PI Collar Strategy
PI (Impinj, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Impinj, Inc. operates a cloud connectivity platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. Its platform, which comprises multiple product families, wirelessly connects individual items and delivers data about the connected items to business and consumer applications. The company's platform comprises endpoint ICs, a miniature radios-on-a-chip that attaches to a host item and includes a number to identify the item. Its platform also consists of systems products that comprise reader ICs, readers, and gateways to wirelessly provide power to and communicate bidirectionally with endpoint ICs on host items, as well as to read, write, authenticate, and engage the endpoint ICs on those items; and software and algorithms that enables its partners to deliver use cases, such as retail self-checkout and loss prevention, and warehouse pallet and carton tracking to end-users. The company primarily serves retail, supply chain and logistics, aviation, automotive, healthcare, industrial and manufacturing, sports, food, datacenter, travel, banking, and linen and uniform tracking sectors through distributors, system integrators, value-added resellers, and software solution partners. Impinj, Inc. was incorporated in 2000 and is headquartered in Seattle, Washington.
PI (Impinj, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $4.50B, a beta of 1.93 versus the broader market, a 52-week range of 87.36-247.064, average daily share volume of 579K, a public-listing history dating back to 2016, approximately 451 full-time employees. These structural characteristics shape how PI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.93 indicates PI 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 PI?
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 PI snapshot
As of May 15, 2026, spot at $140.62, ATM IV 70.90%, IV rank 33.45%, expected move 20.33%. The collar on PI 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 PI specifically: IV regime affects collar pricing on both sides; mid-range PI IV at 70.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.33% (roughly $28.58 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 PI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PI should anchor to the underlying notional of $140.62 per share and to the trader's directional view on PI stock.
PI collar setup
The PI 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 PI near $140.62, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PI 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 PI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $140.62 | long |
| Sell 1 | Call | $150.00 | $8.90 |
| Buy 1 | Put | $135.00 | $9.35 |
PI collar risk and reward
- Net Premium / Debit
- -$14,107.00
- Max Profit (per contract)
- $893.00
- Max Loss (per contract)
- -$607.00
- Breakeven(s)
- $141.07
- Risk / Reward Ratio
- 1.471
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.
PI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PI. 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% | -$607.00 |
| $31.10 | -77.9% | -$607.00 |
| $62.19 | -55.8% | -$607.00 |
| $93.28 | -33.7% | -$607.00 |
| $124.37 | -11.6% | -$607.00 |
| $155.46 | +10.6% | +$893.00 |
| $186.55 | +32.7% | +$893.00 |
| $217.65 | +54.8% | +$893.00 |
| $248.74 | +76.9% | +$893.00 |
| $279.83 | +99.0% | +$893.00 |
When traders use collar on PI
Collars on PI hedge an existing long PI 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.
PI thesis for this collar
The market-implied 1-standard-deviation range for PI extends from approximately $112.04 on the downside to $169.20 on the upside. A PI collar hedges an existing long PI 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 PI IV rank near 33.45% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PI should anchor more to the directional view and the expected-move geometry. As a Technology name, PI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PI-specific events.
PI 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. PI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PI alongside the broader basket even when PI-specific fundamentals are unchanged. Always rebuild the position from current PI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PI?
- A collar on PI is the collar strategy applied to PI (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 PI stock trading near $140.62, the strikes shown on this page are snapped to the nearest listed PI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PI 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 PI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.90%), the computed maximum profit is $893.00 per contract and the computed maximum loss is -$607.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PI collar?
- The breakeven for the PI collar priced on this page is roughly $141.07 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 PI market-implied 1-standard-deviation expected move is approximately 20.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PI?
- Collars on PI hedge an existing long PI 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 PI implied volatility affect this collar?
- PI ATM IV is at 70.90% with IV rank near 33.45%, 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.