OHI Collar Strategy
OHI (Omega Healthcare Investors, Inc.), in the Real Estate sector, (REIT - Healthcare Facilities industry), listed on NYSE.
Omega Healthcare Investors, Inc. functions as a Real Estate Investment Trust (REIT) primarily focused on the long-term healthcare sector. The company strategically invests in properties providing skilled nursing and assisted living services. A diverse array of healthcare operators manage these assets, predominantly utilizing a triple-net lease framework. Its portfolio is geographically distributed across all regions of the United States and also includes holdings in the United Kingdom.
OHI (Omega Healthcare Investors, Inc.) trades in the Real Estate sector, specifically REIT - Healthcare Facilities, with a market capitalization of approximately $14.31B, a trailing P/E of 22.59, a beta of 0.58 versus the broader market, a 52-week range of 35.7-49.33, average daily share volume of 2.4M, 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 0.58 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 June 30, 2026, spot at $47.89, ATM IV 20.30%, IV rank 45.62%, expected move 5.82%. 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 17-day expiry.
Why this collar structure on OHI specifically: IV regime affects collar pricing on both sides; mid-range OHI IV at 20.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.82% (roughly $2.79 on the underlying). The 17-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 $47.89 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 $47.89, 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 17-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 | $47.89 | long |
| Sell 1 | Call | $50.00 | $0.20 |
| Buy 1 | Put | $45.00 | $0.18 |
OHI collar risk and reward
- Net Premium / Debit
- -$4,786.50
- Max Profit (per contract)
- $213.50
- Max Loss (per contract)
- -$286.50
- Breakeven(s)
- $47.86
- Risk / Reward Ratio
- 0.745
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% | -$286.50 |
| $10.60 | -77.9% | -$286.50 |
| $21.19 | -55.8% | -$286.50 |
| $31.77 | -33.7% | -$286.50 |
| $42.36 | -11.5% | -$286.50 |
| $52.95 | +10.6% | +$213.50 |
| $63.54 | +32.7% | +$213.50 |
| $74.12 | +54.8% | +$213.50 |
| $84.71 | +76.9% | +$213.50 |
| $95.30 | +99.0% | +$213.50 |
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 $45.10 on the downside to $50.68 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 45.62% 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 $47.89, 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 20.30%), the computed maximum profit is $213.50 per contract and the computed maximum loss is -$286.50 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 $47.86 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 5.82%; 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 20.30% with IV rank near 45.62%, 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.