PCG Collar Strategy
PCG (PG&E Corporation), in the Utilities sector, (Regulated Electric industry), listed on NYSE.
PG&E Corp. operates as a holding company, which engages in generation, transmission, and distribution of electricity and natural gas to customers. It specializes in energy, utility, power, gas, electricity, solar and sustainability. The company was founded in 1995 and is headquartered in Oakland, CA.
PCG (PG&E Corporation) trades in the Utilities sector, specifically Regulated Electric, with a market capitalization of approximately $36.56B, a trailing P/E of 12.36, a beta of 0.29 versus the broader market, a 52-week range of 12.97-19.16, average daily share volume of 22.1M, a public-listing history dating back to 1972, approximately 28K full-time employees. These structural characteristics shape how PCG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.29 indicates PCG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. PCG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PCG?
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 PCG snapshot
As of May 15, 2026, spot at $16.19, ATM IV 30.89%, IV rank 28.44%, expected move 8.86%. The collar on PCG 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 28-day expiry.
Why this collar structure on PCG specifically: IV regime affects collar pricing on both sides; compressed PCG IV at 30.89% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.86% (roughly $1.43 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PCG expiries trade a higher absolute premium for lower per-day decay. Position sizing on PCG should anchor to the underlying notional of $16.19 per share and to the trader's directional view on PCG stock.
PCG collar setup
The PCG 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 PCG near $16.19, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PCG chain at a 28-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 PCG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.19 | long |
| Sell 1 | Call | $17.00 | $0.27 |
| Buy 1 | Put | $15.50 | $0.35 |
PCG collar risk and reward
- Net Premium / Debit
- -$1,627.00
- Max Profit (per contract)
- $73.00
- Max Loss (per contract)
- -$77.00
- Breakeven(s)
- $16.27
- Risk / Reward Ratio
- 0.948
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.
PCG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PCG. 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 | -99.9% | -$77.00 |
| $3.59 | -77.8% | -$77.00 |
| $7.17 | -55.7% | -$77.00 |
| $10.75 | -33.6% | -$77.00 |
| $14.32 | -11.5% | -$77.00 |
| $17.90 | +10.6% | +$73.00 |
| $21.48 | +32.7% | +$73.00 |
| $25.06 | +54.8% | +$73.00 |
| $28.64 | +76.9% | +$73.00 |
| $32.22 | +99.0% | +$73.00 |
When traders use collar on PCG
Collars on PCG hedge an existing long PCG 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.
PCG thesis for this collar
The market-implied 1-standard-deviation range for PCG extends from approximately $14.76 on the downside to $17.62 on the upside. A PCG collar hedges an existing long PCG 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 PCG IV rank near 28.44% 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 PCG at 30.89%. As a Utilities name, PCG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PCG-specific events.
PCG 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. PCG positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PCG alongside the broader basket even when PCG-specific fundamentals are unchanged. Always rebuild the position from current PCG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PCG?
- A collar on PCG is the collar strategy applied to PCG (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 PCG stock trading near $16.19, the strikes shown on this page are snapped to the nearest listed PCG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PCG 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 PCG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.89%), the computed maximum profit is $73.00 per contract and the computed maximum loss is -$77.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PCG collar?
- The breakeven for the PCG collar priced on this page is roughly $16.27 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 PCG market-implied 1-standard-deviation expected move is approximately 8.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PCG?
- Collars on PCG hedge an existing long PCG 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 PCG implied volatility affect this collar?
- PCG ATM IV is at 30.89% with IV rank near 28.44%, 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.