OZK Collar Strategy
OZK (Bank OZK), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Bank OZK provides various retail and commercial banking services. It accepts various deposit products, including non-interest-bearing checking, interest bearing transaction, business sweep, savings, money market, individual retirement, and other accounts, as well as time deposits. The company also offers real estate, consumer and business purpose, indirect recreational vehicle and marine, commercial and industrial, government guaranteed, agricultural, small business, homebuilder, and affordable housing loans; business aviation and subscription financing services; and mortgage and other lending products. In addition, it provides trust and wealth services, such as personal, custodial, investment management, and retirement accounts, as well as corporate trust services comprising trustee, paying and registered transfer agent, and other incidental services. Further, the company offers treasury management services comprising automated clearing house, wire transfer, transaction reporting, wholesale lockbox, remote deposit capture, automated credit line transfer, reconciliation, positive pay, and merchant and commercial card services, as well as zero balance and investment sweep accounts. Additionally, it provides ATMs; telephone, online, and mobile banking services; debit and credit cards; safe deposit boxes; and other products and services, as well as processes merchant debit and credit card transactions.
OZK (Bank OZK) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $5.09B, a trailing P/E of 7.30, a beta of 0.90 versus the broader market, a 52-week range of 42.37-53.66, average daily share volume of 1.3M, a public-listing history dating back to 1997, approximately 3K full-time employees. These structural characteristics shape how OZK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places OZK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 7.30 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. OZK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on OZK?
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 OZK snapshot
As of May 15, 2026, spot at $46.70, ATM IV 27.10%, IV rank 10.25%, expected move 7.77%. The collar on OZK 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 245-day expiry.
Why this collar structure on OZK specifically: IV regime affects collar pricing on both sides; compressed OZK IV at 27.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.77% (roughly $3.63 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OZK expiries trade a higher absolute premium for lower per-day decay. Position sizing on OZK should anchor to the underlying notional of $46.70 per share and to the trader's directional view on OZK stock.
OZK collar setup
The OZK 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 OZK near $46.70, 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 OZK chain at a 245-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 OZK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $46.70 | long |
| Sell 1 | Call | $50.00 | $3.20 |
| Buy 1 | Put | $45.00 | $3.80 |
OZK collar risk and reward
- Net Premium / Debit
- -$4,730.00
- Max Profit (per contract)
- $270.00
- Max Loss (per contract)
- -$230.00
- Breakeven(s)
- $47.30
- Risk / Reward Ratio
- 1.174
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.
OZK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OZK. 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% | -$230.00 |
| $10.33 | -77.9% | -$230.00 |
| $20.66 | -55.8% | -$230.00 |
| $30.98 | -33.7% | -$230.00 |
| $41.31 | -11.5% | -$230.00 |
| $51.63 | +10.6% | +$270.00 |
| $61.96 | +32.7% | +$270.00 |
| $72.28 | +54.8% | +$270.00 |
| $82.61 | +76.9% | +$270.00 |
| $92.93 | +99.0% | +$270.00 |
When traders use collar on OZK
Collars on OZK hedge an existing long OZK 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.
OZK thesis for this collar
The market-implied 1-standard-deviation range for OZK extends from approximately $43.07 on the downside to $50.33 on the upside. A OZK collar hedges an existing long OZK 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 OZK IV rank near 10.25% 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 OZK at 27.10%. As a Financial Services name, OZK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OZK-specific events.
OZK 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. OZK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OZK alongside the broader basket even when OZK-specific fundamentals are unchanged. Always rebuild the position from current OZK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OZK?
- A collar on OZK is the collar strategy applied to OZK (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 OZK stock trading near $46.70, the strikes shown on this page are snapped to the nearest listed OZK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OZK 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 OZK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is $270.00 per contract and the computed maximum loss is -$230.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OZK collar?
- The breakeven for the OZK collar priced on this page is roughly $47.30 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 OZK market-implied 1-standard-deviation expected move is approximately 7.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OZK?
- Collars on OZK hedge an existing long OZK 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 OZK implied volatility affect this collar?
- OZK ATM IV is at 27.10% with IV rank near 10.25%, 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.