OHI Collar Strategy
OHI (Omega Healthcare Investors, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.
Omega is a real estate investment trust that invests in the long-term healthcare industry, primarily in skilled nursing and assisted living facilities. Its portfolio of assets is operated by a diverse group of healthcare companies, predominantly in a triple-net lease structure. The assets span all regions within the US, as well as in the UK.
OHI (Omega Healthcare Investors, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $14.29B, a trailing P/E of 22.56, a beta of 0.59 versus the broader market, a 52-week range of 35.7-49.14, average daily share volume of 2.0M, a public-listing history dating back to 1992, approximately 60 full-time employees. These structural characteristics shape how OHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates OHI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OHI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on OHI?
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 OHI snapshot
As of May 15, 2026, spot at $47.30, ATM IV 20.60%, IV rank 47.85%, expected move 5.91%. The collar on OHI 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 OHI specifically: IV regime affects collar pricing on both sides; mid-range OHI IV at 20.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.91% (roughly $2.79 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 OHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OHI should anchor to the underlying notional of $47.30 per share and to the trader's directional view on OHI stock.
OHI collar setup
The OHI 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 OHI near $47.30, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OHI 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 OHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $47.30 | long |
| Sell 1 | Call | $50.00 | $0.25 |
| Buy 1 | Put | $45.00 | $0.35 |
OHI collar risk and reward
- Net Premium / Debit
- -$4,740.00
- Max Profit (per contract)
- $260.00
- Max Loss (per contract)
- -$240.00
- Breakeven(s)
- $47.40
- Risk / Reward Ratio
- 1.083
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.
OHI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OHI. 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% | -$240.00 |
| $10.47 | -77.9% | -$240.00 |
| $20.92 | -55.8% | -$240.00 |
| $31.38 | -33.7% | -$240.00 |
| $41.84 | -11.5% | -$240.00 |
| $52.30 | +10.6% | +$260.00 |
| $62.75 | +32.7% | +$260.00 |
| $73.21 | +54.8% | +$260.00 |
| $83.67 | +76.9% | +$260.00 |
| $94.12 | +99.0% | +$260.00 |
When traders use collar on OHI
Collars on OHI hedge an existing long OHI 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.
OHI thesis for this collar
The market-implied 1-standard-deviation range for OHI extends from approximately $44.51 on the downside to $50.09 on the upside. A OHI collar hedges an existing long OHI 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 OHI IV rank near 47.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on OHI should anchor more to the directional view and the expected-move geometry. As a Real Estate name, OHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OHI-specific events.
OHI 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. OHI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OHI alongside the broader basket even when OHI-specific fundamentals are unchanged. Always rebuild the position from current OHI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OHI?
- A collar on OHI is the collar strategy applied to OHI (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 OHI stock trading near $47.30, the strikes shown on this page are snapped to the nearest listed OHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OHI 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 OHI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.60%), the computed maximum profit is $260.00 per contract and the computed maximum loss is -$240.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OHI collar?
- The breakeven for the OHI collar priced on this page is roughly $47.40 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 OHI market-implied 1-standard-deviation expected move is approximately 5.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OHI?
- Collars on OHI hedge an existing long OHI 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 OHI implied volatility affect this collar?
- OHI ATM IV is at 20.60% with IV rank near 47.85%, 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.