How are TBIL 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 TBIL collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $246.00 per contract and the computed maximum loss is -$254.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TBIL collar?

The breakeven for the TBIL collar priced on this page is roughly $49.54 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 TBIL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TBIL implied volatility affect this collar?

TBIL ATM IV is at 28.10% with IV rank near 6.96%, 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.

TBIL Collar Strategy

TBIL (F/m US Treasury 3 Month Bill Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

TBIL is part of the first single-bond ETF suite. The fund is a tool used in portfolio management. The fund tracks an index that holds just the on-the-run 3-month US T-Bills, which are the most recently issued and most liquid. The index purchases a single issue which will be held for a full month. At each month-end rebalancing, the underlying issue is sold and rolled into a newly selected issue, given that there has been a new public sale or auction by the US Government for 3-month T-Bills. The fund pays transaction costs when it buys and sells securities.

TBIL (F/m US Treasury 3 Month Bill Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $7.09B, a beta of -0.00 versus the broader market, a 52-week range of 49.84-50.02, average daily share volume of 1.9M, a public-listing history dating back to 2022. These structural characteristics shape how TBIL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.00 indicates TBIL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TBIL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on TBIL?

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.

TBIL snapshot

As of August 14, 2026, spot at $49.95, ATM IV 28.10%, IV rank 6.96%, expected move 8.06%. The collar on TBIL 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 TBIL specifically: IV regime affects collar pricing on both sides; compressed TBIL IV at 28.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.06% (roughly $4.02 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 TBIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on TBIL should anchor to the underlying notional of $49.95 per share and to the trader's directional view on TBIL etf.

TBIL collar setup

The TBIL 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 TBIL at $49.95 on that close, the first option leg uses a $52.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TBIL 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 TBIL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$49.95	long
Sell 1	Call	$52.00	$0.96
Buy 1	Put	$47.00	$0.55

TBIL collar risk and reward

Net Premium / Debit: -$4,954.00
Max Profit (per contract): $246.00
Max Loss (per contract): -$254.00
Breakeven(s): $49.54
Risk / Reward Ratio: 0.969

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.

TBIL collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TBIL. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$254.00
$11.05	-77.9%	-$254.00
$22.10	-55.8%	-$254.00
$33.14	-33.7%	-$254.00
$44.18	-11.5%	-$254.00
$55.23	+10.6%	+$246.00
$66.27	+32.7%	+$246.00
$77.31	+54.8%	+$246.00
$88.35	+76.9%	+$246.00
$99.40	+99.0%	+$246.00

When traders use collar on TBIL

Collars on TBIL hedge an existing long TBIL 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.

TBIL thesis for this collar

The market-implied 1-standard-deviation range for TBIL extends from approximately $45.93 on the downside to $53.97 on the upside. A TBIL collar hedges an existing long TBIL 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 TBIL IV rank near 6.96% 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 TBIL at 28.10%. As a Financial Services name, TBIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TBIL-specific events.

TBIL 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. TBIL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TBIL alongside the broader basket even when TBIL-specific fundamentals are unchanged. Always rebuild the position from current TBIL chain quotes before placing a trade.

Frequently asked questions

What is a collar on TBIL?: A collar on TBIL is the collar strategy applied to TBIL (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 TBIL etf at $49.95 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TBIL chain strike and the premiums come straight from that session's bid/ask midpoint.
How are TBIL 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 TBIL collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.10%), the computed maximum profit is $246.00 per contract and the computed maximum loss is -$254.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TBIL collar?: The breakeven for the TBIL collar priced on this page is roughly $49.54 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 TBIL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TBIL?: Collars on TBIL hedge an existing long TBIL 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 TBIL implied volatility affect this collar?: TBIL ATM IV is at 28.10% with IV rank near 6.96%, 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.