SFST Collar Strategy
SFST (Southern First Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Southern First Bancshares, Inc. acts as the parent organization for Southern First Bank, providing a comprehensive range of banking and financial services to individuals and businesses in South Carolina, North Carolina, and Georgia. Its operations are structured into three primary divisions: Commercial and Retail Banking, Mortgage Banking, and Corporate Operations. The institution accepts various deposit products, including standard and commercial checking accounts, savings accounts, money market accounts, and long-term certificates of deposit. Its diverse loan offerings encompass commercial and construction real estate, business financing for sectors such as manufacturing, service, and professional services, alongside consumer real estate and home equity loans. Furthermore, it extends other consumer credit options like secured and unsecured installment loans and revolving lines of credit. Complementary services include online and mobile banking, cash management, safe deposit boxes, direct deposit, automated drafts, and bill payment.
SFST (Southern First Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $578.9M, a trailing P/E of 14.29, a beta of 0.69 versus the broader market, a 52-week range of 38.03-62.38, average daily share volume of 147K, a public-listing history dating back to 1999, approximately 297 full-time employees. These structural characteristics shape how SFST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.69 indicates SFST has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on SFST?
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 SFST snapshot
As of June 30, 2026, spot at $61.28, ATM IV 50.40%, IV rank 18.58%, expected move 14.45%. The collar on SFST 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 17-day expiry.
Why this collar structure on SFST specifically: IV regime affects collar pricing on both sides; compressed SFST IV at 50.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.45% (roughly $8.85 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SFST expiries trade a higher absolute premium for lower per-day decay. Position sizing on SFST should anchor to the underlying notional of $61.28 per share and to the trader's directional view on SFST stock.
SFST collar setup
The SFST 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 SFST near $61.28, the first option leg uses a $64.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SFST chain at a 17-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 SFST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $61.28 | long |
| Sell 1 | Call | $64.34 | N/A |
| Buy 1 | Put | $58.22 | N/A |
SFST 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.
SFST collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SFST. 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 SFST
Collars on SFST hedge an existing long SFST 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.
SFST thesis for this collar
The market-implied 1-standard-deviation range for SFST extends from approximately $52.43 on the downside to $70.13 on the upside. A SFST collar hedges an existing long SFST 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 SFST IV rank near 18.58% 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 SFST at 50.40%. As a Financial Services name, SFST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SFST-specific events.
SFST 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. SFST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SFST alongside the broader basket even when SFST-specific fundamentals are unchanged. Always rebuild the position from current SFST chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SFST?
- A collar on SFST is the collar strategy applied to SFST (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 SFST stock trading near $61.28, the strikes shown on this page are snapped to the nearest listed SFST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SFST 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 SFST collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.40%), 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 SFST collar?
- The breakeven for the SFST 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 SFST market-implied 1-standard-deviation expected move is approximately 14.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SFST?
- Collars on SFST hedge an existing long SFST 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 SFST implied volatility affect this collar?
- SFST ATM IV is at 50.40% with IV rank near 18.58%, 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.