PCT Collar Strategy
PCT (PureCycle Technologies, Inc.), in the Industrials sector, (Industrial - Pollution & Treatment Controls industry), listed on NASDAQ.
PureCycle Technologies, Inc. produces recycled polypropylene (PP). The company holds a license for restoring waste PP into ultra-pure recycled resin. Its recycling process separates color, odor, and other contaminants from plastic waste feedstock to transform it into virgin-like resin. The company was founded in 2015 and is headquartered in Orlando, Florida.
PCT (PureCycle Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Pollution & Treatment Controls, with a market capitalization of approximately $1.84B, a beta of 2.32 versus the broader market, a 52-week range of 4.93-17.37, average daily share volume of 4.6M, a public-listing history dating back to 2020, approximately 157 full-time employees. These structural characteristics shape how PCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.32 indicates PCT 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 PCT?
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 PCT snapshot
As of May 15, 2026, spot at $12.52, ATM IV 102.04%, IV rank 77.97%, expected move 29.25%. The collar on PCT 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 PCT specifically: IV regime affects collar pricing on both sides; elevated PCT IV at 102.04% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.25% (roughly $3.66 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 PCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on PCT should anchor to the underlying notional of $12.52 per share and to the trader's directional view on PCT stock.
PCT collar setup
The PCT 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 PCT near $12.52, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PCT 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 PCT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.52 | long |
| Sell 1 | Call | $13.00 | $1.23 |
| Buy 1 | Put | $12.00 | $1.13 |
PCT collar risk and reward
- Net Premium / Debit
- -$1,242.00
- Max Profit (per contract)
- $58.00
- Max Loss (per contract)
- -$42.00
- Breakeven(s)
- $12.42
- Risk / Reward Ratio
- 1.381
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.
PCT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PCT. 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% | -$42.00 |
| $2.78 | -77.8% | -$42.00 |
| $5.54 | -55.7% | -$42.00 |
| $8.31 | -33.6% | -$42.00 |
| $11.08 | -11.5% | -$42.00 |
| $13.85 | +10.6% | +$58.00 |
| $16.61 | +32.7% | +$58.00 |
| $19.38 | +54.8% | +$58.00 |
| $22.15 | +76.9% | +$58.00 |
| $24.91 | +99.0% | +$58.00 |
When traders use collar on PCT
Collars on PCT hedge an existing long PCT 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.
PCT thesis for this collar
The market-implied 1-standard-deviation range for PCT extends from approximately $8.86 on the downside to $16.18 on the upside. A PCT collar hedges an existing long PCT 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 PCT IV rank near 77.97% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PCT at 102.04%. As a Industrials name, PCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PCT-specific events.
PCT 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. PCT positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PCT alongside the broader basket even when PCT-specific fundamentals are unchanged. Always rebuild the position from current PCT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PCT?
- A collar on PCT is the collar strategy applied to PCT (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 PCT stock trading near $12.52, the strikes shown on this page are snapped to the nearest listed PCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PCT 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 PCT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 102.04%), the computed maximum profit is $58.00 per contract and the computed maximum loss is -$42.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PCT collar?
- The breakeven for the PCT collar priced on this page is roughly $12.42 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 PCT market-implied 1-standard-deviation expected move is approximately 29.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PCT?
- Collars on PCT hedge an existing long PCT 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 PCT implied volatility affect this collar?
- PCT ATM IV is at 102.04% with IV rank near 77.97%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.