Nexxen International Ltd.), in the Communication Services sector, (Advertising Agencies industry), listed on NASDAQ.
Nexxen International Ltd. provides end-to-end software platform that enables advertisers to reach relevant audiences and publishers. The company's demand side platform (DSP) offers full-service and self-managed marketplace access to advertisers and agencies to execute their digital marketing campaigns in real time across various ad formats. Its sell supply side platform (SSP) provides access to data and a comprehensive product suite to drive inventory management and revenue optimization. The company also offers data management platform solution, which integrates DSP and SSP solutions enabling advertisers and publishers to use data from various sources in order to optimize results of their advertising campaigns. It serves ad buyers, advertisers, brands, agencies, and digital publishers in Israel, the United States, the Asia-Pacific, Europe, the Middle East, and Africa. The company was formerly known as Tremor International Ltd and changed its name to Nexxen International Ltd. in January 2024.
NEXN (Nexxen International Ltd.) trades in the Communication Services sector, specifically Advertising Agencies, with a market capitalization of approximately $424.0M, a trailing P/E of 17.10, a beta of 1.43 versus the broader market, a 52-week range of 5.6-12.233, average daily share volume of 321K, a public-listing history dating back to 2021, approximately 854 full-time employees. These structural characteristics shape how NEXN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates NEXN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on NEXN?
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 NEXN snapshot
As of May 15, 2026, spot at $7.75, ATM IV 82.00%, IV rank 20.24%, expected move 23.51%. The collar on NEXN 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 NEXN specifically: IV regime affects collar pricing on both sides; compressed NEXN IV at 82.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 23.51% (roughly $1.82 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 NEXN expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEXN should anchor to the underlying notional of $7.75 per share and to the trader's directional view on NEXN stock.
NEXN collar setup
The NEXN 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 NEXN near $7.75, the first option leg uses a $8.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEXN 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 NEXN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.75 | long |
| Sell 1 | Call | $8.14 | N/A |
| Buy 1 | Put | $7.36 | N/A |
NEXN 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.
NEXN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NEXN. 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 NEXN
Collars on NEXN hedge an existing long NEXN 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.
NEXN thesis for this collar
The market-implied 1-standard-deviation range for NEXN extends from approximately $5.93 on the downside to $9.57 on the upside. A NEXN collar hedges an existing long NEXN 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 NEXN IV rank near 20.24% 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 NEXN at 82.00%. As a Communication Services name, NEXN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEXN-specific events.
NEXN 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. NEXN positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEXN alongside the broader basket even when NEXN-specific fundamentals are unchanged. Always rebuild the position from current NEXN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NEXN?
- A collar on NEXN is the collar strategy applied to NEXN (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 NEXN stock trading near $7.75, the strikes shown on this page are snapped to the nearest listed NEXN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEXN 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 NEXN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 82.00%), 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 NEXN collar?
- The breakeven for the NEXN 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 NEXN market-implied 1-standard-deviation expected move is approximately 23.51%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NEXN?
- Collars on NEXN hedge an existing long NEXN 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 NEXN implied volatility affect this collar?
- NEXN ATM IV is at 82.00% with IV rank near 20.24%, 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.