OI Collar Strategy
OI (O-I Glass, Inc.), in the Consumer Cyclical sector, (Packaging & Containers industry), listed on NYSE.
O-I Glass, Inc., through its subsidiaries, manufactures and sells glass containers to food and beverage manufacturers primarily in the Americas, Europe, and the Asia Pacific. The company produces glass containers for alcoholic beverages, including beer, flavored malt beverages, spirits, and wine. It is also involved in the production of glass packaging for various food items, soft drinks, tea, juices, and pharmaceuticals. In addition, the company offers glass containers in a range of sizes, shapes, and colors. It sells its products directly to customers under annual or multi-year supply agreements, as well as through distributors. The company was founded in 1903 and is headquartered in Perrysburg, Ohio.
OI (O-I Glass, Inc.) trades in the Consumer Cyclical sector, specifically Packaging & Containers, with a market capitalization of approximately $1.38B, a beta of 0.65 versus the broader market, a 52-week range of 8-16.91, average daily share volume of 2.5M, a public-listing history dating back to 1991, approximately 21K full-time employees. These structural characteristics shape how OI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates OI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on OI?
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 OI snapshot
As of May 15, 2026, spot at $8.37, ATM IV 65.60%, IV rank 90.55%, expected move 18.81%. The collar on OI 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 OI specifically: IV regime affects collar pricing on both sides; elevated OI IV at 65.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.81% (roughly $1.57 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 OI expiries trade a higher absolute premium for lower per-day decay. Position sizing on OI should anchor to the underlying notional of $8.37 per share and to the trader's directional view on OI stock.
OI collar setup
The OI 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 OI near $8.37, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OI 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 OI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $8.37 | long |
| Sell 1 | Call | $9.00 | $0.38 |
| Buy 1 | Put | $8.00 | $0.45 |
OI collar risk and reward
- Net Premium / Debit
- -$844.50
- Max Profit (per contract)
- $55.50
- Max Loss (per contract)
- -$44.50
- Breakeven(s)
- $8.44
- Risk / Reward Ratio
- 1.247
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.
OI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OI. 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 | -99.9% | -$44.50 |
| $1.86 | -77.8% | -$44.50 |
| $3.71 | -55.7% | -$44.50 |
| $5.56 | -33.6% | -$44.50 |
| $7.41 | -11.5% | -$44.50 |
| $9.26 | +10.6% | +$55.50 |
| $11.11 | +32.7% | +$55.50 |
| $12.96 | +54.8% | +$55.50 |
| $14.81 | +76.9% | +$55.50 |
| $16.66 | +99.0% | +$55.50 |
When traders use collar on OI
Collars on OI hedge an existing long OI 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.
OI thesis for this collar
The market-implied 1-standard-deviation range for OI extends from approximately $6.80 on the downside to $9.94 on the upside. A OI collar hedges an existing long OI 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 OI IV rank near 90.55% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on OI at 65.60%. As a Consumer Cyclical name, OI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OI-specific events.
OI 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. OI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OI alongside the broader basket even when OI-specific fundamentals are unchanged. Always rebuild the position from current OI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OI?
- A collar on OI is the collar strategy applied to OI (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 OI stock trading near $8.37, the strikes shown on this page are snapped to the nearest listed OI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OI 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 OI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 65.60%), the computed maximum profit is $55.50 per contract and the computed maximum loss is -$44.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OI collar?
- The breakeven for the OI collar priced on this page is roughly $8.44 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 OI market-implied 1-standard-deviation expected move is approximately 18.81%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OI?
- Collars on OI hedge an existing long OI 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 OI implied volatility affect this collar?
- OI ATM IV is at 65.60% with IV rank near 90.55%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.