PLMR Collar Strategy
PLMR (Palomar Holdings, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NASDAQ.
Palomar Holdings, Inc., an insurance holding company, provides specialty property insurance to residential and commercial customers. The company offers personal and commercial specialty property insurance products, including residential and commercial earthquake, commercial all risk, specialty homeowners, inland marine, Hawaii hurricane, and residential flood, as well as other products, such as assumed reinsurance, commercial flood, real estate error and omission, and real estate investor products. It markets and distributes its products through retail agents, wholesale brokers, program administrators, and carrier partnerships. The company was formerly known as GC Palomar Holdings. Palomar Holdings, Inc. was incorporated in 2013 and is headquartered in La Jolla, California.
PLMR (Palomar Holdings, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $2.87B, a trailing P/E of 14.58, a beta of 0.49 versus the broader market, a 52-week range of 107.51-175.85, average daily share volume of 261K, a public-listing history dating back to 2019, approximately 253 full-time employees. These structural characteristics shape how PLMR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.49 indicates PLMR 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 PLMR?
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 PLMR snapshot
As of May 15, 2026, spot at $110.63, ATM IV 36.20%, IV rank 29.64%, expected move 10.38%. The collar on PLMR 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 PLMR specifically: IV regime affects collar pricing on both sides; compressed PLMR IV at 36.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.38% (roughly $11.48 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 PLMR expiries trade a higher absolute premium for lower per-day decay. Position sizing on PLMR should anchor to the underlying notional of $110.63 per share and to the trader's directional view on PLMR stock.
PLMR collar setup
The PLMR 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 PLMR near $110.63, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PLMR 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 PLMR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $110.63 | long |
| Sell 1 | Call | $115.00 | $2.93 |
| Buy 1 | Put | $105.00 | $2.80 |
PLMR collar risk and reward
- Net Premium / Debit
- -$11,050.50
- Max Profit (per contract)
- $449.50
- Max Loss (per contract)
- -$550.50
- Breakeven(s)
- $110.51
- Risk / Reward Ratio
- 0.817
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.
PLMR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PLMR. 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% | -$550.50 |
| $24.47 | -77.9% | -$550.50 |
| $48.93 | -55.8% | -$550.50 |
| $73.39 | -33.7% | -$550.50 |
| $97.85 | -11.6% | -$550.50 |
| $122.31 | +10.6% | +$449.50 |
| $146.77 | +32.7% | +$449.50 |
| $171.23 | +54.8% | +$449.50 |
| $195.69 | +76.9% | +$449.50 |
| $220.15 | +99.0% | +$449.50 |
When traders use collar on PLMR
Collars on PLMR hedge an existing long PLMR 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.
PLMR thesis for this collar
The market-implied 1-standard-deviation range for PLMR extends from approximately $99.15 on the downside to $122.11 on the upside. A PLMR collar hedges an existing long PLMR 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 PLMR IV rank near 29.64% 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 PLMR at 36.20%. As a Financial Services name, PLMR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PLMR-specific events.
PLMR 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. PLMR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PLMR alongside the broader basket even when PLMR-specific fundamentals are unchanged. Always rebuild the position from current PLMR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PLMR?
- A collar on PLMR is the collar strategy applied to PLMR (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 PLMR stock trading near $110.63, the strikes shown on this page are snapped to the nearest listed PLMR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PLMR 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 PLMR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.20%), the computed maximum profit is $449.50 per contract and the computed maximum loss is -$550.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PLMR collar?
- The breakeven for the PLMR collar priced on this page is roughly $110.51 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 PLMR market-implied 1-standard-deviation expected move is approximately 10.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PLMR?
- Collars on PLMR hedge an existing long PLMR 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 PLMR implied volatility affect this collar?
- PLMR ATM IV is at 36.20% with IV rank near 29.64%, 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.