SKYT Collar Strategy
SKYT (SkyWater Technology, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
SkyWater Technology, Inc., together with its subsidiaries, provides semiconductor development and manufacturing services. The company offers engineering and process development support services to co-create technologies with customers; and semiconductor manufacturing services for various silicon-based analog and mixed-signal, power discrete, microelectromechanical systems, and rad-hard integrated circuits. It serves customers operating in the computation, aerospace and defense, automotive and transportation, bio-health, consumer, and industrial/internet of things industries. The company was incorporated in 2017 and is headquartered in Bloomington, Minnesota.
SKYT (SkyWater Technology, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $1.72B, a trailing P/E of 14.94, a beta of 3.30 versus the broader market, a 52-week range of 7.72-36.268, average daily share volume of 1.1M, a public-listing history dating back to 2021, approximately 702 full-time employees. These structural characteristics shape how SKYT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.30 indicates SKYT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on SKYT?
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 SKYT snapshot
As of May 15, 2026, spot at $34.70, ATM IV 44.09%, IV rank 17.45%, expected move 12.64%. The collar on SKYT 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 28-day expiry.
Why this collar structure on SKYT specifically: IV regime affects collar pricing on both sides; compressed SKYT IV at 44.09% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.64% (roughly $4.39 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SKYT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKYT should anchor to the underlying notional of $34.70 per share and to the trader's directional view on SKYT stock.
SKYT collar setup
The SKYT 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 SKYT near $34.70, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKYT chain at a 28-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 SKYT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $34.70 | long |
| Sell 1 | Call | $36.00 | $1.53 |
| Buy 1 | Put | $33.00 | $1.23 |
SKYT collar risk and reward
- Net Premium / Debit
- -$3,440.00
- Max Profit (per contract)
- $160.00
- Max Loss (per contract)
- -$140.00
- Breakeven(s)
- $34.40
- Risk / Reward Ratio
- 1.143
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.
SKYT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SKYT. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$140.00 |
| $7.68 | -77.9% | -$140.00 |
| $15.35 | -55.8% | -$140.00 |
| $23.02 | -33.6% | -$140.00 |
| $30.70 | -11.5% | -$140.00 |
| $38.37 | +10.6% | +$160.00 |
| $46.04 | +32.7% | +$160.00 |
| $53.71 | +54.8% | +$160.00 |
| $61.38 | +76.9% | +$160.00 |
| $69.05 | +99.0% | +$160.00 |
When traders use collar on SKYT
Collars on SKYT hedge an existing long SKYT 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.
SKYT thesis for this collar
The market-implied 1-standard-deviation range for SKYT extends from approximately $30.31 on the downside to $39.09 on the upside. A SKYT collar hedges an existing long SKYT 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 SKYT IV rank near 17.45% 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 SKYT at 44.09%. As a Technology name, SKYT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKYT-specific events.
SKYT 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. SKYT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SKYT alongside the broader basket even when SKYT-specific fundamentals are unchanged. Always rebuild the position from current SKYT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SKYT?
- A collar on SKYT is the collar strategy applied to SKYT (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 SKYT stock trading near $34.70, the strikes shown on this page are snapped to the nearest listed SKYT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SKYT 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 SKYT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 44.09%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$140.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SKYT collar?
- The breakeven for the SKYT collar priced on this page is roughly $34.40 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 SKYT market-implied 1-standard-deviation expected move is approximately 12.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SKYT?
- Collars on SKYT hedge an existing long SKYT 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 SKYT implied volatility affect this collar?
- SKYT ATM IV is at 44.09% with IV rank near 17.45%, 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.