SUI Collar Strategy
SUI (Sun Communities, Inc.), in the Real Estate sector, (REIT - Residential industry), listed on NYSE.
Sun Communities, Inc. is a REIT that, as of March 31, 2022, owned, operated, or had an interest in a portfolio of 603 developed MH, RV and marina properties comprising nearly 159,300 developed sites and over 45,700 wet slips and dry storage spaces in 39 states, Canada, Puerto Rico and the UK.
SUI (Sun Communities, Inc.) trades in the Real Estate sector, specifically REIT - Residential, with a market capitalization of approximately $15.32B, a trailing P/E of 10.87, a beta of 0.82 versus the broader market, a 52-week range of 115.53-137.85, average daily share volume of 836K, a public-listing history dating back to 1993, approximately 6K full-time employees. These structural characteristics shape how SUI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places SUI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.87 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. SUI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SUI?
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 SUI snapshot
As of May 15, 2026, spot at $120.56, ATM IV 23.90%, IV rank 3.52%, expected move 6.85%. The collar on SUI 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 SUI specifically: IV regime affects collar pricing on both sides; compressed SUI IV at 23.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $8.26 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 SUI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SUI should anchor to the underlying notional of $120.56 per share and to the trader's directional view on SUI stock.
SUI collar setup
The SUI 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 SUI near $120.56, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SUI 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 SUI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $120.56 | long |
| Sell 1 | Call | $125.00 | $1.88 |
| Buy 1 | Put | $115.00 | $1.05 |
SUI collar risk and reward
- Net Premium / Debit
- -$11,973.50
- Max Profit (per contract)
- $526.50
- Max Loss (per contract)
- -$473.50
- Breakeven(s)
- $119.74
- Risk / Reward Ratio
- 1.112
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.
SUI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SUI. 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 | -100.0% | -$473.50 |
| $26.67 | -77.9% | -$473.50 |
| $53.32 | -55.8% | -$473.50 |
| $79.98 | -33.7% | -$473.50 |
| $106.63 | -11.6% | -$473.50 |
| $133.29 | +10.6% | +$526.50 |
| $159.94 | +32.7% | +$526.50 |
| $186.60 | +54.8% | +$526.50 |
| $213.25 | +76.9% | +$526.50 |
| $239.91 | +99.0% | +$526.50 |
When traders use collar on SUI
Collars on SUI hedge an existing long SUI 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.
SUI thesis for this collar
The market-implied 1-standard-deviation range for SUI extends from approximately $112.30 on the downside to $128.82 on the upside. A SUI collar hedges an existing long SUI 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 SUI IV rank near 3.52% 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 SUI at 23.90%. As a Real Estate name, SUI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SUI-specific events.
SUI 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. SUI positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SUI alongside the broader basket even when SUI-specific fundamentals are unchanged. Always rebuild the position from current SUI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SUI?
- A collar on SUI is the collar strategy applied to SUI (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 SUI stock trading near $120.56, the strikes shown on this page are snapped to the nearest listed SUI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SUI 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 SUI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $526.50 per contract and the computed maximum loss is -$473.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SUI collar?
- The breakeven for the SUI collar priced on this page is roughly $119.74 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 SUI market-implied 1-standard-deviation expected move is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SUI?
- Collars on SUI hedge an existing long SUI 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 SUI implied volatility affect this collar?
- SUI ATM IV is at 23.90% with IV rank near 3.52%, 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.