NXT Collar Strategy
NXT (Nextpower Inc.), in the Technology sector, (Solar industry), listed on NASDAQ.
Nextpower, Inc. engages in the provision of integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects. Its products enable solar panels in utility-scale power plants to follow the sun's movement across the sky and optimize plant performance. The company was founded by Daniel S. Shugar, Alexander Au, Nicholas Miller, Michael Mehavich, Marco Garcia, and Tyroan Hardy in 2013 and is headquartered in Fremont, CA.
NXT (Nextpower Inc.) trades in the Technology sector, specifically Solar, with a market capitalization of approximately $15.39B, a trailing P/E of 25.75, a beta of 1.95 versus the broader market, a 52-week range of 63.87-163.13, average daily share volume of 2.8M, a public-listing history dating back to 2023, approximately 2K full-time employees. These structural characteristics shape how NXT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.95 indicates NXT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on NXT?
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.
NXT snapshot
As of August 14, 2026, spot at $102.35, ATM IV 63.60%, IV rank 14.56%, expected move 18.23%. The collar on NXT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on NXT specifically: IV regime affects collar pricing on both sides; compressed NXT IV at 63.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.23% (roughly $18.66 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NXT expiries trade a higher absolute premium for lower per-day decay. Position sizing on NXT should anchor to the underlying notional of $102.35 per share and to the trader's directional view on NXT stock.
NXT collar setup
The NXT collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With NXT at $102.35 on that close, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NXT chain at a 35-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 NXT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $102.35 | long |
| Sell 1 | Call | $105.00 | $7.40 |
| Buy 1 | Put | $95.00 | $4.35 |
NXT collar risk and reward
- Net Premium / Debit
- -$9,930.00
- Max Profit (per contract)
- $570.00
- Max Loss (per contract)
- -$430.00
- Breakeven(s)
- $99.30
- Risk / Reward Ratio
- 1.326
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.
NXT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NXT. 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% | -$430.00 |
| $22.64 | -77.9% | -$430.00 |
| $45.27 | -55.8% | -$430.00 |
| $67.90 | -33.7% | -$430.00 |
| $90.53 | -11.6% | -$430.00 |
| $113.16 | +10.6% | +$570.00 |
| $135.78 | +32.7% | +$570.00 |
| $158.41 | +54.8% | +$570.00 |
| $181.04 | +76.9% | +$570.00 |
| $203.67 | +99.0% | +$570.00 |
When traders use collar on NXT
Collars on NXT hedge an existing long NXT 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.
NXT thesis for this collar
The market-implied 1-standard-deviation range for NXT extends from approximately $83.69 on the downside to $121.01 on the upside. A NXT collar hedges an existing long NXT 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 NXT IV rank near 14.56% 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 NXT at 63.60%. As a Technology name, NXT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NXT-specific events.
NXT 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. NXT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NXT alongside the broader basket even when NXT-specific fundamentals are unchanged. Always rebuild the position from current NXT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NXT?
- A collar on NXT is the collar strategy applied to NXT (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 NXT stock at $102.35 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed NXT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NXT 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 NXT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 63.60%), the computed maximum profit is $570.00 per contract and the computed maximum loss is -$430.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NXT collar?
- The breakeven for the NXT collar priced on this page is roughly $99.30 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The NXT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 18.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NXT?
- Collars on NXT hedge an existing long NXT 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 NXT implied volatility affect this collar?
- NXT ATM IV is at 63.60% with IV rank near 14.56%, 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.