SMPL Collar Strategy
SMPL (The Simply Good Foods Company), in the Consumer Defensive sector, (Packaged Foods industry), listed on NASDAQ.
The Simply Good Foods Company operates as a consumer packaged food and beverage company in North America and internationally. The company develops, markets, and sells snacks and meal replacements. It offers protein bars, ready-to-drink shakes, sweet and salty snacks, cookies, pizza, protein chips, recipes, and confectionery products, as well as licensed frozen meals under the Atkins, Atkins Endulge, and Quest brand names. The company distributes its products to various retail channels, such as mass merchandise, grocery and drug channels, club stores, convenience stores, gas stations, and other channels. It also sells its products through e-commerce channels, including atkins.com, questnutrition.com, and amazon.com. The Simply Good Foods Company is headquartered in Denver, Colorado.
SMPL (The Simply Good Foods Company) trades in the Consumer Defensive sector, specifically Packaged Foods, with a market capitalization of approximately $1.01B, a beta of 0.21 versus the broader market, a 52-week range of 10.21-36.61, average daily share volume of 2.8M, a public-listing history dating back to 2017, approximately 316 full-time employees. These structural characteristics shape how SMPL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.21 indicates SMPL 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 SMPL?
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 SMPL snapshot
As of May 15, 2026, spot at $11.52, ATM IV 48.90%, IV rank 7.93%, expected move 14.02%. The collar on SMPL 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 SMPL specifically: IV regime affects collar pricing on both sides; compressed SMPL IV at 48.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $1.62 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 SMPL expiries trade a higher absolute premium for lower per-day decay. Position sizing on SMPL should anchor to the underlying notional of $11.52 per share and to the trader's directional view on SMPL stock.
SMPL collar setup
The SMPL 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 SMPL near $11.52, the first option leg uses a $12.10 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SMPL 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 SMPL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.52 | long |
| Sell 1 | Call | $12.10 | N/A |
| Buy 1 | Put | $10.94 | N/A |
SMPL 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.
SMPL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SMPL. 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 SMPL
Collars on SMPL hedge an existing long SMPL 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.
SMPL thesis for this collar
The market-implied 1-standard-deviation range for SMPL extends from approximately $9.90 on the downside to $13.14 on the upside. A SMPL collar hedges an existing long SMPL 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 SMPL IV rank near 7.93% 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 SMPL at 48.90%. As a Consumer Defensive name, SMPL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SMPL-specific events.
SMPL 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. SMPL positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SMPL alongside the broader basket even when SMPL-specific fundamentals are unchanged. Always rebuild the position from current SMPL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SMPL?
- A collar on SMPL is the collar strategy applied to SMPL (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 SMPL stock trading near $11.52, the strikes shown on this page are snapped to the nearest listed SMPL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SMPL 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 SMPL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), 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 SMPL collar?
- The breakeven for the SMPL 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 SMPL market-implied 1-standard-deviation expected move is approximately 14.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SMPL?
- Collars on SMPL hedge an existing long SMPL 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 SMPL implied volatility affect this collar?
- SMPL ATM IV is at 48.90% with IV rank near 7.93%, 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.