NEXT Collar Strategy
NEXT (NextDecade Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.
NextDecade Corporation engages in the development activities related to the liquefaction and sale of liquefied natural gas (LNG); and capture and storage of CO2 emissions. The company focuses on the development activities on the Rio Grande LNG terminal facility located in the Port of Brownsville in southern Texas. It also focuses on a carbon capture and storage project (CCS project) at the terminal, as well as on other CCS projects with third-party industrial source facilities. The company was founded in 2010 is based in Houston, Texas.
NEXT (NextDecade Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $2.26B, a beta of 1.65 versus the broader market, a 52-week range of 4.75-12.12, average daily share volume of 4.8M, a public-listing history dating back to 2015, approximately 237 full-time employees. These structural characteristics shape how NEXT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.65 indicates NEXT 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 NEXT?
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 NEXT snapshot
As of May 15, 2026, spot at $9.10, ATM IV 66.80%, IV rank 49.73%, expected move 19.15%. The collar on NEXT 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 NEXT specifically: IV regime affects collar pricing on both sides; mid-range NEXT IV at 66.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.15% (roughly $1.74 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 NEXT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NEXT should anchor to the underlying notional of $9.10 per share and to the trader's directional view on NEXT stock.
NEXT collar setup
The NEXT 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 NEXT near $9.10, the first option leg uses a $9.56 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NEXT 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 NEXT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.10 | long |
| Sell 1 | Call | $9.56 | N/A |
| Buy 1 | Put | $8.65 | N/A |
NEXT 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.
NEXT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NEXT. 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 NEXT
Collars on NEXT hedge an existing long NEXT 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.
NEXT thesis for this collar
The market-implied 1-standard-deviation range for NEXT extends from approximately $7.36 on the downside to $10.84 on the upside. A NEXT collar hedges an existing long NEXT 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 NEXT IV rank near 49.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NEXT should anchor more to the directional view and the expected-move geometry. As a Energy name, NEXT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NEXT-specific events.
NEXT 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. NEXT positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NEXT alongside the broader basket even when NEXT-specific fundamentals are unchanged. Always rebuild the position from current NEXT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NEXT?
- A collar on NEXT is the collar strategy applied to NEXT (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 NEXT stock trading near $9.10, the strikes shown on this page are snapped to the nearest listed NEXT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NEXT 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 NEXT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 66.80%), 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 NEXT collar?
- The breakeven for the NEXT 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 NEXT market-implied 1-standard-deviation expected move is approximately 19.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NEXT?
- Collars on NEXT hedge an existing long NEXT 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 NEXT implied volatility affect this collar?
- NEXT ATM IV is at 66.80% with IV rank near 49.73%, 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.