PNFP Collar Strategy
PNFP (Pinnacle Financial Partners, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Pinnacle Financial Partners, Inc. functions as a bank holding company, overseeing Pinnacle Bank, which delivers a comprehensive range of banking solutions and services across the United States. The company facilitates various types of deposit accounts for its clients, including savings accounts, standard checking accounts (both interest-bearing and noninterest-bearing), money market accounts, and certificates of deposit. Its lending portfolio is extensive, covering commercial loans for purposes like equipment financing and working capital, along with commercial real estate loans for investment properties and business ventures backed by real estate. For individual clients, Pinnacle Bank offers secured and unsecured installment loans, term loans, lines of credit, residential first mortgage loans, and home equity loans and lines of credit. Additionally, it issues credit cards for both consumers and businesses. Beyond traditional banking, Pinnacle Financial Partners provides a suite of securities and other financial offerings, diverse investment products, and comprehensive brokerage and investment advisory programs.
PNFP (Pinnacle Financial Partners, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $16.13B, a trailing P/E of 19.66, a beta of 1.02 versus the broader market, a 52-week range of 81.08-110.33, average daily share volume of 1.3M, a public-listing history dating back to 2000, approximately 8K full-time employees. These structural characteristics shape how PNFP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places PNFP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PNFP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PNFP?
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.
PNFP snapshot
As of August 14, 2026, spot at $107.98, ATM IV 23.30%, IV rank 1.57%, expected move 6.68%. The collar on PNFP below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on PNFP specifically: IV regime affects collar pricing on both sides; compressed PNFP IV at 23.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.68% (roughly $7.21 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PNFP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PNFP should anchor to the underlying notional of $107.98 per share and to the trader's directional view on PNFP stock.
PNFP collar setup
The PNFP collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PNFP at $107.98 on that close, 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 PNFP chain at a 35-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 PNFP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $107.98 | long |
| Sell 1 | Call | $115.00 | $0.95 |
| Buy 1 | Put | $105.00 | $1.80 |
PNFP collar risk and reward
- Net Premium / Debit
- -$10,883.00
- Max Profit (per contract)
- $617.00
- Max Loss (per contract)
- -$383.00
- Breakeven(s)
- $108.83
- Risk / Reward Ratio
- 1.611
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.
PNFP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PNFP. 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% | -$383.00 |
| $23.88 | -77.9% | -$383.00 |
| $47.76 | -55.8% | -$383.00 |
| $71.63 | -33.7% | -$383.00 |
| $95.51 | -11.6% | -$383.00 |
| $119.38 | +10.6% | +$617.00 |
| $143.25 | +32.7% | +$617.00 |
| $167.13 | +54.8% | +$617.00 |
| $191.00 | +76.9% | +$617.00 |
| $214.87 | +99.0% | +$617.00 |
When traders use collar on PNFP
Collars on PNFP hedge an existing long PNFP 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.
PNFP thesis for this collar
The market-implied 1-standard-deviation range for PNFP extends from approximately $100.77 on the downside to $115.19 on the upside. A PNFP collar hedges an existing long PNFP 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 PNFP IV rank near 1.57% 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 PNFP at 23.30%. As a Financial Services name, PNFP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PNFP-specific events.
PNFP 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. PNFP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PNFP alongside the broader basket even when PNFP-specific fundamentals are unchanged. Always rebuild the position from current PNFP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PNFP?
- A collar on PNFP is the collar strategy applied to PNFP (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 PNFP stock at $107.98 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PNFP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PNFP 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 PNFP collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 23.30%), the computed maximum profit is $617.00 per contract and the computed maximum loss is -$383.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PNFP collar?
- The breakeven for the PNFP collar priced on this page is roughly $108.83 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PNFP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PNFP?
- Collars on PNFP hedge an existing long PNFP 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 PNFP implied volatility affect this collar?
- PNFP ATM IV is at 23.30% with IV rank near 1.57%, 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.