ZUMZ Collar Strategy
ZUMZ (Zumiez Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NASDAQ.
Zumiez Inc., together with its subsidiaries, operates as a specialty retailer of apparel, footwear, accessories, and hardgoods for young men and women. Its hardgoods include skateboards, snowboards, bindings, components, and other equipment. As of February 26, 2022, the company operated 738 stores, including 602 stores in the United States, 52 stores in Canada, 67 stores in Europe, and 17 stores in Australia under the names of Zumiez, Blue Tomato, and Fast Times. The company also operates zumiez.com, zumiez.ca, blue-tomato.com, and fasttimes.com.au e-commerce websites. Zumiez Inc. was founded in 1978 and is headquartered in Lynnwood, Washington.
ZUMZ (Zumiez Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $401.7M, a trailing P/E of 29.19, a beta of 0.98 versus the broader market, a 52-week range of 11.41-31.7, average daily share volume of 152K, a public-listing history dating back to 2005, approximately 2K full-time employees. These structural characteristics shape how ZUMZ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places ZUMZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on ZUMZ?
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 ZUMZ snapshot
As of May 15, 2026, spot at $22.52, ATM IV 61.90%, IV rank 7.33%, expected move 17.75%. The collar on ZUMZ 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 ZUMZ specifically: IV regime affects collar pricing on both sides; compressed ZUMZ IV at 61.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.75% (roughly $4.00 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 ZUMZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZUMZ should anchor to the underlying notional of $22.52 per share and to the trader's directional view on ZUMZ stock.
ZUMZ collar setup
The ZUMZ 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 ZUMZ near $22.52, the first option leg uses a $23.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZUMZ 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 ZUMZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $22.52 | long |
| Sell 1 | Call | $23.65 | N/A |
| Buy 1 | Put | $21.39 | N/A |
ZUMZ 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.
ZUMZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ZUMZ. 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 ZUMZ
Collars on ZUMZ hedge an existing long ZUMZ 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.
ZUMZ thesis for this collar
The market-implied 1-standard-deviation range for ZUMZ extends from approximately $18.52 on the downside to $26.52 on the upside. A ZUMZ collar hedges an existing long ZUMZ 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 ZUMZ IV rank near 7.33% 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 ZUMZ at 61.90%. As a Consumer Cyclical name, ZUMZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZUMZ-specific events.
ZUMZ 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. ZUMZ positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ZUMZ alongside the broader basket even when ZUMZ-specific fundamentals are unchanged. Always rebuild the position from current ZUMZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ZUMZ?
- A collar on ZUMZ is the collar strategy applied to ZUMZ (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 ZUMZ stock trading near $22.52, the strikes shown on this page are snapped to the nearest listed ZUMZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ZUMZ 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 ZUMZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.90%), 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 ZUMZ collar?
- The breakeven for the ZUMZ 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 ZUMZ market-implied 1-standard-deviation expected move is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ZUMZ?
- Collars on ZUMZ hedge an existing long ZUMZ 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 ZUMZ implied volatility affect this collar?
- ZUMZ ATM IV is at 61.90% with IV rank near 7.33%, 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.