TEK Collar Strategy
TEK (iShares Technology Opportunities Active ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The iShares Technology Opportunities Active ETF seeks to provide long-term capital appreciation.
TEK (iShares Technology Opportunities Active ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $32.5M, a beta of 1.90 versus the broader market, a 52-week range of 25.182-39.9, average daily share volume of 6K, a public-listing history dating back to 2024. These structural characteristics shape how TEK etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.90 indicates TEK has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TEK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TEK?
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 TEK snapshot
As of May 15, 2026, spot at $38.55, ATM IV 38.40%, IV rank 29.43%, expected move 11.01%. The collar on TEK 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 TEK specifically: IV regime affects collar pricing on both sides; compressed TEK IV at 38.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.01% (roughly $4.24 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 TEK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TEK should anchor to the underlying notional of $38.55 per share and to the trader's directional view on TEK etf.
TEK collar setup
The TEK 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 TEK near $38.55, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TEK 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 TEK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.55 | long |
| Sell 1 | Call | $40.00 | $1.09 |
| Buy 1 | Put | $37.00 | $1.23 |
TEK collar risk and reward
- Net Premium / Debit
- -$3,869.00
- Max Profit (per contract)
- $131.00
- Max Loss (per contract)
- -$169.00
- Breakeven(s)
- $38.69
- Risk / Reward Ratio
- 0.775
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.
TEK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TEK. 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% | -$169.00 |
| $8.53 | -77.9% | -$169.00 |
| $17.06 | -55.8% | -$169.00 |
| $25.58 | -33.7% | -$169.00 |
| $34.10 | -11.5% | -$169.00 |
| $42.62 | +10.6% | +$131.00 |
| $51.15 | +32.7% | +$131.00 |
| $59.67 | +54.8% | +$131.00 |
| $68.19 | +76.9% | +$131.00 |
| $76.71 | +99.0% | +$131.00 |
When traders use collar on TEK
Collars on TEK hedge an existing long TEK 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.
TEK thesis for this collar
The market-implied 1-standard-deviation range for TEK extends from approximately $34.31 on the downside to $42.79 on the upside. A TEK collar hedges an existing long TEK 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 TEK IV rank near 29.43% 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 TEK at 38.40%. As a Financial Services name, TEK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TEK-specific events.
TEK 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. TEK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TEK alongside the broader basket even when TEK-specific fundamentals are unchanged. Always rebuild the position from current TEK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TEK?
- A collar on TEK is the collar strategy applied to TEK (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 TEK etf trading near $38.55, the strikes shown on this page are snapped to the nearest listed TEK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TEK 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 TEK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.40%), the computed maximum profit is $131.00 per contract and the computed maximum loss is -$169.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TEK collar?
- The breakeven for the TEK collar priced on this page is roughly $38.69 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 TEK market-implied 1-standard-deviation expected move is approximately 11.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TEK?
- Collars on TEK hedge an existing long TEK 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 TEK implied volatility affect this collar?
- TEK ATM IV is at 38.40% with IV rank near 29.43%, 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.