VIRC Collar Strategy
VIRC (Virco Mfg. Corporation), in the Consumer Cyclical sector, (Furnishings, Fixtures & Appliances industry), listed on NASDAQ.
Virco Mfg. Corporation engages in the design, production, and distribution of furniture in the United States. It offers seating products, including 4-leg chairs, cantilever chairs, tablet armchairs with work surfaces and compact footprints, steel-frame and floor rockers, stools, series chairs, stack and folding chairs, hard plastic seating, upholstered stack and ergonomic chairs, and plastic stack chairs. The company also provides folding, activity, office, computer, and mobile tables; and computer furniture, such as keyboard mouse trays, CPU holders, support columns, desks and workstations, specialty tables, instructor media stations and towers, and other products. In addition, it offers chair desks, combo units, and tablet arm and caster units, as well as a returns and credenzas. Further, the company provides administrative office furniture, including desks, bookcases, storage cabinets, and other items, as well as wardrobe tower cabinets, file credenzas, and mobile pedestals; laboratory furniture comprising steel-based science tables, table bases, lab stools, and wood-frame science tables; mobile furniture, such as mobile tables for cafeterias, mobile cabinets, and mobile task chairs for school settings and offices; and handling and storage equipment, as well as manufactures stackable storage trucks.
VIRC (Virco Mfg. Corporation) trades in the Consumer Cyclical sector, specifically Furnishings, Fixtures & Appliances, with a market capitalization of approximately $95.0M, a trailing P/E of 36.99, a beta of 0.23 versus the broader market, a 52-week range of 5.16-9.09, average daily share volume of 38K, a public-listing history dating back to 1980, approximately 810 full-time employees. These structural characteristics shape how VIRC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.23 indicates VIRC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 36.99 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. VIRC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on VIRC?
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 VIRC snapshot
As of May 15, 2026, spot at $6.06, ATM IV 93.30%, IV rank 42.86%, expected move 26.75%. The collar on VIRC 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 VIRC specifically: IV regime affects collar pricing on both sides; mid-range VIRC IV at 93.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.75% (roughly $1.62 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 VIRC expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIRC should anchor to the underlying notional of $6.06 per share and to the trader's directional view on VIRC stock.
VIRC collar setup
The VIRC 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 VIRC near $6.06, the first option leg uses a $6.36 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIRC 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 VIRC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.06 | long |
| Sell 1 | Call | $6.36 | N/A |
| Buy 1 | Put | $5.76 | N/A |
VIRC 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.
VIRC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VIRC. 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 VIRC
Collars on VIRC hedge an existing long VIRC 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.
VIRC thesis for this collar
The market-implied 1-standard-deviation range for VIRC extends from approximately $4.44 on the downside to $7.68 on the upside. A VIRC collar hedges an existing long VIRC 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 VIRC IV rank near 42.86% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on VIRC should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, VIRC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIRC-specific events.
VIRC 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. VIRC positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VIRC alongside the broader basket even when VIRC-specific fundamentals are unchanged. Always rebuild the position from current VIRC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VIRC?
- A collar on VIRC is the collar strategy applied to VIRC (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 VIRC stock trading near $6.06, the strikes shown on this page are snapped to the nearest listed VIRC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VIRC 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 VIRC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 93.30%), 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 VIRC collar?
- The breakeven for the VIRC 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 VIRC market-implied 1-standard-deviation expected move is approximately 26.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VIRC?
- Collars on VIRC hedge an existing long VIRC 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 VIRC implied volatility affect this collar?
- VIRC ATM IV is at 93.30% with IV rank near 42.86%, 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.