NRIM Collar Strategy
NRIM (Northrim BanCorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Northrim BanCorp, Inc. functions as the parent entity for Northrim Bank, which delivers a comprehensive range of commercial banking products and services primarily to businesses and professional clients. Its operations are divided into two main divisions: Community Banking and Home Mortgage Lending. The bank offers a diverse suite of deposit accounts, including noninterest-bearing checking accounts, interest-bearing time deposits, standard checking and savings accounts, individual retirement accounts (IRAs), money market deposit accounts, certificates of deposit (CDs), and specialized business sweep accounts. For lending needs, it provides various short and medium-term commercial loans, commercial lines of credit, construction and real estate financing, consumer loans, and solutions for short-term working capital. Customers benefit from extensive digital and convenience services such as consumer and business online banking, a mobile app with mobile deposit capabilities, mobile web and text banking, online account opening, personal finance management tools, digital document access, and a variety of debit and credit card offerings. Further convenience is provided through telebanking and automated teller machines (ATMs).
NRIM (Northrim BanCorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $622.0M, a trailing P/E of 9.54, a beta of 0.90 versus the broader market, a 52-week range of 19.6-30.82, average daily share volume of 132K, a public-listing history dating back to 1990, approximately 503 full-time employees. These structural characteristics shape how NRIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places NRIM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 9.54 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. NRIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NRIM?
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 NRIM snapshot
As of June 30, 2026, spot at $27.81, ATM IV 59.30%, expected move 17.00%. The collar on NRIM 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 17-day expiry.
Why this collar structure on NRIM specifically: IV rank is unavailable in the current snapshot, so regime-based timing for NRIM is inferred from ATM IV at 59.30% alone, with a market-implied 1-standard-deviation move of approximately 17.00% (roughly $4.73 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NRIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on NRIM should anchor to the underlying notional of $27.81 per share and to the trader's directional view on NRIM stock.
NRIM collar setup
The NRIM 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 NRIM near $27.81, the first option leg uses a $29.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NRIM chain at a 17-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 NRIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.81 | long |
| Sell 1 | Call | $29.20 | N/A |
| Buy 1 | Put | $26.42 | N/A |
NRIM 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.
NRIM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NRIM. 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 NRIM
Collars on NRIM hedge an existing long NRIM 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.
NRIM thesis for this collar
The market-implied 1-standard-deviation range for NRIM extends from approximately $23.08 on the downside to $32.54 on the upside. A NRIM collar hedges an existing long NRIM 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. As a Financial Services name, NRIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NRIM-specific events.
NRIM 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. NRIM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NRIM alongside the broader basket even when NRIM-specific fundamentals are unchanged. Always rebuild the position from current NRIM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NRIM?
- A collar on NRIM is the collar strategy applied to NRIM (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 NRIM stock trading near $27.81, the strikes shown on this page are snapped to the nearest listed NRIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NRIM 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 NRIM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 59.30%), 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 NRIM collar?
- The breakeven for the NRIM 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 NRIM market-implied 1-standard-deviation expected move is approximately 17.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NRIM?
- Collars on NRIM hedge an existing long NRIM 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 NRIM implied volatility affect this collar?
- Current NRIM ATM IV is 59.30%; IV rank context is unavailable in the current snapshot.