PESI Collar Strategy
PESI (Perma-Fix Environmental Services, Inc.), in the Industrials sector, (Waste Management industry), listed on NASDAQ.
Perma-Fix Environmental Services, Inc., operating through its various subsidiaries, functions as a U.S.-based company offering specialized expertise in environmental solutions and technology. Its operations are divided into three core divisions: Treatment, Services, and Medical. The Treatment division specializes in the handling, processing, and safe disposal of various waste types, including nuclear, low-level radioactive, mixed, hazardous, and non-hazardous materials, utilizing its dedicated treatment and storage facilities. Furthermore, this segment conducts research and development to devise and apply innovative methods for managing challenging waste streams. The Services division delivers extensive technical support, encompassing professional radiological assessments and site surveys for both government and commercial clients, alongside integrated occupational safety and health programs. Its offerings also include consulting, engineering, project and waste management, environmental remediation, and on-site decontamination and decommissioning (D&D) services, as well as providing specialized technical and managerial personnel.
PESI (Perma-Fix Environmental Services, Inc.) trades in the Industrials sector, specifically Waste Management, with a market capitalization of approximately $259.7M, a beta of 0.52 versus the broader market, a 52-week range of 8.02-16.5, average daily share volume of 226K, a public-listing history dating back to 1992, approximately 293 full-time employees. These structural characteristics shape how PESI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.52 indicates PESI 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 PESI?
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 PESI snapshot
As of June 26, 2026, spot at $11.98, ATM IV 102.70%, IV rank 21.11%, expected move 29.44%. The collar on PESI 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 21-day expiry.
Why this collar structure on PESI specifically: IV regime affects collar pricing on both sides; compressed PESI IV at 102.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.44% (roughly $3.53 on the underlying). The 21-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PESI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PESI should anchor to the underlying notional of $11.98 per share and to the trader's directional view on PESI stock.
PESI collar setup
The PESI 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 PESI near $11.98, the first option leg uses a $12.58 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PESI chain at a 21-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 PESI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.98 | long |
| Sell 1 | Call | $12.58 | N/A |
| Buy 1 | Put | $11.38 | N/A |
PESI 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.
PESI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PESI. 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 PESI
Collars on PESI hedge an existing long PESI 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.
PESI thesis for this collar
The market-implied 1-standard-deviation range for PESI extends from approximately $8.45 on the downside to $15.51 on the upside. A PESI collar hedges an existing long PESI 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 PESI IV rank near 21.11% 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 PESI at 102.70%. As a Industrials name, PESI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PESI-specific events.
PESI 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. PESI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PESI alongside the broader basket even when PESI-specific fundamentals are unchanged. Always rebuild the position from current PESI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PESI?
- A collar on PESI is the collar strategy applied to PESI (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 PESI stock trading near $11.98, the strikes shown on this page are snapped to the nearest listed PESI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PESI 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 PESI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 102.70%), 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 PESI collar?
- The breakeven for the PESI 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 PESI market-implied 1-standard-deviation expected move is approximately 29.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PESI?
- Collars on PESI hedge an existing long PESI 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 PESI implied volatility affect this collar?
- PESI ATM IV is at 102.70% with IV rank near 21.11%, 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.