OSK Collar Strategy
OSK (Oshkosh Corporation), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.
Oshkosh Corporation designs, manufactures, and markets specialty vehicles and vehicle bodies worldwide. The company's Access Equipment segment provides aerial work platforms and telehandlers for use in various construction, industrial, institutional, and general maintenance applications. This segment also offers rental fleet loans and leases, and floor plan and retail financing through third-party funding arrangements; towing and recovery equipment; carriers and wreckers; equipment installation services; and chassis and service parts sales. Its Defense segment provides heavy, medium, and light tactical wheeled vehicles and related services for the department of defense. The company's Fire & Emergency segment offers custom and commercial firefighting vehicles and equipment; and commercial fire apparatus and emergency vehicles, such as pumpers, aerial platform, ladder and tiller trucks, tankers, rescue vehicles, wild land rough terrain response vehicles, mobile command and control centers, bomb squad vehicles, hazardous materials control vehicles, and other emergency response vehicles. This segment also provides aircraft rescue and firefighting, snow removal, and broadcast vehicles, as well as command trucks, and military simulator shelters and trailers.
OSK (Oshkosh Corporation) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $7.81B, a trailing P/E of 13.62, a beta of 1.33 versus the broader market, a 52-week range of 96.03-180.49, average daily share volume of 671K, a public-listing history dating back to 1985, approximately 18K full-time employees. These structural characteristics shape how OSK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates OSK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. OSK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on OSK?
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 OSK snapshot
As of May 15, 2026, spot at $119.63, ATM IV 42.20%, IV rank 41.37%, expected move 12.10%. The collar on OSK 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 OSK specifically: IV regime affects collar pricing on both sides; mid-range OSK IV at 42.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.10% (roughly $14.47 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 OSK expiries trade a higher absolute premium for lower per-day decay. Position sizing on OSK should anchor to the underlying notional of $119.63 per share and to the trader's directional view on OSK stock.
OSK collar setup
The OSK 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 OSK near $119.63, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OSK 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 OSK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $119.63 | long |
| Sell 1 | Call | $125.00 | $4.20 |
| Buy 1 | Put | $115.00 | $3.85 |
OSK collar risk and reward
- Net Premium / Debit
- -$11,928.00
- Max Profit (per contract)
- $572.00
- Max Loss (per contract)
- -$428.00
- Breakeven(s)
- $119.28
- Risk / Reward Ratio
- 1.336
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.
OSK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OSK. 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% | -$428.00 |
| $26.46 | -77.9% | -$428.00 |
| $52.91 | -55.8% | -$428.00 |
| $79.36 | -33.7% | -$428.00 |
| $105.81 | -11.6% | -$428.00 |
| $132.26 | +10.6% | +$572.00 |
| $158.71 | +32.7% | +$572.00 |
| $185.16 | +54.8% | +$572.00 |
| $211.61 | +76.9% | +$572.00 |
| $238.06 | +99.0% | +$572.00 |
When traders use collar on OSK
Collars on OSK hedge an existing long OSK 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.
OSK thesis for this collar
The market-implied 1-standard-deviation range for OSK extends from approximately $105.16 on the downside to $134.10 on the upside. A OSK collar hedges an existing long OSK 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 OSK IV rank near 41.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on OSK should anchor more to the directional view and the expected-move geometry. As a Industrials name, OSK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OSK-specific events.
OSK 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. OSK positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OSK alongside the broader basket even when OSK-specific fundamentals are unchanged. Always rebuild the position from current OSK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OSK?
- A collar on OSK is the collar strategy applied to OSK (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 OSK stock trading near $119.63, the strikes shown on this page are snapped to the nearest listed OSK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OSK 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 OSK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is $572.00 per contract and the computed maximum loss is -$428.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OSK collar?
- The breakeven for the OSK collar priced on this page is roughly $119.28 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 OSK market-implied 1-standard-deviation expected move is approximately 12.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OSK?
- Collars on OSK hedge an existing long OSK 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 OSK implied volatility affect this collar?
- OSK ATM IV is at 42.20% with IV rank near 41.37%, 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.