SFBS Collar Strategy
SFBS (ServisFirst Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides various banking services to individual and corporate customers. It accepts demand, time, savings, and other deposits; checking, money market, and IRA accounts; and certificates of deposit. The company's loan products include commercial lending products, such as seasonal, bridge, and term loans for working capital, expansion of the business, acquisition of property, and plant and equipment, as well as commercial lines of credit; commercial real estate loans, construction and development loans, and residential real estate loans; and consumer loans, such as home equity loans, vehicle financing, loans secured by deposits, and secured and unsecured personal loans. It also offers other banking products and services comprising telephone and mobile banking, direct deposit, Internet banking, traveler's checks, safe deposit boxes, attorney trust accounts, automatic account transfers, automated teller machines, and debit card systems, as well as Visa credit cards; treasury and cash management services; wire transfer, night depository, banking-by-mail, and remote capture services; and correspondent banking services to other financial institutions. In addition, the company holds and manages participations in residential mortgages and commercial real estate loans originated by ServisFirst Bank in Alabama, Florida, Georgia, and Tennessee. It operates 23 full-service banking offices located in Alabama, Florida, Georgia, South Carolina, and Tennessee, as well as 2 loan production offices in Florida.
SFBS (ServisFirst Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.13B, a trailing P/E of 13.93, a beta of 0.90 versus the broader market, a 52-week range of 67.2-90.64, average daily share volume of 320K, a public-listing history dating back to 2014, approximately 636 full-time employees. These structural characteristics shape how SFBS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places SFBS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SFBS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SFBS?
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 SFBS snapshot
As of May 15, 2026, spot at $75.14, ATM IV 35.10%, IV rank 7.00%, expected move 10.06%. The collar on SFBS 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 SFBS specifically: IV regime affects collar pricing on both sides; compressed SFBS IV at 35.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.06% (roughly $7.56 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 SFBS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SFBS should anchor to the underlying notional of $75.14 per share and to the trader's directional view on SFBS stock.
SFBS collar setup
The SFBS 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 SFBS near $75.14, the first option leg uses a $78.90 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SFBS 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 SFBS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $75.14 | long |
| Sell 1 | Call | $78.90 | N/A |
| Buy 1 | Put | $71.38 | N/A |
SFBS 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.
SFBS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SFBS. 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 SFBS
Collars on SFBS hedge an existing long SFBS 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.
SFBS thesis for this collar
The market-implied 1-standard-deviation range for SFBS extends from approximately $67.58 on the downside to $82.70 on the upside. A SFBS collar hedges an existing long SFBS 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 SFBS IV rank near 7.00% 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 SFBS at 35.10%. As a Financial Services name, SFBS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SFBS-specific events.
SFBS 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. SFBS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SFBS alongside the broader basket even when SFBS-specific fundamentals are unchanged. Always rebuild the position from current SFBS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SFBS?
- A collar on SFBS is the collar strategy applied to SFBS (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 SFBS stock trading near $75.14, the strikes shown on this page are snapped to the nearest listed SFBS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SFBS 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 SFBS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.10%), 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 SFBS collar?
- The breakeven for the SFBS 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 SFBS market-implied 1-standard-deviation expected move is approximately 10.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SFBS?
- Collars on SFBS hedge an existing long SFBS 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 SFBS implied volatility affect this collar?
- SFBS ATM IV is at 35.10% with IV rank near 7.00%, 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.