FTEC Collar Strategy
FTEC (Fidelity MSCI Information Technology Index ETF), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The fund aims to replicate the investment returns of the MSCI USA IMI Information Technology 25/50 Index.
FTEC (Fidelity MSCI Information Technology Index ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $17.64B, a beta of 1.35 versus the broader market, a 52-week range of 198.17-300.79, average daily share volume of 350K, a public-listing history dating back to 2013. These structural characteristics shape how FTEC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates FTEC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. FTEC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FTEC?
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.
FTEC snapshot
As of August 14, 2026, spot at $292.18, ATM IV 26.50%, IV rank 46.90%, expected move 7.60%. The collar on FTEC below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on FTEC specifically: IV regime affects collar pricing on both sides; mid-range FTEC IV at 26.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.60% (roughly $22.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTEC expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTEC should anchor to the underlying notional of $292.18 per share and to the trader's directional view on FTEC etf.
FTEC collar setup
The FTEC collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FTEC at $292.18 on that close, the first option leg uses a $305.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTEC chain at a 35-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 FTEC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $292.18 | long |
| Sell 1 | Call | $305.00 | $4.90 |
| Buy 1 | Put | $280.00 | $4.58 |
FTEC collar risk and reward
- Net Premium / Debit
- -$29,185.50
- Max Profit (per contract)
- $1,314.50
- Max Loss (per contract)
- -$1,185.50
- Breakeven(s)
- $291.86
- Risk / Reward Ratio
- 1.109
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.
FTEC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FTEC. 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% | -$1,185.50 |
| $64.61 | -77.9% | -$1,185.50 |
| $129.21 | -55.8% | -$1,185.50 |
| $193.81 | -33.7% | -$1,185.50 |
| $258.42 | -11.6% | -$1,185.50 |
| $323.02 | +10.6% | +$1,314.50 |
| $387.62 | +32.7% | +$1,314.50 |
| $452.22 | +54.8% | +$1,314.50 |
| $516.82 | +76.9% | +$1,314.50 |
| $581.42 | +99.0% | +$1,314.50 |
When traders use collar on FTEC
Collars on FTEC hedge an existing long FTEC 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.
FTEC thesis for this collar
The market-implied 1-standard-deviation range for FTEC extends from approximately $269.98 on the downside to $314.38 on the upside. A FTEC collar hedges an existing long FTEC 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 FTEC IV rank near 46.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FTEC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FTEC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTEC-specific events.
FTEC 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. FTEC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTEC alongside the broader basket even when FTEC-specific fundamentals are unchanged. Always rebuild the position from current FTEC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FTEC?
- A collar on FTEC is the collar strategy applied to FTEC (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 FTEC etf at $292.18 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FTEC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FTEC 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 FTEC collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.50%), the computed maximum profit is $1,314.50 per contract and the computed maximum loss is -$1,185.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTEC collar?
- The breakeven for the FTEC collar priced on this page is roughly $291.86 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FTEC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.60%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FTEC?
- Collars on FTEC hedge an existing long FTEC 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 FTEC implied volatility affect this collar?
- FTEC ATM IV is at 26.50% with IV rank near 46.90%, 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.