PRGS Collar Strategy
PRGS (Progress Software Corporation), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Progress Software Corporation develops, deploys, and manages business applications. The company offers OpenEdge, a development software, which builds multi-language applications for secure deployment across various platforms and devices, as well as cloud; developer tools that consists of components for user interface development for Web, mobile, desktop, chat, and AR/VR apps, as well as automated application testing and reporting tools; Sitefinity, a web content management and customer analytics platform; Corticon, a business rules management system that provides applications with decision automation and change process, and decision-related insight capabilities. It also offers DataDirect Connect, which provides data connectivity using industry-standard interfaces to connect applications running on various platforms; MOVEit that offers secure collaboration and automated file transfers of critical business information; Chef, an infrastructure automation platform to build, deploy, manage, and secure applications in multi-cloud and hybrid environments, and on-premises; and WhatsUp Gold, a network monitoring solution. In addition, the company provides Kemp LoadMaster, a load balancing solutions; and Kemp Flowmon network performance monitoring and diagnostic solutions that collect and analyze network telemetry from various sources. Further, it provides project management, implementation, custom development, programming, and other services, as well as web-enable applications; and training services. The company sells its products to end users, independent software vendors, original equipment manufacturers, and system integrators.
PRGS (Progress Software Corporation) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $1.11B, a trailing P/E of 13.08, a beta of 0.78 versus the broader market, a 52-week range of 23.82-65.5, average daily share volume of 1.1M, a public-listing history dating back to 1991, approximately 3K full-time employees. These structural characteristics shape how PRGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places PRGS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PRGS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PRGS?
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 PRGS snapshot
As of May 14, 2026, spot at $26.72, ATM IV 58.70%, IV rank 47.50%, expected move 16.83%. The collar on PRGS 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 217-day expiry.
Why this collar structure on PRGS specifically: IV regime affects collar pricing on both sides; mid-range PRGS IV at 58.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.83% (roughly $4.50 on the underlying). The 217-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PRGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRGS should anchor to the underlying notional of $26.72 per share and to the trader's directional view on PRGS stock.
PRGS collar setup
The PRGS 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 PRGS near $26.72, the first option leg uses a $27.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRGS chain at a 217-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 PRGS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.72 | long |
| Sell 1 | Call | $27.50 | $5.60 |
| Buy 1 | Put | $25.00 | $3.80 |
PRGS collar risk and reward
- Net Premium / Debit
- -$2,492.00
- Max Profit (per contract)
- $258.00
- Max Loss (per contract)
- $8.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- 32.250
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.
PRGS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PRGS. 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% | +$8.00 |
| $5.92 | -77.9% | +$8.00 |
| $11.82 | -55.7% | +$8.00 |
| $17.73 | -33.6% | +$8.00 |
| $23.64 | -11.5% | +$8.00 |
| $29.54 | +10.6% | +$258.00 |
| $35.45 | +32.7% | +$258.00 |
| $41.36 | +54.8% | +$258.00 |
| $47.26 | +76.9% | +$258.00 |
| $53.17 | +99.0% | +$258.00 |
When traders use collar on PRGS
Collars on PRGS hedge an existing long PRGS 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.
PRGS thesis for this collar
The market-implied 1-standard-deviation range for PRGS extends from approximately $22.22 on the downside to $31.22 on the upside. A PRGS collar hedges an existing long PRGS 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 PRGS IV rank near 47.50% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PRGS should anchor more to the directional view and the expected-move geometry. As a Technology name, PRGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRGS-specific events.
PRGS 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. PRGS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRGS alongside the broader basket even when PRGS-specific fundamentals are unchanged. Always rebuild the position from current PRGS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PRGS?
- A collar on PRGS is the collar strategy applied to PRGS (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 PRGS stock trading near $26.72, the strikes shown on this page are snapped to the nearest listed PRGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRGS 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 PRGS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.70%), the computed maximum profit is $258.00 per contract and the computed maximum loss is $8.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRGS collar?
- The breakeven for the PRGS 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 PRGS market-implied 1-standard-deviation expected move is approximately 16.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PRGS?
- Collars on PRGS hedge an existing long PRGS 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 PRGS implied volatility affect this collar?
- PRGS ATM IV is at 58.70% with IV rank near 47.50%, 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.