PUBM Collar Strategy
PUBM (PubMatic, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
PubMatic, Inc. provides a cloud infrastructure platform that enables real-time programmatic advertising transactions for Internet content creators and advertisers worldwide. The company's solutions include Openwrap, a header bidding solution that provides enterprise-grade management and analytics tools; Openwrap OTT, a header bidding management solution for OTT; Openwrap SDK, a header bidding solution for in-app developers; private marketplace solutions; and media buyer consoles. In addition, it offers Real-Time Bidding (RTB) programmatic technologies, which provides various selling options across screens and ad formats; digital advertising inventory quality solutions to detect and filter out invalid traffic and other nefarious activity; Ad quality solutions targeting the reduction of security issues, quality issues, and performance issues; Identity Hub, an identity solution that allows for the use of any advertiser preferred user identifier in a scaled and privacy-compliant fashion; Audience Encore, an audience data platform; and cross-platform video, a sell side platform, which connects trusted video buyers to premium publishers. The company's platform supports an array of ad formats and digital device types, including mobile app, mobile web, desktop, display, video, over-the-top (OTT), connected television, and media. PubMatic, Inc. was incorporated in 2006 and is based in Redwood City, California.
PUBM (PubMatic, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $442.7M, a beta of 1.53 versus the broader market, a 52-week range of 6.15-13.88, average daily share volume of 767K, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how PUBM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.53 indicates PUBM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on PUBM?
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 PUBM snapshot
As of May 15, 2026, spot at $9.66, ATM IV 70.30%, IV rank 16.18%, expected move 20.15%. The collar on PUBM 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 PUBM specifically: IV regime affects collar pricing on both sides; compressed PUBM IV at 70.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.15% (roughly $1.95 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 PUBM expiries trade a higher absolute premium for lower per-day decay. Position sizing on PUBM should anchor to the underlying notional of $9.66 per share and to the trader's directional view on PUBM stock.
PUBM collar setup
The PUBM 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 PUBM near $9.66, the first option leg uses a $10.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PUBM 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 PUBM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.66 | long |
| Sell 1 | Call | $10.14 | N/A |
| Buy 1 | Put | $9.18 | N/A |
PUBM 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.
PUBM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PUBM. 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 PUBM
Collars on PUBM hedge an existing long PUBM 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.
PUBM thesis for this collar
The market-implied 1-standard-deviation range for PUBM extends from approximately $7.71 on the downside to $11.61 on the upside. A PUBM collar hedges an existing long PUBM 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 PUBM IV rank near 16.18% 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 PUBM at 70.30%. As a Technology name, PUBM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PUBM-specific events.
PUBM 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. PUBM positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PUBM alongside the broader basket even when PUBM-specific fundamentals are unchanged. Always rebuild the position from current PUBM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PUBM?
- A collar on PUBM is the collar strategy applied to PUBM (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 PUBM stock trading near $9.66, the strikes shown on this page are snapped to the nearest listed PUBM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PUBM 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 PUBM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.30%), 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 PUBM collar?
- The breakeven for the PUBM 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 PUBM market-implied 1-standard-deviation expected move is approximately 20.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PUBM?
- Collars on PUBM hedge an existing long PUBM 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 PUBM implied volatility affect this collar?
- PUBM ATM IV is at 70.30% with IV rank near 16.18%, 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.