PACK Collar Strategy
PACK (Ranpak Holdings Corp.), in the Consumer Cyclical sector, (Packaging & Containers industry), listed on NYSE.
Ranpak Holdings Corp., together with its subsidiaries, provide product protection solutions for e-commerce and industrial supply chains in North America, Europe, and Asia. The company offers protective packaging solutions, such as void-fill protective systems that convert paper to fill empty spaces in secondary packages and protect objects under the FillPak brand; cushioning protective systems, which convert paper into cushioning pads under the PadPak brand; and wrapping protective systems that create pads or paper mesh to wrap and protect fragile items, as well as to line boxes and provide separation when shipping various objects under the WrapPak, Geami, and ReadyRoll brands. The company's products also include line automation products, which help end users automate the void filling and box closure processes after product packing is complete. It sells its products to end users primarily through a distributor network, and directly to select end users. Ranpak Holdings Corp. was founded in 1972 and is headquartered in Concord Township, Ohio.
PACK (Ranpak Holdings Corp.) trades in the Consumer Cyclical sector, specifically Packaging & Containers, with a market capitalization of approximately $538.9M, a beta of 3.06 versus the broader market, a 52-week range of 3.2-6.67, average daily share volume of 622K, a public-listing history dating back to 2018, approximately 800 full-time employees. These structural characteristics shape how PACK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.06 indicates PACK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on PACK?
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 PACK snapshot
As of May 15, 2026, spot at $5.81, ATM IV 95.20%, IV rank 35.19%, expected move 27.29%. The collar on PACK 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 PACK specifically: IV regime affects collar pricing on both sides; mid-range PACK IV at 95.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 27.29% (roughly $1.59 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 PACK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PACK should anchor to the underlying notional of $5.81 per share and to the trader's directional view on PACK stock.
PACK collar setup
The PACK 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 PACK near $5.81, the first option leg uses a $6.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PACK 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 PACK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.81 | long |
| Sell 1 | Call | $6.10 | N/A |
| Buy 1 | Put | $5.52 | N/A |
PACK collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
PACK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PACK. 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.
When traders use collar on PACK
Collars on PACK hedge an existing long PACK 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.
PACK thesis for this collar
The market-implied 1-standard-deviation range for PACK extends from approximately $4.22 on the downside to $7.40 on the upside. A PACK collar hedges an existing long PACK 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 PACK IV rank near 35.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PACK should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, PACK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PACK-specific events.
PACK 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. PACK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PACK alongside the broader basket even when PACK-specific fundamentals are unchanged. Always rebuild the position from current PACK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PACK?
- A collar on PACK is the collar strategy applied to PACK (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 PACK stock trading near $5.81, the strikes shown on this page are snapped to the nearest listed PACK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PACK 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 PACK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 95.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PACK collar?
- The breakeven for the PACK collar priced on this page is no defined breakeven on the modeled curve 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 PACK market-implied 1-standard-deviation expected move is approximately 27.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PACK?
- Collars on PACK hedge an existing long PACK 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 PACK implied volatility affect this collar?
- PACK ATM IV is at 95.20% with IV rank near 35.19%, 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.