NSIT Collar Strategy
NSIT (Insight Enterprises, Inc.), in the Technology sector, (Technology Distributors industry), listed on NASDAQ.
IInsight Enterprises, Inc., together with its subsidiaries, provides information technology (IT) hardware, software, and services solutions in the United States, Canada, Europe, the Middle East, Africa, and the Asia-Pacific. The company's solution portfolio includes cloud enablement, data and AI, DevOps, digital strategy, intelligent applications and edge, and IoT solutions, as well as transformation services. It also offers cloud and data center transformation; connected workplace; and supply chain optimization solutions. In addition, the company provides software maintenance solutions that offers clients to obtain software upgrades, bug fixes, help desk, and other support services; vendor direct support services; and offers Software-as-a-Service subscription products. Further, it designs, procures, deploys, implements, and manages solutions that combine hardware, software, and services to help businesses. Additionally, the company sources, procures, stages, configures, integrates, tests, refurbishes, and redeploys IT products spanning endpoints to infrastructure; and offers software life cycle, and hardware warranty services.
NSIT (Insight Enterprises, Inc.) trades in the Technology sector, specifically Technology Distributors, with a market capitalization of approximately $2.64B, a trailing P/E of 14.95, a beta of 0.96 versus the broader market, a 52-week range of 63.62-148.58, average daily share volume of 480K, a public-listing history dating back to 1995, approximately 14K full-time employees. These structural characteristics shape how NSIT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.96 places NSIT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on NSIT?
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 NSIT snapshot
As of May 15, 2026, spot at $88.66, ATM IV 46.70%, IV rank 7.62%, expected move 13.39%. The collar on NSIT 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 98-day expiry.
Why this collar structure on NSIT specifically: IV regime affects collar pricing on both sides; compressed NSIT IV at 46.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.39% (roughly $11.87 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NSIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NSIT should anchor to the underlying notional of $88.66 per share and to the trader's directional view on NSIT stock.
NSIT collar setup
The NSIT 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 NSIT near $88.66, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NSIT chain at a 98-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 NSIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $88.66 | long |
| Sell 1 | Call | $95.00 | $6.35 |
| Buy 1 | Put | $85.00 | $7.30 |
NSIT collar risk and reward
- Net Premium / Debit
- -$8,961.00
- Max Profit (per contract)
- $539.00
- Max Loss (per contract)
- -$461.00
- Breakeven(s)
- $89.61
- Risk / Reward Ratio
- 1.169
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.
NSIT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NSIT. 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% | -$461.00 |
| $19.61 | -77.9% | -$461.00 |
| $39.21 | -55.8% | -$461.00 |
| $58.82 | -33.7% | -$461.00 |
| $78.42 | -11.6% | -$461.00 |
| $98.02 | +10.6% | +$539.00 |
| $117.62 | +32.7% | +$539.00 |
| $137.22 | +54.8% | +$539.00 |
| $156.83 | +76.9% | +$539.00 |
| $176.43 | +99.0% | +$539.00 |
When traders use collar on NSIT
Collars on NSIT hedge an existing long NSIT 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.
NSIT thesis for this collar
The market-implied 1-standard-deviation range for NSIT extends from approximately $76.79 on the downside to $100.53 on the upside. A NSIT collar hedges an existing long NSIT 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 NSIT IV rank near 7.62% 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 NSIT at 46.70%. As a Technology name, NSIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NSIT-specific events.
NSIT 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. NSIT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NSIT alongside the broader basket even when NSIT-specific fundamentals are unchanged. Always rebuild the position from current NSIT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NSIT?
- A collar on NSIT is the collar strategy applied to NSIT (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 NSIT stock trading near $88.66, the strikes shown on this page are snapped to the nearest listed NSIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NSIT 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 NSIT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.70%), the computed maximum profit is $539.00 per contract and the computed maximum loss is -$461.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NSIT collar?
- The breakeven for the NSIT collar priced on this page is roughly $89.61 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 NSIT market-implied 1-standard-deviation expected move is approximately 13.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NSIT?
- Collars on NSIT hedge an existing long NSIT 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 NSIT implied volatility affect this collar?
- NSIT ATM IV is at 46.70% with IV rank near 7.62%, 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.