PATK Collar Strategy
PATK (Patrick Industries, Inc.), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NASDAQ.
Patrick Industries, Inc. manufactures and distributes components, building products, and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, China, and Canada. Its Manufacturing segment manufactures and sells furniture, shelving, wall, countertop, and cabinet product; cabinet door, fiberglass bath fixture, and tile system; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum product; fiberglass and plastic components; RV painting; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinet; polymer-based flooring product; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile moulding; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat covers, tower, top, and frame; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite part, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panel, drywall and finishing product, electronic, audio system component, appliance, marine accessories, wiring product, electrical and plumbing product, fiber reinforced polyester product; cement siding product, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring product, shower door, furniture, fireplace and surround, interior and exterior lighting product, and other products. This segment also offers transportation and logistics service. The company was founded in 1959 and is headquartered in Elkhart, Indiana.
PATK (Patrick Industries, Inc.) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $3.14B, a trailing P/E of 22.77, a beta of 1.11 versus the broader market, a 52-week range of 82.24-148.5, average daily share volume of 465K, a public-listing history dating back to 1980, approximately 10K full-time employees. These structural characteristics shape how PATK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places PATK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PATK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PATK?
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 PATK snapshot
As of May 15, 2026, spot at $91.15, ATM IV 48.40%, IV rank 7.61%, expected move 13.88%. The collar on PATK 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 PATK specifically: IV regime affects collar pricing on both sides; compressed PATK IV at 48.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.88% (roughly $12.65 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 PATK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PATK should anchor to the underlying notional of $91.15 per share and to the trader's directional view on PATK stock.
PATK collar setup
The PATK 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 PATK near $91.15, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PATK 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 PATK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $91.15 | long |
| Sell 1 | Call | $95.00 | $3.60 |
| Buy 1 | Put | $85.00 | $2.80 |
PATK collar risk and reward
- Net Premium / Debit
- -$9,035.00
- Max Profit (per contract)
- $465.00
- Max Loss (per contract)
- -$535.00
- Breakeven(s)
- $90.35
- Risk / Reward Ratio
- 0.869
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.
PATK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PATK. 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% | -$535.00 |
| $20.16 | -77.9% | -$535.00 |
| $40.32 | -55.8% | -$535.00 |
| $60.47 | -33.7% | -$535.00 |
| $80.62 | -11.6% | -$535.00 |
| $100.77 | +10.6% | +$465.00 |
| $120.93 | +32.7% | +$465.00 |
| $141.08 | +54.8% | +$465.00 |
| $161.23 | +76.9% | +$465.00 |
| $181.38 | +99.0% | +$465.00 |
When traders use collar on PATK
Collars on PATK hedge an existing long PATK 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.
PATK thesis for this collar
The market-implied 1-standard-deviation range for PATK extends from approximately $78.50 on the downside to $103.80 on the upside. A PATK collar hedges an existing long PATK 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 PATK IV rank near 7.61% 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 PATK at 48.40%. As a Consumer Cyclical name, PATK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PATK-specific events.
PATK 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. PATK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PATK alongside the broader basket even when PATK-specific fundamentals are unchanged. Always rebuild the position from current PATK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PATK?
- A collar on PATK is the collar strategy applied to PATK (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 PATK stock trading near $91.15, the strikes shown on this page are snapped to the nearest listed PATK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PATK 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 PATK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.40%), the computed maximum profit is $465.00 per contract and the computed maximum loss is -$535.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PATK collar?
- The breakeven for the PATK collar priced on this page is roughly $90.35 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 PATK market-implied 1-standard-deviation expected move is approximately 13.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PATK?
- Collars on PATK hedge an existing long PATK 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 PATK implied volatility affect this collar?
- PATK ATM IV is at 48.40% with IV rank near 7.61%, 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.