PKOH Collar Strategy
PKOH (Park-Ohio Holdings Corp.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Park-Ohio Holdings Corp. is a global, diversified industrial company that delivers specialized supply chain management solutions, sophisticated capital equipment, and precision-manufactured components. Its operations span across the United States, Europe, Asia, Mexico, Canada, and other international territories. The company's activities are organized into three primary segments: Supply Technologies, Assembly Components, and Engineered Products. The Supply Technologies division provides extensive supply management services, encompassing everything from engineering and design consultation, part usage and cost analysis, and supplier vetting, to quality assurance, barcoding, product packaging and tracking, just-in-time and point-of-use delivery, electronic invoicing, and ongoing technical support. This segment also supplies spare and aftermarket parts, as well as various production components such as valves, fuel hose assemblies, electro-mechanical hardware, and steering components. Furthermore, it engineers and produces high-precision cold-formed and cold-extruded fasteners, including specific items like locknuts, SPAC nuts, and wheel hardware.
PKOH (Park-Ohio Holdings Corp.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $562.4M, a trailing P/E of 22.00, a beta of 1.20 versus the broader market, a 52-week range of 15.52-39.33, average daily share volume of 72K, a public-listing history dating back to 1973, approximately 6K full-time employees. These structural characteristics shape how PKOH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places PKOH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PKOH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PKOH?
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 PKOH snapshot
As of June 30, 2026, spot at $38.33, ATM IV 50.30%, IV rank 4.85%, expected move 14.42%. The collar on PKOH 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 17-day expiry.
Why this collar structure on PKOH specifically: IV regime affects collar pricing on both sides; compressed PKOH IV at 50.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.42% (roughly $5.53 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PKOH expiries trade a higher absolute premium for lower per-day decay. Position sizing on PKOH should anchor to the underlying notional of $38.33 per share and to the trader's directional view on PKOH stock.
PKOH collar setup
The PKOH 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 PKOH near $38.33, the first option leg uses a $40.25 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PKOH chain at a 17-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 PKOH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.33 | long |
| Sell 1 | Call | $40.25 | N/A |
| Buy 1 | Put | $36.41 | N/A |
PKOH 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.
PKOH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PKOH. 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 PKOH
Collars on PKOH hedge an existing long PKOH 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.
PKOH thesis for this collar
The market-implied 1-standard-deviation range for PKOH extends from approximately $32.80 on the downside to $43.86 on the upside. A PKOH collar hedges an existing long PKOH 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 PKOH IV rank near 4.85% 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 PKOH at 50.30%. As a Industrials name, PKOH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PKOH-specific events.
PKOH 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. PKOH positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PKOH alongside the broader basket even when PKOH-specific fundamentals are unchanged. Always rebuild the position from current PKOH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PKOH?
- A collar on PKOH is the collar strategy applied to PKOH (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 PKOH stock trading near $38.33, the strikes shown on this page are snapped to the nearest listed PKOH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PKOH 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 PKOH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.30%), 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 PKOH collar?
- The breakeven for the PKOH 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 PKOH market-implied 1-standard-deviation expected move is approximately 14.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PKOH?
- Collars on PKOH hedge an existing long PKOH 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 PKOH implied volatility affect this collar?
- PKOH ATM IV is at 50.30% with IV rank near 4.85%, 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.