SD Collar Strategy
SD (SandRidge Energy, Inc.), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NYSE.
SandRidge Energy, Inc. engages in the acquisition, development, and production of oil and natural gas primarily in the United States Mid-Continent. As of December 31, 2021, it had an interest in 817.0 net producing wells; and operated approximately 368,000 net leasehold acres in Oklahoma and Kansas, as well as total estimated proved reserves of 71.3 million barrels of oil equivalent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.
SD (SandRidge Energy, Inc.) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $549.3M, a trailing P/E of 7.22, a beta of 0.52 versus the broader market, a 52-week range of 9.518-18.45, average daily share volume of 408K, a public-listing history dating back to 2016, approximately 104 full-time employees. These structural characteristics shape how SD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.52 indicates SD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 7.22 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SD?
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 SD snapshot
As of May 15, 2026, spot at $15.33, ATM IV 37.10%, IV rank 42.09%, expected move 10.64%. The collar on SD 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 SD specifically: IV regime affects collar pricing on both sides; mid-range SD IV at 37.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $1.63 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 SD expiries trade a higher absolute premium for lower per-day decay. Position sizing on SD should anchor to the underlying notional of $15.33 per share and to the trader's directional view on SD stock.
SD collar setup
The SD 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 SD near $15.33, the first option leg uses a $16.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SD 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 SD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $15.33 | long |
| Sell 1 | Call | $16.10 | N/A |
| Buy 1 | Put | $14.56 | N/A |
SD 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.
SD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SD. 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 SD
Collars on SD hedge an existing long SD 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.
SD thesis for this collar
The market-implied 1-standard-deviation range for SD extends from approximately $13.70 on the downside to $16.96 on the upside. A SD collar hedges an existing long SD 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 SD IV rank near 42.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SD should anchor more to the directional view and the expected-move geometry. As a Energy name, SD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SD-specific events.
SD 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. SD positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SD alongside the broader basket even when SD-specific fundamentals are unchanged. Always rebuild the position from current SD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SD?
- A collar on SD is the collar strategy applied to SD (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 SD stock trading near $15.33, the strikes shown on this page are snapped to the nearest listed SD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SD 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 SD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), 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 SD collar?
- The breakeven for the SD 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 SD market-implied 1-standard-deviation expected move is approximately 10.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SD?
- Collars on SD hedge an existing long SD 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 SD implied volatility affect this collar?
- SD ATM IV is at 37.10% with IV rank near 42.09%, 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.