SXI Collar Strategy
SXI (Standex International Corporation), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Standex International Corporation, together with subsidiaries, manufactures and sells various products and services for commercial and industrial markets in the United States and internationally. It operates through five segments: Electronics, Engraving, Scientific, Engineering Technologies, and Specialty Solutions. The Electronics segment offers reed relays, fluid level, proximity, motion, flow, HVAC condensate, and custom electronics sensors; and current sense and advanced planar transformer technologies, value added assemblies, and mechanical packaging, as well as custom wound transformers and inductors for low and high frequency applications. The Engraving segment provides mold texturizing, slush molding tools, roll engraving, hygiene product tooling, and low observation vents, as well as project management and design services for stealth aircraft; and process machinery for various industries. The Scientific segment offers temperature controlled equipment for the medical, scientific, pharmaceutical, biotech, and industrial markets. The Engineering Technologies segment offers net and near net formed single-source customized solutions that are used in the manufacture of engineered components for the aviation, aerospace, defense, energy, industrial, medical, marine, oil and gas, and manned and unmanned space markets.
SXI (Standex International Corporation) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $3.06B, a trailing P/E of 30.78, a beta of 1.09 versus the broader market, a 52-week range of 144.62-284.71, average daily share volume of 220K, 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 1.09 places SXI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. 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.
Current SXI snapshot
As of May 15, 2026, spot at $249.52, ATM IV 38.40%, IV rank 70.84%, expected move 11.01%. The collar on SXI 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 98-day expiry.
Why this collar structure on SXI specifically: IV regime affects collar pricing on both sides; elevated SXI IV at 38.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.01% (roughly $27.47 on the underlying). The 98-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 $249.52 per share and to the trader's directional view on SXI stock.
SXI collar setup
The SXI 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 SXI near $249.52, the first option leg uses a $260.00 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 98-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 | $249.52 | long |
| Sell 1 | Call | $260.00 | $15.40 |
| Buy 1 | Put | $240.00 | $14.40 |
SXI collar risk and reward
- Net Premium / Debit
- -$24,852.00
- Max Profit (per contract)
- $1,148.00
- Max Loss (per contract)
- -$852.00
- Breakeven(s)
- $248.52
- Risk / Reward Ratio
- 1.347
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% | -$852.00 |
| $55.18 | -77.9% | -$852.00 |
| $110.35 | -55.8% | -$852.00 |
| $165.52 | -33.7% | -$852.00 |
| $220.69 | -11.6% | -$852.00 |
| $275.86 | +10.6% | +$1,148.00 |
| $331.02 | +32.7% | +$1,148.00 |
| $386.19 | +54.8% | +$1,148.00 |
| $441.36 | +76.9% | +$1,148.00 |
| $496.53 | +99.0% | +$1,148.00 |
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 $222.05 on the downside to $276.99 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 70.84% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on SXI at 38.40%. 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 trading near $249.52, the strikes shown on this page are snapped to the nearest listed SXI chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 38.40%), the computed maximum profit is $1,148.00 per contract and the computed maximum loss is -$852.00 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 $248.52 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 SXI market-implied 1-standard-deviation expected move is approximately 11.01%; 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 38.40% with IV rank near 70.84%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.