PCT Collar Strategy
PCT (PureCycle Technologies, Inc.), in the Industrials sector, (Industrial - Pollution & Treatment Controls industry), listed on NASDAQ.
PureCycle Technologies, Inc. focuses on manufacturing high-quality, recycled polypropylene (PP). The company employs a proprietary and licensed technology that converts discarded PP materials into an exceptionally pure, regenerated resin. Through an advanced purification process, they meticulously eliminate color, odor, and other unwanted substances from plastic waste feedstock, thereby producing a resin comparable to newly manufactured virgin plastic. Established in 2015, the company maintains its corporate headquarters in Orlando, Florida.
PCT (PureCycle Technologies, Inc.) trades in the Industrials sector, specifically Industrial - Pollution & Treatment Controls, with a market capitalization of approximately $1.56B, a beta of 2.46 versus the broader market, a 52-week range of 4.93-17.37, average daily share volume of 5.4M, 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 2.46 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 June 30, 2026, spot at $8.11, ATM IV 85.93%, IV rank 55.94%, expected move 24.64%. 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 31-day expiry.
Why this collar structure on PCT specifically: IV regime affects collar pricing on both sides; mid-range PCT IV at 85.93% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 24.64% (roughly $2.00 on the underlying). The 31-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 $8.11 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 $8.11, the first option leg uses a $8.50 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 31-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 | $8.11 | long |
| Sell 1 | Call | $8.50 | $0.63 |
| Buy 1 | Put | $7.50 | $0.55 |
PCT collar risk and reward
- Net Premium / Debit
- -$803.50
- Max Profit (per contract)
- $46.50
- Max Loss (per contract)
- -$53.50
- Breakeven(s)
- $8.04
- 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.
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% | -$53.50 |
| $1.80 | -77.8% | -$53.50 |
| $3.59 | -55.7% | -$53.50 |
| $5.39 | -33.6% | -$53.50 |
| $7.18 | -11.5% | -$53.50 |
| $8.97 | +10.6% | +$46.50 |
| $10.76 | +32.7% | +$46.50 |
| $12.55 | +54.8% | +$46.50 |
| $14.35 | +76.9% | +$46.50 |
| $16.14 | +99.0% | +$46.50 |
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 $6.11 on the downside to $10.11 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 55.94% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PCT should anchor more to the directional view and the expected-move geometry. 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 $8.11, 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 85.93%), the computed maximum profit is $46.50 per contract and the computed maximum loss is -$53.50 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 $8.04 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 24.64%; 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 85.93% with IV rank near 55.94%, 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.