VERX Collar Strategy
VERX (Vertex, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Vertex, Inc. provides tax technology solutions for corporations in retail, communication, leasing, and manufacturing industries in the United States and internationally. It offers tax determination, compliance and reporting, tax data management, document management, pre-built integration, and industry-specific solutions. The company sells its software products through software license and software as a service subscriptions. It also provides implementation and training services in connection with its software license and cloud subscriptions, transaction tax returns outsourcing, and other tax-related services. Vertex, Inc. was founded in 1978 and is headquartered in King of Prussia, Pennsylvania.
VERX (Vertex, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $2.06B, a beta of 0.80 versus the broader market, a 52-week range of 10.59-42.44, average daily share volume of 1.8M, a public-listing history dating back to 2020, approximately 2K full-time employees. These structural characteristics shape how VERX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places VERX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on VERX?
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 VERX snapshot
As of May 15, 2026, spot at $12.90, ATM IV 66.50%, IV rank 31.02%, expected move 19.06%. The collar on VERX 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 VERX specifically: IV regime affects collar pricing on both sides; mid-range VERX IV at 66.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.06% (roughly $2.46 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 VERX expiries trade a higher absolute premium for lower per-day decay. Position sizing on VERX should anchor to the underlying notional of $12.90 per share and to the trader's directional view on VERX stock.
VERX collar setup
The VERX 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 VERX near $12.90, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VERX 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 VERX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.90 | long |
| Sell 1 | Call | $14.00 | $0.65 |
| Buy 1 | Put | $12.00 | $0.60 |
VERX collar risk and reward
- Net Premium / Debit
- -$1,285.00
- Max Profit (per contract)
- $115.00
- Max Loss (per contract)
- -$85.00
- Breakeven(s)
- $12.85
- Risk / Reward Ratio
- 1.353
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.
VERX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VERX. 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 | -99.9% | -$85.00 |
| $2.86 | -77.8% | -$85.00 |
| $5.71 | -55.7% | -$85.00 |
| $8.56 | -33.6% | -$85.00 |
| $11.41 | -11.5% | -$85.00 |
| $14.27 | +10.6% | +$115.00 |
| $17.12 | +32.7% | +$115.00 |
| $19.97 | +54.8% | +$115.00 |
| $22.82 | +76.9% | +$115.00 |
| $25.67 | +99.0% | +$115.00 |
When traders use collar on VERX
Collars on VERX hedge an existing long VERX 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.
VERX thesis for this collar
The market-implied 1-standard-deviation range for VERX extends from approximately $10.44 on the downside to $15.36 on the upside. A VERX collar hedges an existing long VERX 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 VERX IV rank near 31.02% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on VERX should anchor more to the directional view and the expected-move geometry. As a Technology name, VERX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VERX-specific events.
VERX 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. VERX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VERX alongside the broader basket even when VERX-specific fundamentals are unchanged. Always rebuild the position from current VERX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VERX?
- A collar on VERX is the collar strategy applied to VERX (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 VERX stock trading near $12.90, the strikes shown on this page are snapped to the nearest listed VERX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VERX 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 VERX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 66.50%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$85.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VERX collar?
- The breakeven for the VERX collar priced on this page is roughly $12.85 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 VERX market-implied 1-standard-deviation expected move is approximately 19.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VERX?
- Collars on VERX hedge an existing long VERX 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 VERX implied volatility affect this collar?
- VERX ATM IV is at 66.50% with IV rank near 31.02%, 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.