NVGS Collar Strategy
NVGS (Navigator Holdings Ltd.), in the Energy sector, (Oil & Gas Midstream industry), listed on NYSE.
Navigator Holdings Ltd. owns and operates a fleet of liquefied gas carriers worldwide. The company provides international and regional seaborne transportation services of liquefied petroleum gas, petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders. As of April 14, 2022, it operated a fleet of 53 semi- or fully-refrigerated liquefied gas carriers. The company was founded in 1997 and is based in London, the United Kingdom.
NVGS (Navigator Holdings Ltd.) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $1.52B, a trailing P/E of 13.92, a beta of 0.45 versus the broader market, a 52-week range of 13.5-23.54, average daily share volume of 446K, a public-listing history dating back to 2007, approximately 174 full-time employees. These structural characteristics shape how NVGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates NVGS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. NVGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on NVGS?
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 NVGS snapshot
As of May 15, 2026, spot at $23.68, ATM IV 28.10%, IV rank 3.68%, expected move 8.06%. The collar on NVGS 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 NVGS specifically: IV regime affects collar pricing on both sides; compressed NVGS IV at 28.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.06% (roughly $1.91 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 NVGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVGS should anchor to the underlying notional of $23.68 per share and to the trader's directional view on NVGS stock.
NVGS collar setup
The NVGS 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 NVGS near $23.68, the first option leg uses a $25.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVGS 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 NVGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $23.68 | long |
| Sell 1 | Call | $25.00 | $0.35 |
| Buy 1 | Put | $22.50 | $0.40 |
NVGS collar risk and reward
- Net Premium / Debit
- -$2,373.00
- Max Profit (per contract)
- $127.00
- Max Loss (per contract)
- -$123.00
- Breakeven(s)
- $23.73
- Risk / Reward Ratio
- 1.033
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.
NVGS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NVGS. 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% | -$123.00 |
| $5.24 | -77.9% | -$123.00 |
| $10.48 | -55.7% | -$123.00 |
| $15.71 | -33.6% | -$123.00 |
| $20.95 | -11.5% | -$123.00 |
| $26.18 | +10.6% | +$127.00 |
| $31.42 | +32.7% | +$127.00 |
| $36.65 | +54.8% | +$127.00 |
| $41.89 | +76.9% | +$127.00 |
| $47.12 | +99.0% | +$127.00 |
When traders use collar on NVGS
Collars on NVGS hedge an existing long NVGS 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.
NVGS thesis for this collar
The market-implied 1-standard-deviation range for NVGS extends from approximately $21.77 on the downside to $25.59 on the upside. A NVGS collar hedges an existing long NVGS 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 NVGS IV rank near 3.68% 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 NVGS at 28.10%. As a Energy name, NVGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVGS-specific events.
NVGS 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. NVGS positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVGS alongside the broader basket even when NVGS-specific fundamentals are unchanged. Always rebuild the position from current NVGS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NVGS?
- A collar on NVGS is the collar strategy applied to NVGS (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 NVGS stock trading near $23.68, the strikes shown on this page are snapped to the nearest listed NVGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVGS 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 NVGS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $127.00 per contract and the computed maximum loss is -$123.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVGS collar?
- The breakeven for the NVGS collar priced on this page is roughly $23.73 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 NVGS market-implied 1-standard-deviation expected move is approximately 8.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NVGS?
- Collars on NVGS hedge an existing long NVGS 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 NVGS implied volatility affect this collar?
- NVGS ATM IV is at 28.10% with IV rank near 3.68%, 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.