SES Collar Strategy
SES (SES AI Corporation), in the Consumer Cyclical sector, (Auto - Parts industry), listed on NYSE.
SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles and other applications. The company was founded in 2012 and is headquartered in Boston, Massachusetts.
SES (SES AI Corporation) trades in the Consumer Cyclical sector, specifically Auto - Parts, with a market capitalization of approximately $375.4M, a beta of 0.85 versus the broader market, a 52-week range of 0.8-3.73, average daily share volume of 9.3M, a public-listing history dating back to 2021, approximately 250 full-time employees. These structural characteristics shape how SES stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.85 places SES roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on SES?
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 SES snapshot
As of May 15, 2026, spot at $1.15, ATM IV 22.80%, IV rank 4.38%, expected move 6.54%. The collar on SES 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 SES specifically: IV regime affects collar pricing on both sides; compressed SES IV at 22.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.54% (roughly $0.08 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 SES expiries trade a higher absolute premium for lower per-day decay. Position sizing on SES should anchor to the underlying notional of $1.15 per share and to the trader's directional view on SES stock.
SES collar setup
The SES 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 SES near $1.15, the first option leg uses a $1.21 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SES 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 SES shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.15 | long |
| Sell 1 | Call | $1.21 | N/A |
| Buy 1 | Put | $1.09 | N/A |
SES 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.
SES collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SES. 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 SES
Collars on SES hedge an existing long SES 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.
SES thesis for this collar
The market-implied 1-standard-deviation range for SES extends from approximately $1.07 on the downside to $1.23 on the upside. A SES collar hedges an existing long SES 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 SES IV rank near 4.38% 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 SES at 22.80%. As a Consumer Cyclical name, SES options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SES-specific events.
SES 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. SES positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SES alongside the broader basket even when SES-specific fundamentals are unchanged. Always rebuild the position from current SES chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SES?
- A collar on SES is the collar strategy applied to SES (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 SES stock trading near $1.15, the strikes shown on this page are snapped to the nearest listed SES chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SES 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 SES collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.80%), 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 SES collar?
- The breakeven for the SES 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 SES market-implied 1-standard-deviation expected move is approximately 6.54%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SES?
- Collars on SES hedge an existing long SES 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 SES implied volatility affect this collar?
- SES ATM IV is at 22.80% with IV rank near 4.38%, 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.