SOC Collar Strategy

SOC (Sable Offshore Corp.), in the Energy sector, (Oil & Gas Drilling industry), listed on NYSE.

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. It operates through three platforms located offshore California and an onshore processing facility comprised of 16 federal leases across approximately 76,000 acres. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

SOC (Sable Offshore Corp.) trades in the Energy sector, specifically Oil & Gas Drilling, with a market capitalization of approximately $1.31B, a beta of -0.23 versus the broader market, a 52-week range of 3.72-35, average daily share volume of 5.4M, a public-listing history dating back to 2021, approximately 161 full-time employees. These structural characteristics shape how SOC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.23 indicates SOC 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 SOC?

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 SOC snapshot

As of May 15, 2026, spot at $15.13, ATM IV 119.78%, IV rank 29.44%, expected move 34.34%. The collar on SOC 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 SOC specifically: IV regime affects collar pricing on both sides; compressed SOC IV at 119.78% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 34.34% (roughly $5.20 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 SOC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOC should anchor to the underlying notional of $15.13 per share and to the trader's directional view on SOC stock.

SOC collar setup

The SOC 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 SOC near $15.13, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOC 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 SOC shares for the stock leg in covered calls and collars).

SOC collar risk and reward

Net Premium / Debit

-$1,515.00

Max Profit (per contract)

$85.00

Max Loss (per contract)

-$65.00

Breakeven(s)

$15.15

Risk / Reward Ratio

1.308

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.

SOC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SOC. 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 SOC

Collars on SOC hedge an existing long SOC 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.

SOC thesis for this collar

The market-implied 1-standard-deviation range for SOC extends from approximately $9.93 on the downside to $20.33 on the upside. A SOC collar hedges an existing long SOC 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 SOC IV rank near 29.44% 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 SOC at 119.78%. As a Energy name, SOC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOC-specific events.

SOC 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. SOC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SOC alongside the broader basket even when SOC-specific fundamentals are unchanged. Always rebuild the position from current SOC chain quotes before placing a trade.

Frequently asked questions

What is a collar on SOC?

A collar on SOC is the collar strategy applied to SOC (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 SOC stock trading near $15.13, the strikes shown on this page are snapped to the nearest listed SOC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.

How are SOC 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 SOC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 119.78%), the computed maximum profit is $85.00 per contract and the computed maximum loss is -$65.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SOC collar?

The breakeven for the SOC collar priced on this page is roughly $15.15 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 SOC market-implied 1-standard-deviation expected move is approximately 34.34%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

When should you consider a collar on SOC?

Collars on SOC hedge an existing long SOC 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 SOC implied volatility affect this collar?

SOC ATM IV is at 119.78% with IV rank near 29.44%, 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.

Related SOC analysis

• Collar strategy reference
• SOC options overview
• SOC P&L curve (full chain)
• SOC options chain
• SOC volatility skew