NOVT Collar Strategy
NOVT (Novanta Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company's Photonics segment offers photonics-based solutions, including laser scanning and beam delivery, CO2 laser, solid state laser, ultrafast laser, and optical light engine products serving photonics-based applications for industrial processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. It's Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless technologies, video recorders, and video integration technologies for operating room integrations; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. In addition, its Precision Motion segment offers optical and inductive encoders, precision motors, servo drives and motion control solutions, integrated stepper motors, intelligent robotic end-of-arm technology solutions, air bearings, and air bearing spindles. The company sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Synrad, Laser Quantum, ARGES, WOM, NDS, NDSsi, Med X Change, Reach Technology, JADAK, ThingMagic, Photo Research, Celera Motion, MicroE, Zettlex, Applimotion, Ingenia, and Westwind brands. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016.
NOVT (Novanta Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $5.54B, a trailing P/E of 116.97, a beta of 1.62 versus the broader market, a 52-week range of 98.27-165.56, average daily share volume of 423K, a public-listing history dating back to 1999, approximately 3K full-time employees. These structural characteristics shape how NOVT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.62 indicates NOVT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 116.97 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on NOVT?
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 NOVT snapshot
As of May 15, 2026, spot at $152.80, ATM IV 51.30%, IV rank 42.86%, expected move 14.71%. The collar on NOVT 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 NOVT specifically: IV regime affects collar pricing on both sides; mid-range NOVT IV at 51.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.71% (roughly $22.47 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 NOVT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NOVT should anchor to the underlying notional of $152.80 per share and to the trader's directional view on NOVT stock.
NOVT collar setup
The NOVT 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 NOVT near $152.80, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NOVT 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 NOVT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $152.80 | long |
| Sell 1 | Call | $160.00 | $6.55 |
| Buy 1 | Put | $145.00 | $6.15 |
NOVT collar risk and reward
- Net Premium / Debit
- -$15,240.00
- Max Profit (per contract)
- $760.00
- Max Loss (per contract)
- -$740.00
- Breakeven(s)
- $152.40
- Risk / Reward Ratio
- 1.027
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.
NOVT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NOVT. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$740.00 |
| $33.79 | -77.9% | -$740.00 |
| $67.58 | -55.8% | -$740.00 |
| $101.36 | -33.7% | -$740.00 |
| $135.15 | -11.6% | -$740.00 |
| $168.93 | +10.6% | +$760.00 |
| $202.71 | +32.7% | +$760.00 |
| $236.50 | +54.8% | +$760.00 |
| $270.28 | +76.9% | +$760.00 |
| $304.06 | +99.0% | +$760.00 |
When traders use collar on NOVT
Collars on NOVT hedge an existing long NOVT 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.
NOVT thesis for this collar
The market-implied 1-standard-deviation range for NOVT extends from approximately $130.33 on the downside to $175.27 on the upside. A NOVT collar hedges an existing long NOVT 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 NOVT IV rank near 42.86% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NOVT should anchor more to the directional view and the expected-move geometry. As a Technology name, NOVT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NOVT-specific events.
NOVT 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. NOVT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NOVT alongside the broader basket even when NOVT-specific fundamentals are unchanged. Always rebuild the position from current NOVT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NOVT?
- A collar on NOVT is the collar strategy applied to NOVT (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 NOVT stock trading near $152.80, the strikes shown on this page are snapped to the nearest listed NOVT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NOVT 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 NOVT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.30%), the computed maximum profit is $760.00 per contract and the computed maximum loss is -$740.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NOVT collar?
- The breakeven for the NOVT collar priced on this page is roughly $152.40 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 NOVT market-implied 1-standard-deviation expected move is approximately 14.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NOVT?
- Collars on NOVT hedge an existing long NOVT 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 NOVT implied volatility affect this collar?
- NOVT ATM IV is at 51.30% with IV rank near 42.86%, 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.