UDMY Collar Strategy
UDMY (Udemy, Inc.), in the Consumer Defensive sector, (Education & Training Services industry), listed on NASDAQ.
Udemy, Inc. operates a marketplace platform for teaching and learning skills in the United States and internationally. The company offers technical and business skills, and personal development courses for individual learners and enterprise customers. Its platform provides 49 million learners with access to approximately 180,000 courses through direct-to-consumer or Udemy Business offerings in approximately 75 languages. The company's courses offer learning objectives, such as reskilling or upskilling in technology and business, and soft skills, as well as learners receive access to interactive learning tools comprising quizzes, exercises, and instructor questions-and-answers. Udemy, Inc. was incorporated in 2010 and is headquartered in San Francisco, California.
UDMY (Udemy, Inc.) trades in the Consumer Defensive sector, specifically Education & Training Services, with a market capitalization of approximately $677.3M, a beta of 1.58 versus the broader market, a 52-week range of 4.02-8.09, average daily share volume of 1.6M, a public-listing history dating back to 2021, approximately 1K full-time employees. These structural characteristics shape how UDMY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.58 indicates UDMY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on UDMY?
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 UDMY snapshot
As of May 15, 2026, spot at $5.50, ATM IV 97.40%, IV rank 19.65%, expected move 27.92%. The collar on UDMY 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 UDMY specifically: IV regime affects collar pricing on both sides; compressed UDMY IV at 97.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 27.92% (roughly $1.54 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 UDMY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UDMY should anchor to the underlying notional of $5.50 per share and to the trader's directional view on UDMY stock.
UDMY collar setup
The UDMY 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 UDMY near $5.50, the first option leg uses a $5.78 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UDMY 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 UDMY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.50 | long |
| Sell 1 | Call | $5.78 | N/A |
| Buy 1 | Put | $5.23 | N/A |
UDMY 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.
UDMY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UDMY. 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 UDMY
Collars on UDMY hedge an existing long UDMY 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.
UDMY thesis for this collar
The market-implied 1-standard-deviation range for UDMY extends from approximately $3.96 on the downside to $7.04 on the upside. A UDMY collar hedges an existing long UDMY 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 UDMY IV rank near 19.65% 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 UDMY at 97.40%. As a Consumer Defensive name, UDMY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UDMY-specific events.
UDMY 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. UDMY positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UDMY alongside the broader basket even when UDMY-specific fundamentals are unchanged. Always rebuild the position from current UDMY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UDMY?
- A collar on UDMY is the collar strategy applied to UDMY (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 UDMY stock trading near $5.50, the strikes shown on this page are snapped to the nearest listed UDMY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UDMY 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 UDMY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 97.40%), 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 UDMY collar?
- The breakeven for the UDMY 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 UDMY market-implied 1-standard-deviation expected move is approximately 27.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UDMY?
- Collars on UDMY hedge an existing long UDMY 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 UDMY implied volatility affect this collar?
- UDMY ATM IV is at 97.40% with IV rank near 19.65%, 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.