PBH Collar Strategy
PBH (Prestige Consumer Healthcare Inc.), in the Healthcare sector, (Medical - Distribution industry), listed on NYSE.
Prestige Consumer Healthcare Inc., together with its subsidiaries, develops, manufactures, markets, distributes, and sells over-the-counter (OTC) health and personal care products in the United States and internationally. The company operates in two segments, North American OTC Healthcare and International OTC Healthcare. It offers BC/Goody's analgesic powders, Boudreaux's Butt Paste baby ointments, Chloraseptic sore throat liquids and lozenges, Clear Eyes for eye redness relief, Compound W wart removals, DenTek for PEG oral care, Debrox ear wax removals, and Dramamine for motion sickness relief. The company also provides Fleet adult enemas/suppositories, Gaviscon upset stomach remedies, Luden's cough drops, Monistat vaginal anti-fungal, Nix lice/parasite treatments, Summer's Eve feminine hygiene, TheraTears dry eye relief, Fess nasal saline spray and washes, and Hydralyte for oral rehydration products. It sells its products through mass merchandisers; and drug, food, dollar, convenience, and club stores, as well as e-commerce channels. The company was formerly known as Prestige Brands Holdings, Inc. and changed its name to Prestige Consumer Healthcare Inc. in August 2018.
PBH (Prestige Consumer Healthcare Inc.) trades in the Healthcare sector, specifically Medical - Distribution, with a market capitalization of approximately $2.45B, a trailing P/E of 12.88, a beta of 0.40 versus the broader market, a 52-week range of 49.28-89.37, average daily share volume of 521K, a public-listing history dating back to 2005, approximately 600 full-time employees. These structural characteristics shape how PBH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates PBH 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 PBH?
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 PBH snapshot
As of May 15, 2026, spot at $46.94, ATM IV 24.30%, IV rank 7.96%, expected move 6.97%. The collar on PBH 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 PBH specifically: IV regime affects collar pricing on both sides; compressed PBH IV at 24.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.97% (roughly $3.27 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 PBH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PBH should anchor to the underlying notional of $46.94 per share and to the trader's directional view on PBH stock.
PBH collar setup
The PBH 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 PBH near $46.94, the first option leg uses a $49.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PBH 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 PBH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $46.94 | long |
| Sell 1 | Call | $49.29 | N/A |
| Buy 1 | Put | $44.59 | N/A |
PBH 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.
PBH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PBH. 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 PBH
Collars on PBH hedge an existing long PBH 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.
PBH thesis for this collar
The market-implied 1-standard-deviation range for PBH extends from approximately $43.67 on the downside to $50.21 on the upside. A PBH collar hedges an existing long PBH 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 PBH IV rank near 7.96% 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 PBH at 24.30%. As a Healthcare name, PBH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PBH-specific events.
PBH 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. PBH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PBH alongside the broader basket even when PBH-specific fundamentals are unchanged. Always rebuild the position from current PBH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PBH?
- A collar on PBH is the collar strategy applied to PBH (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 PBH stock trading near $46.94, the strikes shown on this page are snapped to the nearest listed PBH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PBH 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 PBH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.30%), 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 PBH collar?
- The breakeven for the PBH 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 PBH market-implied 1-standard-deviation expected move is approximately 6.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PBH?
- Collars on PBH hedge an existing long PBH 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 PBH implied volatility affect this collar?
- PBH ATM IV is at 24.30% with IV rank near 7.96%, 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.