VIAV Collar Strategy
VIAV (Viavi Solutions Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Viavi Solutions Inc. offers a comprehensive suite of solutions for network testing, monitoring, and assurance to a global customer base. These clients include telecommunication service providers, businesses, manufacturers of network equipment, original equipment manufacturers, governmental organizations, and the aviation industry. The company's operations are divided into three core segments: 1. Network Enablement (NE): This division focuses on providing tools for the construction and upkeep of network infrastructure. It supplies instruments, software, and associated services crucial for the design, deployment, activation, certification, troubleshooting, and optimization of networks. This also encompasses specialized instrumentation for communication and safety.
VIAV (Viavi Solutions Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $11.75B, a beta of 1.19 versus the broader market, a 52-week range of 9.62-60.43, average daily share volume of 7.1M, a public-listing history dating back to 1993, approximately 4K full-time employees. These structural characteristics shape how VIAV stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.19 places VIAV roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on VIAV?
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 VIAV snapshot
As of June 30, 2026, spot at $48.26, ATM IV 94.40%, IV rank 64.32%, expected move 27.06%. The collar on VIAV 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 80-day expiry.
Why this collar structure on VIAV specifically: IV regime affects collar pricing on both sides; mid-range VIAV IV at 94.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 27.06% (roughly $13.06 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VIAV expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIAV should anchor to the underlying notional of $48.26 per share and to the trader's directional view on VIAV stock.
VIAV collar setup
The VIAV 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 VIAV near $48.26, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIAV chain at a 80-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 VIAV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $48.26 | long |
| Sell 1 | Call | $50.00 | $8.40 |
| Buy 1 | Put | $46.00 | $7.25 |
VIAV collar risk and reward
- Net Premium / Debit
- -$4,711.00
- Max Profit (per contract)
- $289.00
- Max Loss (per contract)
- -$111.00
- Breakeven(s)
- $47.11
- Risk / Reward Ratio
- 2.604
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.
VIAV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VIAV. 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% | -$111.00 |
| $10.68 | -77.9% | -$111.00 |
| $21.35 | -55.8% | -$111.00 |
| $32.02 | -33.7% | -$111.00 |
| $42.69 | -11.5% | -$111.00 |
| $53.36 | +10.6% | +$289.00 |
| $64.03 | +32.7% | +$289.00 |
| $74.70 | +54.8% | +$289.00 |
| $85.37 | +76.9% | +$289.00 |
| $96.04 | +99.0% | +$289.00 |
When traders use collar on VIAV
Collars on VIAV hedge an existing long VIAV 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.
VIAV thesis for this collar
The market-implied 1-standard-deviation range for VIAV extends from approximately $35.20 on the downside to $61.32 on the upside. A VIAV collar hedges an existing long VIAV 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 VIAV IV rank near 64.32% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on VIAV should anchor more to the directional view and the expected-move geometry. As a Technology name, VIAV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIAV-specific events.
VIAV 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. VIAV positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VIAV alongside the broader basket even when VIAV-specific fundamentals are unchanged. Always rebuild the position from current VIAV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VIAV?
- A collar on VIAV is the collar strategy applied to VIAV (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 VIAV stock trading near $48.26, the strikes shown on this page are snapped to the nearest listed VIAV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VIAV 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 VIAV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 94.40%), the computed maximum profit is $289.00 per contract and the computed maximum loss is -$111.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VIAV collar?
- The breakeven for the VIAV collar priced on this page is roughly $47.11 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 VIAV market-implied 1-standard-deviation expected move is approximately 27.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VIAV?
- Collars on VIAV hedge an existing long VIAV 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 VIAV implied volatility affect this collar?
- VIAV ATM IV is at 94.40% with IV rank near 64.32%, 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.