WMK Collar Strategy
WMK (Weis Markets, Inc.), in the Consumer Defensive sector, (Grocery Stores industry), listed on NYSE.
Weis Markets, Inc. engages in the retail sale of food through a chain of supermarkets in Pennsylvania and surrounding states. The company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, and fuel; and general merchandise items, such as health and beauty care, and household products. It operates stores primarily under the Weis Markets name, as well as Weis, Weis 2 Go, Weis Great Meals Start Here, Weis Gas-n-Go, and Weis Nutri-Facts. As of March 7, 2022, the company owned and operated 197 stores in Pennsylvania, Maryland, Delaware, New Jersey, New York, West Virginia, and Virginia. Weis Markets, Inc. was founded in 1912 and is based in Sunbury, Pennsylvania.
WMK (Weis Markets, Inc.) trades in the Consumer Defensive sector, specifically Grocery Stores, with a market capitalization of approximately $1.73B, a trailing P/E of 17.12, a beta of 0.45 versus the broader market, a 52-week range of 59.99-79.05, average daily share volume of 151K, a public-listing history dating back to 1980, approximately 22K full-time employees. These structural characteristics shape how WMK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.45 indicates WMK has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. WMK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WMK?
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 WMK snapshot
As of May 15, 2026, spot at $70.72, ATM IV 44.00%, IV rank 7.72%, expected move 12.61%. The collar on WMK 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 WMK specifically: IV regime affects collar pricing on both sides; compressed WMK IV at 44.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.61% (roughly $8.92 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 WMK expiries trade a higher absolute premium for lower per-day decay. Position sizing on WMK should anchor to the underlying notional of $70.72 per share and to the trader's directional view on WMK stock.
WMK collar setup
The WMK 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 WMK near $70.72, the first option leg uses a $74.26 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WMK 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 WMK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $70.72 | long |
| Sell 1 | Call | $74.26 | N/A |
| Buy 1 | Put | $67.18 | N/A |
WMK 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.
WMK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WMK. 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 WMK
Collars on WMK hedge an existing long WMK 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.
WMK thesis for this collar
The market-implied 1-standard-deviation range for WMK extends from approximately $61.80 on the downside to $79.64 on the upside. A WMK collar hedges an existing long WMK 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 WMK IV rank near 7.72% 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 WMK at 44.00%. As a Consumer Defensive name, WMK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WMK-specific events.
WMK 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. WMK positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WMK alongside the broader basket even when WMK-specific fundamentals are unchanged. Always rebuild the position from current WMK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WMK?
- A collar on WMK is the collar strategy applied to WMK (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 WMK stock trading near $70.72, the strikes shown on this page are snapped to the nearest listed WMK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WMK 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 WMK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 44.00%), 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 WMK collar?
- The breakeven for the WMK 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 WMK market-implied 1-standard-deviation expected move is approximately 12.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WMK?
- Collars on WMK hedge an existing long WMK 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 WMK implied volatility affect this collar?
- WMK ATM IV is at 44.00% with IV rank near 7.72%, 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.