SCSC Collar Strategy
SCSC (ScanSource, Inc.), in the Technology sector, (Technology Distributors industry), listed on NASDAQ.
ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. It operates through two segments, Specialty Technology Solutions and Modern Communications & Cloud. The Specialty Technology Solutions segment provides a portfolio of solutions primarily for enterprise mobile computing, data capture, barcode printing, point of sale (POS), payments, networking, electronic physical security, cyber security, and other technologies. This segment offers data capture and POS solutions to automate the collection, processing, and communication of information for commercial and industrial applications, including retail sales, distribution, shipping, inventory control, materials handling, warehouse management, and health care applications. It also provides electronic physical security products, such as identification, access control, video surveillance, intrusion-related, and wireless and networking infrastructure products. The Modern Communications & Cloud segment offers a portfolio of solutions primarily for communications technologies and services comprising voice, video conferencing, wireless, data networking, cable, unified communications and collaboration, cloud, and technology services, as well as IP networks and other solutions for various vertical markets, such as education, healthcare, and government.
SCSC (ScanSource, Inc.) trades in the Technology sector, specifically Technology Distributors, with a market capitalization of approximately $853.8M, a trailing P/E of 12.20, a beta of 1.28 versus the broader market, a 52-week range of 33.76-46.64, average daily share volume of 221K, a public-listing history dating back to 1994, approximately 2K full-time employees. These structural characteristics shape how SCSC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.28 places SCSC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on SCSC?
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 SCSC snapshot
As of May 15, 2026, spot at $42.52, ATM IV 35.60%, IV rank 3.80%, expected move 10.21%. The collar on SCSC 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 SCSC specifically: IV regime affects collar pricing on both sides; compressed SCSC IV at 35.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.21% (roughly $4.34 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 SCSC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCSC should anchor to the underlying notional of $42.52 per share and to the trader's directional view on SCSC stock.
SCSC collar setup
The SCSC 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 SCSC near $42.52, the first option leg uses a $44.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCSC 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 SCSC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $42.52 | long |
| Sell 1 | Call | $44.65 | N/A |
| Buy 1 | Put | $40.39 | N/A |
SCSC 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.
SCSC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SCSC. 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 SCSC
Collars on SCSC hedge an existing long SCSC 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.
SCSC thesis for this collar
The market-implied 1-standard-deviation range for SCSC extends from approximately $38.18 on the downside to $46.86 on the upside. A SCSC collar hedges an existing long SCSC 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 SCSC IV rank near 3.80% 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 SCSC at 35.60%. As a Technology name, SCSC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCSC-specific events.
SCSC 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. SCSC positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCSC alongside the broader basket even when SCSC-specific fundamentals are unchanged. Always rebuild the position from current SCSC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SCSC?
- A collar on SCSC is the collar strategy applied to SCSC (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 SCSC stock trading near $42.52, the strikes shown on this page are snapped to the nearest listed SCSC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SCSC 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 SCSC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.60%), 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 SCSC collar?
- The breakeven for the SCSC 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 SCSC market-implied 1-standard-deviation expected move is approximately 10.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SCSC?
- Collars on SCSC hedge an existing long SCSC 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 SCSC implied volatility affect this collar?
- SCSC ATM IV is at 35.60% with IV rank near 3.80%, 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.