STAG Collar Strategy
STAG (STAG Industrial, Inc.), in the Real Estate sector, (REIT - Industrial industry), listed on NYSE.
STAG Industrial, Inc. is a real estate investment company, which engages in acquiring, owning, and managing single-tenant, industrial real estate assets. It offers industrial real estate operating platform to real estate ownership. The company was founded by Benjamin S. Butcher on July 21, 2010 and is headquartered in Boston, MA.
STAG (STAG Industrial, Inc.) trades in the Real Estate sector, specifically REIT - Industrial, with a market capitalization of approximately $7.12B, a trailing P/E of 28.58, a beta of 0.97 versus the broader market, a 52-week range of 34.33-42.61, average daily share volume of 1.4M, a public-listing history dating back to 2011, approximately 93 full-time employees. These structural characteristics shape how STAG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places STAG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. STAG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on STAG?
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.
STAG snapshot
As of August 14, 2026, spot at $36.79, ATM IV 16.60%, IV rank 2.95%, expected move 4.76%. The collar on STAG below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on STAG specifically: IV regime affects collar pricing on both sides; compressed STAG IV at 16.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.76% (roughly $1.75 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on STAG should anchor to the underlying notional of $36.79 per share and to the trader's directional view on STAG stock.
STAG collar setup
The STAG 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 STAG at $36.79 on that close, the first option leg uses a $38.63 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STAG chain at a 35-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 STAG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $36.79 | long |
| Sell 1 | Call | $38.63 | N/A |
| Buy 1 | Put | $34.95 | N/A |
STAG 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.
STAG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on STAG. 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 STAG
Collars on STAG hedge an existing long STAG 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.
STAG thesis for this collar
The market-implied 1-standard-deviation range for STAG extends from approximately $35.04 on the downside to $38.54 on the upside. A STAG collar hedges an existing long STAG 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 STAG IV rank near 2.95% 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 STAG at 16.60%. As a Real Estate name, STAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STAG-specific events.
STAG 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. STAG positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STAG alongside the broader basket even when STAG-specific fundamentals are unchanged. Always rebuild the position from current STAG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on STAG?
- A collar on STAG is the collar strategy applied to STAG (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 STAG stock at $36.79 on the most recent close, the strikes shown on this page are snapped to the nearest listed STAG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are STAG 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 STAG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 16.60%), 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 STAG collar?
- The breakeven for the STAG collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The STAG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on STAG?
- Collars on STAG hedge an existing long STAG 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 STAG implied volatility affect this collar?
- STAG ATM IV is at 16.60% with IV rank near 2.95%, 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.