FLIN Collar Strategy
FLIN (Franklin FTSE India ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the FTSE India RIC Capped Index (the FTSE India Capped Index).
FLIN (Franklin FTSE India ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.19B, a beta of 0.60 versus the broader market, a 52-week range of 32.2-40.085, average daily share volume of 910K, a public-listing history dating back to 2018. These structural characteristics shape how FLIN etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.60 indicates FLIN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FLIN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FLIN?
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 FLIN snapshot
As of May 15, 2026, spot at $34.41, ATM IV 38.90%, IV rank 5.56%, expected move 11.15%. The collar on FLIN 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 FLIN specifically: IV regime affects collar pricing on both sides; compressed FLIN IV at 38.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.15% (roughly $3.84 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 FLIN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLIN should anchor to the underlying notional of $34.41 per share and to the trader's directional view on FLIN etf.
FLIN collar setup
The FLIN 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 FLIN near $34.41, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLIN 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 FLIN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $34.41 | long |
| Sell 1 | Call | $36.00 | $0.92 |
| Buy 1 | Put | $33.00 | $0.89 |
FLIN collar risk and reward
- Net Premium / Debit
- -$3,438.00
- Max Profit (per contract)
- $162.00
- Max Loss (per contract)
- -$138.00
- Breakeven(s)
- $34.38
- Risk / Reward Ratio
- 1.174
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.
FLIN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FLIN. 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% | -$138.00 |
| $7.62 | -77.9% | -$138.00 |
| $15.22 | -55.8% | -$138.00 |
| $22.83 | -33.6% | -$138.00 |
| $30.44 | -11.5% | -$138.00 |
| $38.05 | +10.6% | +$162.00 |
| $45.65 | +32.7% | +$162.00 |
| $53.26 | +54.8% | +$162.00 |
| $60.87 | +76.9% | +$162.00 |
| $68.47 | +99.0% | +$162.00 |
When traders use collar on FLIN
Collars on FLIN hedge an existing long FLIN etf 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.
FLIN thesis for this collar
The market-implied 1-standard-deviation range for FLIN extends from approximately $30.57 on the downside to $38.25 on the upside. A FLIN collar hedges an existing long FLIN 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 FLIN IV rank near 5.56% 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 FLIN at 38.90%. As a Financial Services name, FLIN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLIN-specific events.
FLIN 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. FLIN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLIN alongside the broader basket even when FLIN-specific fundamentals are unchanged. Always rebuild the position from current FLIN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FLIN?
- A collar on FLIN is the collar strategy applied to FLIN (etf). 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 FLIN etf trading near $34.41, the strikes shown on this page are snapped to the nearest listed FLIN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLIN 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 FLIN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $162.00 per contract and the computed maximum loss is -$138.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FLIN collar?
- The breakeven for the FLIN collar priced on this page is roughly $34.38 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 FLIN market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FLIN?
- Collars on FLIN hedge an existing long FLIN etf 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 FLIN implied volatility affect this collar?
- FLIN ATM IV is at 38.90% with IV rank near 5.56%, 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.