NXT Collar Strategy
NXT (Nextpower Inc.), in the Technology sector, (Consumer Electronics industry), listed on NASDAQ.
Nextpower Inc. provides solar tracker technologies and solutions for utility-scale and distributed generation solar applications in the United States and internationally. The company offers tracking solutions, including NX Horizon, a solar tracking solution; NX Horizon-XTR, a terrain-following tracker to expand the addressable market for trackers on sites with sloped, uneven, and challenging terrain; NX Horizon Hail Pro adds automatic stowing using weather service information; and NX Horizon Low Carbon, a solar tracker solution with a reduced carbon footprint. It also provides TrueCapture, an energy yield management system that addresses power production shortfalls; NX Anchor, a solar tracker foundation system to facilitate solar project development in challenging soil conditions; NX Truss Driver, an advanced installation equipment; and NX Navigator, which assists solar power plant owners and operators in monitoring, controlling, and protecting their solar projects. The company serves engineering, procurement, and construction firms, as well as solar project developers and owners. Nextpower Inc. was formerly known as Nextracker Inc. and changed its name to Nextpower Inc. in November 2025. The company was founded in 2013 and is headquartered in Fremont, California.
NXT (Nextpower Inc.) trades in the Technology sector, specifically Consumer Electronics, with a market capitalization of approximately $16.07B, a trailing P/E of 27.11, a beta of 1.74 versus the broader market, a 52-week range of 51.69-163.13, average daily share volume of 2.6M, a public-listing history dating back to 2023, approximately 1K 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 1.74 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.
Current NXT snapshot
As of June 29, 2026, spot at $110.96, ATM IV 77.60%, IV rank 25.68%, expected move 22.25%. The collar on NXT 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 18-day expiry.
Why this collar structure on NXT specifically: IV regime affects collar pricing on both sides; compressed NXT IV at 77.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.25% (roughly $24.69 on the underlying). The 18-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 $110.96 per share and to the trader's directional view on NXT stock.
NXT collar setup
The NXT 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 NXT near $110.96, the first option leg uses a $115.00 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 18-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 | $110.96 | long |
| Sell 1 | Call | $115.00 | $6.20 |
| Buy 1 | Put | $105.00 | $4.70 |
NXT collar risk and reward
- Net Premium / Debit
- -$10,946.00
- Max Profit (per contract)
- $554.00
- Max Loss (per contract)
- -$446.00
- Breakeven(s)
- $109.46
- Risk / Reward Ratio
- 1.242
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% | -$446.00 |
| $24.54 | -77.9% | -$446.00 |
| $49.08 | -55.8% | -$446.00 |
| $73.61 | -33.7% | -$446.00 |
| $98.14 | -11.6% | -$446.00 |
| $122.67 | +10.6% | +$554.00 |
| $147.21 | +32.7% | +$554.00 |
| $171.74 | +54.8% | +$554.00 |
| $196.27 | +76.9% | +$554.00 |
| $220.80 | +99.0% | +$554.00 |
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 $86.27 on the downside to $135.65 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 25.68% 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 NXT at 77.60%. 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 trading near $110.96, the strikes shown on this page are snapped to the nearest listed NXT chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 77.60%), the computed maximum profit is $554.00 per contract and the computed maximum loss is -$446.00 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 $109.46 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 NXT market-implied 1-standard-deviation expected move is approximately 22.25%; 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 77.60% with IV rank near 25.68%, 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.