WOR Collar Strategy
WOR (Worthington Industries, Inc.), in the Industrials sector, (Manufacturing - Metal Fabrication industry), listed on NYSE.
Worthington Industries, Inc., an industrial manufacturing company, focuses on value-added steel processing, manufactured consumer, building, and sustainable mobility products in North America and internationally. It operates through Steel Processing, Consumer Products, Building Products, and Sustainable Energy Solutions segments. The Steel Processing segment processes flat-rolled steel for customers primarily in the automotive, aerospace, agricultural, appliance, construction, container, energy, hardware, heavy-truck, HVAC, lawn and garden, leisure and recreation, office furniture, and office equipment markets. It also toll processes steel for steel mills, large end-users, service centers, and other processors. The Consumer Products segment sells tools, outdoor living, and celebrations products under the Coleman, Bernzomatic, Balloon Time, Mag-Torch, General, Garden-Weasel, Pactool International, Hawkeye, Worthington Pro Grade, and Level5 brand names. The Building Products segment sells refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products to gas producers and distributors.
WOR (Worthington Industries, Inc.) trades in the Industrials sector, specifically Manufacturing - Metal Fabrication, with a market capitalization of approximately $2.71B, a trailing P/E of 24.03, a beta of 1.18 versus the broader market, a 52-week range of 45.01-70.91, average daily share volume of 204K, a public-listing history dating back to 1980, approximately 6K full-time employees. These structural characteristics shape how WOR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places WOR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. WOR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WOR?
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 WOR snapshot
As of May 15, 2026, spot at $53.48, ATM IV 31.80%, IV rank 2.70%, expected move 9.12%. The collar on WOR 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 WOR specifically: IV regime affects collar pricing on both sides; compressed WOR IV at 31.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.12% (roughly $4.88 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 WOR expiries trade a higher absolute premium for lower per-day decay. Position sizing on WOR should anchor to the underlying notional of $53.48 per share and to the trader's directional view on WOR stock.
WOR collar setup
The WOR 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 WOR near $53.48, the first option leg uses a $56.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WOR 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 WOR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $53.48 | long |
| Sell 1 | Call | $56.15 | N/A |
| Buy 1 | Put | $50.81 | N/A |
WOR 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.
WOR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WOR. 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 WOR
Collars on WOR hedge an existing long WOR 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.
WOR thesis for this collar
The market-implied 1-standard-deviation range for WOR extends from approximately $48.60 on the downside to $58.36 on the upside. A WOR collar hedges an existing long WOR 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 WOR IV rank near 2.70% 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 WOR at 31.80%. As a Industrials name, WOR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WOR-specific events.
WOR 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. WOR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WOR alongside the broader basket even when WOR-specific fundamentals are unchanged. Always rebuild the position from current WOR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WOR?
- A collar on WOR is the collar strategy applied to WOR (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 WOR stock trading near $53.48, the strikes shown on this page are snapped to the nearest listed WOR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WOR 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 WOR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.80%), 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 WOR collar?
- The breakeven for the WOR 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 WOR market-implied 1-standard-deviation expected move is approximately 9.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WOR?
- Collars on WOR hedge an existing long WOR 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 WOR implied volatility affect this collar?
- WOR ATM IV is at 31.80% with IV rank near 2.70%, 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.