UNM Collar Strategy
UNM (Unum Group), in the Financial Services sector, (Insurance - Life industry), listed on NYSE.
Unum Group, along with its various subsidiaries, specializes in delivering financial protection benefits, primarily operating across the United States, the United Kingdom, and Poland. The company's operations are organized into distinct segments: Unum US, Unum International, Colonial Life, and the Closed Block. Its extensive product portfolio encompasses group coverage, including long-term and short-term disability, life insurance, and accidental death and dismemberment. Additionally, Unum provides a range of supplemental and voluntary offerings like individual disability, various voluntary benefits, and dental and vision plans. Further offerings include policies addressing accidents, sickness, general disability, life coverage, cancer, and critical illness. Beyond these, Unum's services extend to group pension plans, individual life insurance, corporate-owned life insurance (COLI), and the management of reinsurance pools.
UNM (Unum Group) trades in the Financial Services sector, specifically Insurance - Life, with a market capitalization of approximately $14.53B, a trailing P/E of 20.86, a beta of 0.26 versus the broader market, a 52-week range of 68.28-93.22, average daily share volume of 1.4M, a public-listing history dating back to 1986, approximately 11K full-time employees. These structural characteristics shape how UNM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.26 indicates UNM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. UNM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UNM?
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.
UNM snapshot
As of August 14, 2026, spot at $93.14, ATM IV 25.80%, IV rank 30.34%, expected move 7.40%. The collar on UNM 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 UNM specifically: IV regime affects collar pricing on both sides; mid-range UNM IV at 25.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.40% (roughly $6.89 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 UNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on UNM should anchor to the underlying notional of $93.14 per share and to the trader's directional view on UNM stock.
UNM collar setup
The UNM 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 UNM at $93.14 on that close, the first option leg uses a $97.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UNM 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 UNM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $93.14 | long |
| Sell 1 | Call | $97.50 | $1.60 |
| Buy 1 | Put | $87.50 | $0.90 |
UNM collar risk and reward
- Net Premium / Debit
- -$9,244.00
- Max Profit (per contract)
- $506.00
- Max Loss (per contract)
- -$494.00
- Breakeven(s)
- $92.44
- Risk / Reward Ratio
- 1.024
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.
UNM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UNM. 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% | -$494.00 |
| $20.60 | -77.9% | -$494.00 |
| $41.20 | -55.8% | -$494.00 |
| $61.79 | -33.7% | -$494.00 |
| $82.38 | -11.6% | -$494.00 |
| $102.97 | +10.6% | +$506.00 |
| $123.57 | +32.7% | +$506.00 |
| $144.16 | +54.8% | +$506.00 |
| $164.75 | +76.9% | +$506.00 |
| $185.34 | +99.0% | +$506.00 |
When traders use collar on UNM
Collars on UNM hedge an existing long UNM 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.
UNM thesis for this collar
The market-implied 1-standard-deviation range for UNM extends from approximately $86.25 on the downside to $100.03 on the upside. A UNM collar hedges an existing long UNM 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 UNM IV rank near 30.34% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UNM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UNM-specific events.
UNM 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. UNM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UNM alongside the broader basket even when UNM-specific fundamentals are unchanged. Always rebuild the position from current UNM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UNM?
- A collar on UNM is the collar strategy applied to UNM (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 UNM stock at $93.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UNM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UNM 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 UNM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 25.80%), the computed maximum profit is $506.00 per contract and the computed maximum loss is -$494.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UNM collar?
- The breakeven for the UNM collar priced on this page is roughly $92.44 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 UNM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UNM?
- Collars on UNM hedge an existing long UNM 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 UNM implied volatility affect this collar?
- UNM ATM IV is at 25.80% with IV rank near 30.34%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.