SXI Collar Strategy
SXI (Standex International Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Standex International Corporation (SXI) operates as a diversified global manufacturer and provider of products and services, catering to commercial and industrial markets across the United States and internationally. The company's operations are strategically organized into five key segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics division specializes in a wide array of sensors, including reed relays, fluid level, proximity, motion, flow, and HVAC condensate, along with custom electronic sensing solutions. It also delivers cutting-edge current sense and advanced planar transformer technologies, value-added assemblies, mechanical packaging, and bespoke wound transformers and inductors for both low and high-frequency applications. The Engraving segment offers mold texturizing, produces slush molding tools, provides roll engraving, and manufactures tooling for hygiene products and low observation vents. Additionally, it supplies project management and design services tailored for stealth aircraft, alongside process machinery for various industries.
SXI (Standex International Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $4.00B, a trailing P/E of 38.03, a beta of 1.05 versus the broader market, a 52-week range of 197-363.89, average daily share volume of 197K, a public-listing history dating back to 1969, approximately 4K full-time employees. These structural characteristics shape how SXI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places SXI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 38.03 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. SXI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SXI?
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.
SXI snapshot
As of August 14, 2026, spot at $332.06, ATM IV 35.10%, IV rank 4.34%, expected move 10.06%. The collar on SXI below is built from the August 14, 2026 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 SXI specifically: IV regime affects collar pricing on both sides; compressed SXI IV at 35.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.06% (roughly $33.41 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 SXI expiries trade a higher absolute premium for lower per-day decay. Position sizing on SXI should anchor to the underlying notional of $332.06 per share and to the trader's directional view on SXI stock.
SXI collar setup
The SXI collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SXI at $332.06 on that close, the first option leg uses a $350.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SXI 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 SXI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $332.06 | long |
| Sell 1 | Call | $350.00 | $7.30 |
| Buy 1 | Put | $320.00 | $9.25 |
SXI collar risk and reward
- Net Premium / Debit
- -$33,401.00
- Max Profit (per contract)
- $1,599.00
- Max Loss (per contract)
- -$1,401.00
- Breakeven(s)
- $334.01
- Risk / Reward Ratio
- 1.141
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.
SXI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SXI. 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% | -$1,401.00 |
| $73.43 | -77.9% | -$1,401.00 |
| $146.85 | -55.8% | -$1,401.00 |
| $220.27 | -33.7% | -$1,401.00 |
| $293.69 | -11.6% | -$1,401.00 |
| $367.11 | +10.6% | +$1,599.00 |
| $440.53 | +32.7% | +$1,599.00 |
| $513.94 | +54.8% | +$1,599.00 |
| $587.36 | +76.9% | +$1,599.00 |
| $660.78 | +99.0% | +$1,599.00 |
When traders use collar on SXI
Collars on SXI hedge an existing long SXI 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.
SXI thesis for this collar
The market-implied 1-standard-deviation range for SXI extends from approximately $298.65 on the downside to $365.47 on the upside. A SXI collar hedges an existing long SXI 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 SXI IV rank near 4.34% 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 SXI at 35.10%. As a Industrials name, SXI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SXI-specific events.
SXI 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. SXI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SXI alongside the broader basket even when SXI-specific fundamentals are unchanged. Always rebuild the position from current SXI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SXI?
- A collar on SXI is the collar strategy applied to SXI (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 SXI stock at $332.06 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SXI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SXI 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 SXI collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 35.10%), the computed maximum profit is $1,599.00 per contract and the computed maximum loss is -$1,401.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SXI collar?
- The breakeven for the SXI collar priced on this page is roughly $334.01 at expiration, derived from the August 14, 2026 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 SXI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SXI?
- Collars on SXI hedge an existing long SXI 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 SXI implied volatility affect this collar?
- SXI ATM IV is at 35.10% with IV rank near 4.34%, 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.