NPO Collar Strategy
NPO (EnPro Industries, Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
EnPro Industries, Inc. engages in the design, development, manufacture, marketing, and service of engineered industrial products in the United States, Europe, and internationally. It operates through three segments: Sealing Technologies, Advanced Surface Technologies, and Engineered Materials. The Sealing Technologies segment offers single-use hygienic seals, tubing, components and assemblies; metallic, non-metallic, and composite material gaskets; compression packing products; hydraulic components; expansion joints; wall penetration products; and dynamic, flange, resilient metal, elastomeric, and custom-engineered mechanical seals for chemical and petrochemical processing, pulp and paper processing, power generation, food and pharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, heavy-duty trucking, aerospace, medical, filtration, and semiconductor fabrication industries. This segment also provides aseptic fluid transfer products for the pharmaceutical and biopharmaceutical industries. The Advanced Surface Technologies segment offers cleaning, coating, testing, refurbishment, and verification services for critical components and assemblies used in semiconductor manufacturing equipment, as well as for critical applications in the space, aerospace, and defense markets; and specialized optical filters and thin-film coatings for various applications in the industrial technology, life sciences, and semiconductor markets. The Engineered Materials segment provides self-lubricating, non-rolling, metal polymer, engineered plastics, and fiber reinforced composite bearing products for various applications in the automotive, pharmaceutical, pulp and paper, natural gas, health, power generation, machine tools, air treatment, refining, petrochemical, and general industrial markets.
NPO (EnPro Industries, Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $6.71B, a trailing P/E of 154.50, a beta of 1.57 versus the broader market, a 52-week range of 173.63-318.9, average daily share volume of 248K, a public-listing history dating back to 2002, approximately 4K full-time employees. These structural characteristics shape how NPO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates NPO 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 154.50 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. NPO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NPO?
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 NPO snapshot
As of May 15, 2026, spot at $312.44, ATM IV 40.40%, IV rank 36.80%, expected move 11.58%. The collar on NPO 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 NPO specifically: IV regime affects collar pricing on both sides; mid-range NPO IV at 40.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.58% (roughly $36.19 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 NPO expiries trade a higher absolute premium for lower per-day decay. Position sizing on NPO should anchor to the underlying notional of $312.44 per share and to the trader's directional view on NPO stock.
NPO collar setup
The NPO 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 NPO near $312.44, the first option leg uses a $330.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NPO 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 NPO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $312.44 | long |
| Sell 1 | Call | $330.00 | $7.80 |
| Buy 1 | Put | $300.00 | $10.00 |
NPO collar risk and reward
- Net Premium / Debit
- -$31,464.00
- Max Profit (per contract)
- $1,536.00
- Max Loss (per contract)
- -$1,464.00
- Breakeven(s)
- $314.64
- Risk / Reward Ratio
- 1.049
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.
NPO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NPO. 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% | -$1,464.00 |
| $69.09 | -77.9% | -$1,464.00 |
| $138.17 | -55.8% | -$1,464.00 |
| $207.25 | -33.7% | -$1,464.00 |
| $276.33 | -11.6% | -$1,464.00 |
| $345.42 | +10.6% | +$1,536.00 |
| $414.50 | +32.7% | +$1,536.00 |
| $483.58 | +54.8% | +$1,536.00 |
| $552.66 | +76.9% | +$1,536.00 |
| $621.74 | +99.0% | +$1,536.00 |
When traders use collar on NPO
Collars on NPO hedge an existing long NPO 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.
NPO thesis for this collar
The market-implied 1-standard-deviation range for NPO extends from approximately $276.25 on the downside to $348.63 on the upside. A NPO collar hedges an existing long NPO 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 NPO IV rank near 36.80% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NPO should anchor more to the directional view and the expected-move geometry. As a Industrials name, NPO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NPO-specific events.
NPO 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. NPO positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NPO alongside the broader basket even when NPO-specific fundamentals are unchanged. Always rebuild the position from current NPO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NPO?
- A collar on NPO is the collar strategy applied to NPO (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 NPO stock trading near $312.44, the strikes shown on this page are snapped to the nearest listed NPO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NPO 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 NPO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.40%), the computed maximum profit is $1,536.00 per contract and the computed maximum loss is -$1,464.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NPO collar?
- The breakeven for the NPO collar priced on this page is roughly $314.64 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 NPO market-implied 1-standard-deviation expected move is approximately 11.58%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NPO?
- Collars on NPO hedge an existing long NPO 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 NPO implied volatility affect this collar?
- NPO ATM IV is at 40.40% with IV rank near 36.80%, 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.