SMHI Collar Strategy
SMHI (SEACOR Marine Holdings Inc.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
SEACOR Marine Holdings Inc. offers a global array of marine and logistical support services, primarily catering to offshore operations in the oil, natural gas, and wind energy sectors. Its fleet of specialized vessels performs a wide array of critical tasks: transporting essential cargo and personnel to offshore installations, including wind farms; managing complex anchor and mooring systems for drilling rigs, facilitating their precise positioning and relocation between different regions; and offering comprehensive support for construction, well work-over, routine maintenance, and decommissioning projects. The company also handles the deployment and recovery of underwater equipment vital for drilling, well installation, maintenance, inspection, and repair. Beyond operational functions, SEACOR Marine furnishes accommodations for technicians and specialists, alongside crucial safety support and emergency response capabilities. As of December 31, 2021, the company operated a fleet of 81 support and specialty vessels, comprising 60 owned or leased units, 20 joint-ventured vessels, and one managed on behalf of third parties. Its diverse client portfolio includes integrated oil companies, large and emerging independent oil and natural gas exploration and production firms, and contractors involved in windfarm operations and installation.
SMHI (SEACOR Marine Holdings Inc.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $204.3M, a beta of 1.11 versus the broader market, a 52-week range of 4.695-8.17, average daily share volume of 95K, a public-listing history dating back to 2017, approximately 1K full-time employees. These structural characteristics shape how SMHI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places SMHI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on SMHI?
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 SMHI snapshot
As of June 30, 2026, spot at $7.69, ATM IV 48.30%, IV rank 5.01%, expected move 13.85%. The collar on SMHI 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 SMHI specifically: IV regime affects collar pricing on both sides; compressed SMHI IV at 48.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.85% (roughly $1.06 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 SMHI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMHI should anchor to the underlying notional of $7.69 per share and to the trader's directional view on SMHI stock.
SMHI collar setup
The SMHI 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 SMHI near $7.69, the first option leg uses a $8.07 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMHI 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 SMHI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $7.69 | long |
| Sell 1 | Call | $8.07 | N/A |
| Buy 1 | Put | $7.31 | N/A |
SMHI 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.
SMHI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SMHI. 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 SMHI
Collars on SMHI hedge an existing long SMHI 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.
SMHI thesis for this collar
The market-implied 1-standard-deviation range for SMHI extends from approximately $6.63 on the downside to $8.75 on the upside. A SMHI collar hedges an existing long SMHI 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 SMHI IV rank near 5.01% 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 SMHI at 48.30%. As a Industrials name, SMHI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMHI-specific events.
SMHI 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. SMHI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SMHI alongside the broader basket even when SMHI-specific fundamentals are unchanged. Always rebuild the position from current SMHI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SMHI?
- A collar on SMHI is the collar strategy applied to SMHI (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 SMHI stock trading near $7.69, the strikes shown on this page are snapped to the nearest listed SMHI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SMHI 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 SMHI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.30%), 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 SMHI collar?
- The breakeven for the SMHI 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 SMHI market-implied 1-standard-deviation expected move is approximately 13.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SMHI?
- Collars on SMHI hedge an existing long SMHI 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 SMHI implied volatility affect this collar?
- SMHI ATM IV is at 48.30% with IV rank near 5.01%, 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.