PHG Collar Strategy
PHG (Koninklijke Philips N.V.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
Koninklijke Philips N.V. operates as a health technology company in North America and internationally. It operates through Diagnosis & Treatment Businesses, Connected Care Businesses, and Personal Health Businesses segments. The company provides diagnostic imaging solutions, includes magnetic resonance imaging, computed tomography (CT) systems, X-ray systems, and detector-based spectral CT solutions, as well as molecular and hybrid imaging solutions for nuclear medicine; integrated interventional systems; echography solutions focused on diagnosis, treatment planning and guidance for cardiology, general imaging, obstetrics/gynecology, and point-of-care applications; proprietary software to enable diagnostics and intervention; and enterprise diagnostic informatics products and services. It also offers acute patient management solutions; emergency care solutions; sleep and respiratory care solutions; and electronic medical record and care management solutions. In addition, the company provides power toothbrushes, brush heads, and interdental cleaning and teeth whitening products; infant feeding and digital parental solutions; and male grooming and beauty products and solutions. It has a strategic collaboration with Ibex Medical Analytics Ltd. to jointly promote the digital pathology and AI solutions to hospitals, health networks, and pathology laboratories worldwide, as well as a strategic partnership agreement with NICO.LAB.
PHG (Koninklijke Philips N.V.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $24.40B, a trailing P/E of 21.44, a beta of 0.92 versus the broader market, a 52-week range of 21.95-33.44, average daily share volume of 1.1M, a public-listing history dating back to 1980, approximately 67K full-time employees. These structural characteristics shape how PHG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places PHG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PHG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PHG?
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 PHG snapshot
As of May 15, 2026, spot at $25.24, ATM IV 29.90%, IV rank 3.69%, expected move 8.57%. The collar on PHG 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 63-day expiry.
Why this collar structure on PHG specifically: IV regime affects collar pricing on both sides; compressed PHG IV at 29.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.57% (roughly $2.16 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PHG expiries trade a higher absolute premium for lower per-day decay. Position sizing on PHG should anchor to the underlying notional of $25.24 per share and to the trader's directional view on PHG stock.
PHG collar setup
The PHG 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 PHG near $25.24, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PHG chain at a 63-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 PHG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.24 | long |
| Sell 1 | Call | $27.00 | $0.55 |
| Buy 1 | Put | $24.00 | $0.65 |
PHG collar risk and reward
- Net Premium / Debit
- -$2,534.00
- Max Profit (per contract)
- $166.00
- Max Loss (per contract)
- -$134.00
- Breakeven(s)
- $25.34
- Risk / Reward Ratio
- 1.239
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.
PHG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PHG. 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 | -100.0% | -$134.00 |
| $5.59 | -77.9% | -$134.00 |
| $11.17 | -55.7% | -$134.00 |
| $16.75 | -33.6% | -$134.00 |
| $22.33 | -11.5% | -$134.00 |
| $27.91 | +10.6% | +$166.00 |
| $33.49 | +32.7% | +$166.00 |
| $39.07 | +54.8% | +$166.00 |
| $44.65 | +76.9% | +$166.00 |
| $50.23 | +99.0% | +$166.00 |
When traders use collar on PHG
Collars on PHG hedge an existing long PHG 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.
PHG thesis for this collar
The market-implied 1-standard-deviation range for PHG extends from approximately $23.08 on the downside to $27.40 on the upside. A PHG collar hedges an existing long PHG 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 PHG IV rank near 3.69% 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 PHG at 29.90%. As a Healthcare name, PHG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PHG-specific events.
PHG 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. PHG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PHG alongside the broader basket even when PHG-specific fundamentals are unchanged. Always rebuild the position from current PHG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PHG?
- A collar on PHG is the collar strategy applied to PHG (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 PHG stock trading near $25.24, the strikes shown on this page are snapped to the nearest listed PHG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PHG 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 PHG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.90%), the computed maximum profit is $166.00 per contract and the computed maximum loss is -$134.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PHG collar?
- The breakeven for the PHG collar priced on this page is roughly $25.34 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 PHG market-implied 1-standard-deviation expected move is approximately 8.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PHG?
- Collars on PHG hedge an existing long PHG 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 PHG implied volatility affect this collar?
- PHG ATM IV is at 29.90% with IV rank near 3.69%, 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.