TBLU Collar Strategy
TBLU (Tortoise Global Water Fund), in the Financial Services sector, (Asset Management industry), listed on NYSE.
TBLU offers exposure to developed-market all-cap water companies. The fund selects firms that derive at least 40% of gross revenues from either water infrastructure or water equipment and/or services. Water infrastructure companies are those that provide public water distribution, engineering, construction or consulting. Water equipment companies are those who provide water pipes, valves, pumps or water efficiency products such as filtration, treatment, and testing of water. Service companies provide technologies that facilitate management of water distribution, usage, treatment, and irrigation. The resulting portfolio includes a few dozen names, heavily weighted towards the US.
TBLU (Tortoise Global Water Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $54.6M, a beta of 1.02 versus the broader market, a 52-week range of 48.86-56.9, average daily share volume of 3K, a public-listing history dating back to 2017. These structural characteristics shape how TBLU etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places TBLU roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TBLU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TBLU?
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 TBLU snapshot
As of May 15, 2026, spot at $49.19, ATM IV 17.80%, IV rank 14.16%, expected move 5.10%. The collar on TBLU 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 TBLU specifically: IV regime affects collar pricing on both sides; compressed TBLU IV at 17.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.10% (roughly $2.51 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 TBLU expiries trade a higher absolute premium for lower per-day decay. Position sizing on TBLU should anchor to the underlying notional of $49.19 per share and to the trader's directional view on TBLU etf.
TBLU collar setup
The TBLU 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 TBLU near $49.19, the first option leg uses a $51.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TBLU 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 TBLU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $49.19 | long |
| Sell 1 | Call | $51.65 | N/A |
| Buy 1 | Put | $46.73 | N/A |
TBLU 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.
TBLU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TBLU. 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 TBLU
Collars on TBLU hedge an existing long TBLU 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.
TBLU thesis for this collar
The market-implied 1-standard-deviation range for TBLU extends from approximately $46.68 on the downside to $51.70 on the upside. A TBLU collar hedges an existing long TBLU 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 TBLU IV rank near 14.16% 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 TBLU at 17.80%. As a Financial Services name, TBLU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TBLU-specific events.
TBLU 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. TBLU positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TBLU alongside the broader basket even when TBLU-specific fundamentals are unchanged. Always rebuild the position from current TBLU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TBLU?
- A collar on TBLU is the collar strategy applied to TBLU (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 TBLU etf trading near $49.19, the strikes shown on this page are snapped to the nearest listed TBLU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TBLU 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 TBLU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.80%), 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 TBLU collar?
- The breakeven for the TBLU 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 TBLU market-implied 1-standard-deviation expected move is approximately 5.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TBLU?
- Collars on TBLU hedge an existing long TBLU 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 TBLU implied volatility affect this collar?
- TBLU ATM IV is at 17.80% with IV rank near 14.16%, 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.