NFG Collar Strategy
NFG (National Fuel Gas Company), in the Energy sector, (Oil & Gas Integrated industry), listed on NYSE.
National Fuel Gas Company operates as a diversified energy company. It operates through four segments: Exploration and Production, Pipeline and Storage, Gathering, and Utility. The Exploration and Production segment explores for, develops, and produces natural gas and oil in California and in the Appalachian region of the United States. As of September 30, 2021, it had proved developed and undeveloped reserves of 21,537 thousand barrels of oil and 3,723,433 million cubic feet of natural gas. The Pipeline and Storage segment provides interstate natural gas transportation and storage services through an integrated gas pipeline system in Pennsylvania and New York; and owns and operates underground natural gas storage fields. This segment also transports natural gas for National Fuel Gas Distribution Corporation, as well as for other utilities, industrial companies, and power producers in New York State; and owns and operates the Empire Pipeline.
NFG (National Fuel Gas Company) trades in the Energy sector, specifically Oil & Gas Integrated, with a market capitalization of approximately $7.67B, a trailing P/E of 11.17, a beta of 0.42 versus the broader market, a 52-week range of 77.22-97.06, average daily share volume of 789K, a public-listing history dating back to 1973, approximately 2K full-time employees. These structural characteristics shape how NFG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates NFG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.17 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. NFG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NFG?
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 NFG snapshot
As of May 15, 2026, spot at $81.33, ATM IV 24.60%, IV rank 4.79%, expected move 7.05%. The collar on NFG 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 NFG specifically: IV regime affects collar pricing on both sides; compressed NFG IV at 24.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.05% (roughly $5.74 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 NFG expiries trade a higher absolute premium for lower per-day decay. Position sizing on NFG should anchor to the underlying notional of $81.33 per share and to the trader's directional view on NFG stock.
NFG collar setup
The NFG 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 NFG near $81.33, the first option leg uses a $85.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NFG 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 NFG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $81.33 | long |
| Sell 1 | Call | $85.40 | N/A |
| Buy 1 | Put | $77.26 | N/A |
NFG 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.
NFG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NFG. 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 NFG
Collars on NFG hedge an existing long NFG 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.
NFG thesis for this collar
The market-implied 1-standard-deviation range for NFG extends from approximately $75.59 on the downside to $87.07 on the upside. A NFG collar hedges an existing long NFG 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 NFG IV rank near 4.79% 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 NFG at 24.60%. As a Energy name, NFG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NFG-specific events.
NFG 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. NFG positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NFG alongside the broader basket even when NFG-specific fundamentals are unchanged. Always rebuild the position from current NFG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NFG?
- A collar on NFG is the collar strategy applied to NFG (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 NFG stock trading near $81.33, the strikes shown on this page are snapped to the nearest listed NFG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NFG 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 NFG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.60%), 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 NFG collar?
- The breakeven for the NFG 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 NFG market-implied 1-standard-deviation expected move is approximately 7.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NFG?
- Collars on NFG hedge an existing long NFG 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 NFG implied volatility affect this collar?
- NFG ATM IV is at 24.60% with IV rank near 4.79%, 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.