NLOP Collar Strategy
NLOP (Net Lease Office Properties), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Net Lease Office Properties (NYSE: NLOP) is a publicly traded real estate investment trust with a portfolio of 59 high-quality office properties, totaling approximately 8.7 million leasable square feet primarily leased to corporate tenants on a single-tenant net lease basis. The vast majority of the office properties owned by NLOP are located in the U.S., with the balance in Europe. The portfolio consists of 62 corporate tenants operating in a variety of industries, generating annualized based rent (ABR) of approximately $145 million. NLOP's business plan is to focus on realizing value for its shareholders primarily through strategic asset management and disposition of its property portfolio over time. Given WPC's extensive knowledge of the portfolio, NLOP is externally managed and advised by wholly owned affiliates of WPC to successfully execute on its business strategy. Over the course of its 50-year history, WPC has developed significant expertise in the single-tenant office real estate sector, including the operation, leasing, acquisition and development of assets through many market cycles, and has a proven track record of execution.
NLOP (Net Lease Office Properties) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $175.8M, a beta of 1.00 versus the broader market, a 52-week range of 11.235-34.53, average daily share volume of 246K, a public-listing history dating back to 2023, approximately 197 full-time employees. These structural characteristics shape how NLOP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places NLOP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. NLOP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NLOP?
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 NLOP snapshot
As of May 15, 2026, spot at $11.43, ATM IV 78.20%, IV rank 16.33%, expected move 22.42%. The collar on NLOP 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 NLOP specifically: IV regime affects collar pricing on both sides; compressed NLOP IV at 78.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.42% (roughly $2.56 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 NLOP expiries trade a higher absolute premium for lower per-day decay. Position sizing on NLOP should anchor to the underlying notional of $11.43 per share and to the trader's directional view on NLOP stock.
NLOP collar setup
The NLOP 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 NLOP near $11.43, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NLOP 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 NLOP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.43 | long |
| Sell 1 | Call | $12.00 | N/A |
| Buy 1 | Put | $10.86 | N/A |
NLOP 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.
NLOP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NLOP. 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 NLOP
Collars on NLOP hedge an existing long NLOP 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.
NLOP thesis for this collar
The market-implied 1-standard-deviation range for NLOP extends from approximately $8.87 on the downside to $13.99 on the upside. A NLOP collar hedges an existing long NLOP 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 NLOP IV rank near 16.33% 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 NLOP at 78.20%. As a Real Estate name, NLOP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NLOP-specific events.
NLOP 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. NLOP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NLOP alongside the broader basket even when NLOP-specific fundamentals are unchanged. Always rebuild the position from current NLOP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NLOP?
- A collar on NLOP is the collar strategy applied to NLOP (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 NLOP stock trading near $11.43, the strikes shown on this page are snapped to the nearest listed NLOP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NLOP 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 NLOP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.20%), 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 NLOP collar?
- The breakeven for the NLOP 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 NLOP market-implied 1-standard-deviation expected move is approximately 22.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NLOP?
- Collars on NLOP hedge an existing long NLOP 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 NLOP implied volatility affect this collar?
- NLOP ATM IV is at 78.20% with IV rank near 16.33%, 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.