PRI Collar Strategy
PRI (Primerica, Inc.), in the Financial Services sector, (Insurance - Life industry), listed on NYSE.
Primerica, Inc., together with its subsidiaries, provides financial products to middle-income households in the United States and Canada. The company operates in four segments: Term Life Insurance; Investment and Savings Products; Senior Health; and Corporate and Other Distributed Products. The Term Life Insurance segment underwrites individual term life insurance products. The Investment and Savings Products segment provides mutual funds and various retirement plans, managed investments, variable and fixed annuities, and fixed indexed annuities. The Senior Health segment offers segregated funds; and medicare advantage and supplement products. The Corporate and Other Distributed Products segment provides mortgage loans; prepaid legal services that assist subscribers with legal matters, such as drafting wills, living wills and powers of attorney, trial defense, and motor vehicle-related matters; ID theft defense services; auto and homeowners' insurance; home automation solutions; and insurance products, including supplemental health, accidental death, and disability for small businesses.
PRI (Primerica, Inc.) trades in the Financial Services sector, specifically Insurance - Life, with a market capitalization of approximately $8.33B, a trailing P/E of 10.96, a beta of 0.91 versus the broader market, a 52-week range of 230.09-288.03, average daily share volume of 201K, a public-listing history dating back to 2010, approximately 2K full-time employees. These structural characteristics shape how PRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places PRI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.96 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. PRI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PRI?
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 PRI snapshot
As of May 14, 2026, spot at $268.69, ATM IV 20.80%, IV rank 1.35%, expected move 5.96%. The collar on PRI 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 PRI specifically: IV regime affects collar pricing on both sides; compressed PRI IV at 20.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.96% (roughly $16.02 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 PRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PRI should anchor to the underlying notional of $268.69 per share and to the trader's directional view on PRI stock.
PRI collar setup
The PRI 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 PRI near $268.69, the first option leg uses a $280.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PRI 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 PRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $268.69 | long |
| Sell 1 | Call | $280.00 | $4.25 |
| Buy 1 | Put | $260.00 | $2.70 |
PRI collar risk and reward
- Net Premium / Debit
- -$26,714.00
- Max Profit (per contract)
- $1,286.00
- Max Loss (per contract)
- -$714.00
- Breakeven(s)
- $267.14
- Risk / Reward Ratio
- 1.801
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.
PRI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PRI. 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% | -$714.00 |
| $59.42 | -77.9% | -$714.00 |
| $118.83 | -55.8% | -$714.00 |
| $178.23 | -33.7% | -$714.00 |
| $237.64 | -11.6% | -$714.00 |
| $297.05 | +10.6% | +$1,286.00 |
| $356.46 | +32.7% | +$1,286.00 |
| $415.86 | +54.8% | +$1,286.00 |
| $475.27 | +76.9% | +$1,286.00 |
| $534.68 | +99.0% | +$1,286.00 |
When traders use collar on PRI
Collars on PRI hedge an existing long PRI 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.
PRI thesis for this collar
The market-implied 1-standard-deviation range for PRI extends from approximately $252.67 on the downside to $284.71 on the upside. A PRI collar hedges an existing long PRI 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 PRI IV rank near 1.35% 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 PRI at 20.80%. As a Financial Services name, PRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PRI-specific events.
PRI 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. PRI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PRI alongside the broader basket even when PRI-specific fundamentals are unchanged. Always rebuild the position from current PRI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PRI?
- A collar on PRI is the collar strategy applied to PRI (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 PRI stock trading near $268.69, the strikes shown on this page are snapped to the nearest listed PRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PRI 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 PRI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.80%), the computed maximum profit is $1,286.00 per contract and the computed maximum loss is -$714.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PRI collar?
- The breakeven for the PRI collar priced on this page is roughly $267.14 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 PRI market-implied 1-standard-deviation expected move is approximately 5.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PRI?
- Collars on PRI hedge an existing long PRI 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 PRI implied volatility affect this collar?
- PRI ATM IV is at 20.80% with IV rank near 1.35%, 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.