PFBC Collar Strategy
PFBC (Preferred Bank), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Preferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals in the United States. The company accepts checking, savings, and money market deposit accounts; fixed-rate and fixed maturity retail, and non-retail certificates of deposit; and individual retirement accounts. It also provides real estate mortgage loans that are secured by retail, industrial, office, special purpose, and residential single and multi-family properties; real estate construction loans; and commercial loans comprising lines of credit for working capital, term loans for capital expenditures, and commercial and stand-by letters of credit; and SBA loans. In addition, the company offers trade finance services, including commercial and export letters of credit, import lines of credit, documentary collections, international wire transfers, acceptances/trust receipt financing products, export financing, documentary collections, and bills purchase programs. Further, it provides various high-wealth banking services to wealthy individuals residing in the Pacific Rim area; and remote deposit capture, and online and mobile banking services. Additionally, the company offers various banking services to physicians, accountants, attorneys, business managers, and other professionals; and safe deposit boxes, account reconciliation, courier service, and cash management services to the manufacturing, service, and distribution companies.
PFBC (Preferred Bank) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.08B, a trailing P/E of 8.18, a beta of 0.56 versus the broader market, a 52-week range of 79.6-103.05, average daily share volume of 105K, a public-listing history dating back to 1999, approximately 323 full-time employees. These structural characteristics shape how PFBC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.56 indicates PFBC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 8.18 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. PFBC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PFBC?
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 PFBC snapshot
As of May 15, 2026, spot at $90.65, ATM IV 32.50%, IV rank 2.68%, expected move 9.32%. The collar on PFBC 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 PFBC specifically: IV regime affects collar pricing on both sides; compressed PFBC IV at 32.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.32% (roughly $8.45 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 PFBC expiries trade a higher absolute premium for lower per-day decay. Position sizing on PFBC should anchor to the underlying notional of $90.65 per share and to the trader's directional view on PFBC stock.
PFBC collar setup
The PFBC 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 PFBC near $90.65, the first option leg uses a $95.18 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PFBC 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 PFBC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $90.65 | long |
| Sell 1 | Call | $95.18 | N/A |
| Buy 1 | Put | $86.12 | N/A |
PFBC 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.
PFBC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PFBC. 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 PFBC
Collars on PFBC hedge an existing long PFBC 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.
PFBC thesis for this collar
The market-implied 1-standard-deviation range for PFBC extends from approximately $82.20 on the downside to $99.10 on the upside. A PFBC collar hedges an existing long PFBC 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 PFBC IV rank near 2.68% 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 PFBC at 32.50%. As a Financial Services name, PFBC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PFBC-specific events.
PFBC 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. PFBC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PFBC alongside the broader basket even when PFBC-specific fundamentals are unchanged. Always rebuild the position from current PFBC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PFBC?
- A collar on PFBC is the collar strategy applied to PFBC (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 PFBC stock trading near $90.65, the strikes shown on this page are snapped to the nearest listed PFBC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PFBC 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 PFBC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.50%), 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 PFBC collar?
- The breakeven for the PFBC 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 PFBC market-implied 1-standard-deviation expected move is approximately 9.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PFBC?
- Collars on PFBC hedge an existing long PFBC 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 PFBC implied volatility affect this collar?
- PFBC ATM IV is at 32.50% with IV rank near 2.68%, 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.