SWIM Collar Strategy
SWIM (Latham Group, Inc.), in the Industrials sector, (Construction industry), listed on NASDAQ.
Latham Group, Inc. is a company that focuses on the creation, manufacturing, and distribution of residential in-ground swimming pools. Its market presence spans North America, Australia, and New Zealand. The firm's product range encompasses various types of in-ground swimming pools, along with essential accompanying items like pool covers and liners. Originally incorporated in 2018 under the name Latham Topco, Inc., the company officially adopted its current identity, Latham Group, Inc., in March 2021. Its corporate headquarters are situated in Latham, New York.
SWIM (Latham Group, Inc.) trades in the Industrials sector, specifically Construction, with a market capitalization of approximately $752.6M, a trailing P/E of 87.62, a beta of 1.66 versus the broader market, a 52-week range of 4.64-8.966, average daily share volume of 738K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how SWIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.66 indicates SWIM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 87.62 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on SWIM?
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 SWIM snapshot
As of June 30, 2026, spot at $6.46, ATM IV 103.00%, IV rank 19.88%, expected move 29.53%. The collar on SWIM 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 17-day expiry.
Why this collar structure on SWIM specifically: IV regime affects collar pricing on both sides; compressed SWIM IV at 103.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.53% (roughly $1.91 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SWIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SWIM should anchor to the underlying notional of $6.46 per share and to the trader's directional view on SWIM stock.
SWIM collar setup
The SWIM 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 SWIM near $6.46, the first option leg uses a $6.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SWIM chain at a 17-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 SWIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.46 | long |
| Sell 1 | Call | $6.78 | N/A |
| Buy 1 | Put | $6.14 | N/A |
SWIM 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.
SWIM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SWIM. 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 SWIM
Collars on SWIM hedge an existing long SWIM 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.
SWIM thesis for this collar
The market-implied 1-standard-deviation range for SWIM extends from approximately $4.55 on the downside to $8.37 on the upside. A SWIM collar hedges an existing long SWIM 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 SWIM IV rank near 19.88% 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 SWIM at 103.00%. As a Industrials name, SWIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SWIM-specific events.
SWIM 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. SWIM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SWIM alongside the broader basket even when SWIM-specific fundamentals are unchanged. Always rebuild the position from current SWIM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SWIM?
- A collar on SWIM is the collar strategy applied to SWIM (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 SWIM stock trading near $6.46, the strikes shown on this page are snapped to the nearest listed SWIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SWIM 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 SWIM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 103.00%), 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 SWIM collar?
- The breakeven for the SWIM 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 SWIM market-implied 1-standard-deviation expected move is approximately 29.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SWIM?
- Collars on SWIM hedge an existing long SWIM 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 SWIM implied volatility affect this collar?
- SWIM ATM IV is at 103.00% with IV rank near 19.88%, 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.