ZIM Collar Strategy
ZIM (ZIM Integrated Shipping Services Ltd.), in the Industrials sector, (Marine Shipping industry), listed on NYSE.
ZIM Integrated Shipping Services Ltd., along with its subsidiaries, operates internationally and within Israel, providing container shipping and various associated services. They offer comprehensive transportation solutions, spanning from port-to-port transfers to complete door-to-door delivery, catering to a diverse client base that includes individual end-users, freight consolidators, and forwarders. The company also features ZIMonitor, a specialized premium tracking service designed for refrigerated cargo. As of December 31, 2021, their fleet comprised 118 vessels—110 container ships and 8 for vehicle transport—with four vessels owned directly and 114 chartered. This extensive operation supports a network of 70 weekly shipping routes. The company was founded in 1945 and is headquartered in Haifa, Israel.
ZIM (ZIM Integrated Shipping Services Ltd.) trades in the Industrials sector, specifically Marine Shipping, with a market capitalization of approximately $3.08B, a trailing P/E of 31.48, a beta of 1.14 versus the broader market, a 52-week range of 12.33-29.97, average daily share volume of 1.3M, a public-listing history dating back to 2021, approximately 5K full-time employees. These structural characteristics shape how ZIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.14 places ZIM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ZIM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ZIM?
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 ZIM snapshot
As of June 30, 2026, spot at $26.02, ATM IV 41.12%, IV rank 20.90%, expected move 11.79%. The collar on ZIM 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 31-day expiry.
Why this collar structure on ZIM specifically: IV regime affects collar pricing on both sides; compressed ZIM IV at 41.12% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.79% (roughly $3.07 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ZIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZIM should anchor to the underlying notional of $26.02 per share and to the trader's directional view on ZIM stock.
ZIM collar setup
The ZIM 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 ZIM near $26.02, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZIM chain at a 31-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 ZIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $26.02 | long |
| Sell 1 | Call | $27.00 | $0.93 |
| Buy 1 | Put | $25.00 | $0.62 |
ZIM collar risk and reward
- Net Premium / Debit
- -$2,571.00
- Max Profit (per contract)
- $129.00
- Max Loss (per contract)
- -$71.00
- Breakeven(s)
- $25.71
- Risk / Reward Ratio
- 1.817
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.
ZIM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ZIM. 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% | -$71.00 |
| $5.76 | -77.9% | -$71.00 |
| $11.51 | -55.7% | -$71.00 |
| $17.27 | -33.6% | -$71.00 |
| $23.02 | -11.5% | -$71.00 |
| $28.77 | +10.6% | +$129.00 |
| $34.52 | +32.7% | +$129.00 |
| $40.27 | +54.8% | +$129.00 |
| $46.03 | +76.9% | +$129.00 |
| $51.78 | +99.0% | +$129.00 |
When traders use collar on ZIM
Collars on ZIM hedge an existing long ZIM 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.
ZIM thesis for this collar
The market-implied 1-standard-deviation range for ZIM extends from approximately $22.95 on the downside to $29.09 on the upside. A ZIM collar hedges an existing long ZIM 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 ZIM IV rank near 20.90% 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 ZIM at 41.12%. As a Industrials name, ZIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZIM-specific events.
ZIM 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. ZIM positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ZIM alongside the broader basket even when ZIM-specific fundamentals are unchanged. Always rebuild the position from current ZIM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ZIM?
- A collar on ZIM is the collar strategy applied to ZIM (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 ZIM stock trading near $26.02, the strikes shown on this page are snapped to the nearest listed ZIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ZIM 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 ZIM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 41.12%), the computed maximum profit is $129.00 per contract and the computed maximum loss is -$71.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ZIM collar?
- The breakeven for the ZIM collar priced on this page is roughly $25.71 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 ZIM market-implied 1-standard-deviation expected move is approximately 11.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ZIM?
- Collars on ZIM hedge an existing long ZIM 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 ZIM implied volatility affect this collar?
- ZIM ATM IV is at 41.12% with IV rank near 20.90%, 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.