FTC Collar Strategy
FTC (First Trust Large Cap Growth AlphaDEX Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The First Trust Large Cap Growth AlphaDEX Fund, identified by its symbol FTC, functions as a publicly traded investment vehicle. Its primary aim is to mirror the overall performance—both capital appreciation and income generation—of the Nasdaq AlphaDEX Large Cap Growth Index, prior to the deduction of any management fees or operational expenses.
FTC (First Trust Large Cap Growth AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.35B, a beta of 1.23 versus the broader market, a 52-week range of 147.94-194.18, average daily share volume of 16K, a public-listing history dating back to 2007. These structural characteristics shape how FTC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places FTC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FTC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FTC?
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 FTC snapshot
As of June 29, 2026, spot at $190.14, ATM IV 25.10%, IV rank 45.83%, expected move 7.20%. The collar on FTC 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 18-day expiry.
Why this collar structure on FTC specifically: IV regime affects collar pricing on both sides; mid-range FTC IV at 25.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.20% (roughly $13.68 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTC should anchor to the underlying notional of $190.14 per share and to the trader's directional view on FTC etf.
FTC collar setup
The FTC 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 FTC near $190.14, the first option leg uses a $200.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTC chain at a 18-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 FTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $190.14 | long |
| Sell 1 | Call | $200.00 | $0.90 |
| Buy 1 | Put | $180.00 | $1.35 |
FTC collar risk and reward
- Net Premium / Debit
- -$19,059.00
- Max Profit (per contract)
- $941.00
- Max Loss (per contract)
- -$1,059.00
- Breakeven(s)
- $190.59
- Risk / Reward Ratio
- 0.889
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.
FTC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FTC. 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% | -$1,059.00 |
| $42.05 | -77.9% | -$1,059.00 |
| $84.09 | -55.8% | -$1,059.00 |
| $126.13 | -33.7% | -$1,059.00 |
| $168.17 | -11.6% | -$1,059.00 |
| $210.21 | +10.6% | +$941.00 |
| $252.25 | +32.7% | +$941.00 |
| $294.29 | +54.8% | +$941.00 |
| $336.33 | +76.9% | +$941.00 |
| $378.37 | +99.0% | +$941.00 |
When traders use collar on FTC
Collars on FTC hedge an existing long FTC 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.
FTC thesis for this collar
The market-implied 1-standard-deviation range for FTC extends from approximately $176.46 on the downside to $203.82 on the upside. A FTC collar hedges an existing long FTC 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 FTC IV rank near 45.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FTC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTC-specific events.
FTC 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. FTC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTC alongside the broader basket even when FTC-specific fundamentals are unchanged. Always rebuild the position from current FTC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FTC?
- A collar on FTC is the collar strategy applied to FTC (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 FTC etf trading near $190.14, the strikes shown on this page are snapped to the nearest listed FTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTC 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 FTC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 25.10%), the computed maximum profit is $941.00 per contract and the computed maximum loss is -$1,059.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTC collar?
- The breakeven for the FTC collar priced on this page is roughly $190.59 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 FTC market-implied 1-standard-deviation expected move is approximately 7.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FTC?
- Collars on FTC hedge an existing long FTC 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 FTC implied volatility affect this collar?
- FTC ATM IV is at 25.10% with IV rank near 45.83%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.