SOUN Collar Strategy
SOUN (SoundHound AI, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
SoundHound AI, Inc. develops independent voice artificial intelligence (AI) platform that enables businesses across industries to deliver high-quality conversational experiences to their customers. Its products include Houndify platform that offers a suite of Houndify tools to help brands build conversational voice assistants, such as automatic speech recognition, natural language understanding, wake words, custom domains, text-to-speech, and embedded voice solutions The company is headquartered in Santa Clara, California.
SOUN (SoundHound AI, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $3.59B, a beta of 2.76 versus the broader market, a 52-week range of 5.83-22.17, average daily share volume of 28.3M, a public-listing history dating back to 2022, approximately 842 full-time employees. These structural characteristics shape how SOUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.76 indicates SOUN 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 SOUN?
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 SOUN snapshot
As of May 15, 2026, spot at $8.48, ATM IV 76.05%, IV rank 19.24%, expected move 21.80%. The collar on SOUN 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 SOUN specifically: IV regime affects collar pricing on both sides; compressed SOUN IV at 76.05% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.80% (roughly $1.85 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 SOUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOUN should anchor to the underlying notional of $8.48 per share and to the trader's directional view on SOUN stock.
SOUN collar setup
The SOUN 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 SOUN near $8.48, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOUN 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 SOUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $8.48 | long |
| Sell 1 | Call | $9.00 | $0.48 |
| Buy 1 | Put | $8.00 | $0.49 |
SOUN collar risk and reward
- Net Premium / Debit
- -$849.50
- Max Profit (per contract)
- $50.50
- Max Loss (per contract)
- -$49.50
- Breakeven(s)
- $8.50
- Risk / Reward Ratio
- 1.020
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.
SOUN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SOUN. 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 | -99.9% | -$49.50 |
| $1.88 | -77.8% | -$49.50 |
| $3.76 | -55.7% | -$49.50 |
| $5.63 | -33.6% | -$49.50 |
| $7.51 | -11.5% | -$49.50 |
| $9.38 | +10.6% | +$50.50 |
| $11.25 | +32.7% | +$50.50 |
| $13.13 | +54.8% | +$50.50 |
| $15.00 | +76.9% | +$50.50 |
| $16.87 | +99.0% | +$50.50 |
When traders use collar on SOUN
Collars on SOUN hedge an existing long SOUN 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.
SOUN thesis for this collar
The market-implied 1-standard-deviation range for SOUN extends from approximately $6.63 on the downside to $10.33 on the upside. A SOUN collar hedges an existing long SOUN 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 SOUN IV rank near 19.24% 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 SOUN at 76.05%. As a Technology name, SOUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOUN-specific events.
SOUN 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. SOUN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SOUN alongside the broader basket even when SOUN-specific fundamentals are unchanged. Always rebuild the position from current SOUN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SOUN?
- A collar on SOUN is the collar strategy applied to SOUN (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 SOUN stock trading near $8.48, the strikes shown on this page are snapped to the nearest listed SOUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SOUN 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 SOUN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 76.05%), the computed maximum profit is $50.50 per contract and the computed maximum loss is -$49.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SOUN collar?
- The breakeven for the SOUN collar priced on this page is roughly $8.50 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 SOUN market-implied 1-standard-deviation expected move is approximately 21.80%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SOUN?
- Collars on SOUN hedge an existing long SOUN 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 SOUN implied volatility affect this collar?
- SOUN ATM IV is at 76.05% with IV rank near 19.24%, 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.