NTGR Collar Strategy
NTGR (NETGEAR, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
NETGEAR, Inc. designs, develops, and markets networking and Internet connected products for consumers, businesses, and service providers. The company operates in two segments, Connected Home, and Small and Medium Business. It offers smart home/connected home/broadband access products, such as Wi-Fi routers and home Wi-Fi systems, broadband modems, Wi-Fi gateways, Wi-Fi hotspots, Wi-Fi range extenders, Powerline adapters and bridges, Wi-Fi network adapters, and digital canvasses; and value-added service offerings, including technical support, parental controls, and cybersecurity protection. The company also provides Ethernet switches, Wi-Fi mesh systems and access points, local and remote unified storage products, and Internet security appliances for small and medium-sized businesses, as well as education, hospitality and health markets. It markets and sells its products through traditional retailers, online retailers, wholesale distributors, direct market resellers, value-added resellers, and broadband service providers, as well as through its direct online store at www.netgear.com. in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 1996 and is headquartered in San Jose, California.
NTGR (NETGEAR, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $689.2M, a beta of 1.18 versus the broader market, a 52-week range of 19-36.86, average daily share volume of 528K, a public-listing history dating back to 2003, approximately 636 full-time employees. These structural characteristics shape how NTGR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places NTGR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on NTGR?
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 NTGR snapshot
As of May 15, 2026, spot at $25.05, ATM IV 54.00%, IV rank 31.63%, expected move 15.48%. The collar on NTGR 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 NTGR specifically: IV regime affects collar pricing on both sides; mid-range NTGR IV at 54.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.48% (roughly $3.88 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 NTGR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NTGR should anchor to the underlying notional of $25.05 per share and to the trader's directional view on NTGR stock.
NTGR collar setup
The NTGR 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 NTGR near $25.05, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NTGR 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 NTGR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.05 | long |
| Sell 1 | Call | $26.00 | $1.25 |
| Buy 1 | Put | $24.00 | $1.18 |
NTGR collar risk and reward
- Net Premium / Debit
- -$2,497.50
- Max Profit (per contract)
- $102.50
- Max Loss (per contract)
- -$97.50
- Breakeven(s)
- $24.98
- Risk / Reward Ratio
- 1.051
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.
NTGR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NTGR. 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% | -$97.50 |
| $5.55 | -77.9% | -$97.50 |
| $11.09 | -55.7% | -$97.50 |
| $16.62 | -33.6% | -$97.50 |
| $22.16 | -11.5% | -$97.50 |
| $27.70 | +10.6% | +$102.50 |
| $33.24 | +32.7% | +$102.50 |
| $38.77 | +54.8% | +$102.50 |
| $44.31 | +76.9% | +$102.50 |
| $49.85 | +99.0% | +$102.50 |
When traders use collar on NTGR
Collars on NTGR hedge an existing long NTGR 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.
NTGR thesis for this collar
The market-implied 1-standard-deviation range for NTGR extends from approximately $21.17 on the downside to $28.93 on the upside. A NTGR collar hedges an existing long NTGR 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 NTGR IV rank near 31.63% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NTGR should anchor more to the directional view and the expected-move geometry. As a Technology name, NTGR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NTGR-specific events.
NTGR 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. NTGR positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NTGR alongside the broader basket even when NTGR-specific fundamentals are unchanged. Always rebuild the position from current NTGR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NTGR?
- A collar on NTGR is the collar strategy applied to NTGR (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 NTGR stock trading near $25.05, the strikes shown on this page are snapped to the nearest listed NTGR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NTGR 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 NTGR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 54.00%), the computed maximum profit is $102.50 per contract and the computed maximum loss is -$97.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NTGR collar?
- The breakeven for the NTGR collar priced on this page is roughly $24.98 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 NTGR market-implied 1-standard-deviation expected move is approximately 15.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NTGR?
- Collars on NTGR hedge an existing long NTGR 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 NTGR implied volatility affect this collar?
- NTGR ATM IV is at 54.00% with IV rank near 31.63%, 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.