TLH Collar Strategy
TLH (iShares 10-20 Year Treasury Bond ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.
The iShares 10-20 Year Treasury Bond ETF seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between ten and twenty years.
TLH (iShares 10-20 Year Treasury Bond ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $10.75B, a beta of 2.00 versus the broader market, a 52-week range of 91.9-105.47, average daily share volume of 1.5M, a public-listing history dating back to 2007. These structural characteristics shape how TLH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.00 indicates TLH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TLH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TLH?
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.
TLH snapshot
As of September 30, 2026, spot at $92.02, ATM IV 14.90%, IV rank 90.68%, expected move 4.27%. The collar on TLH below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.
Why this collar structure on TLH specifically: IV regime affects collar pricing on both sides; elevated TLH IV at 14.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.27% (roughly $3.93 on the underlying). The 16-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TLH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TLH should anchor to the underlying notional of $92.02 per share and to the trader's directional view on TLH etf.
TLH collar setup
The TLH collar below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TLH at $92.02 on that close, the first option leg uses a $97.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TLH chain at a 16-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 TLH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $92.02 | long |
| Sell 1 | Call | $97.00 | $0.07 |
| Buy 1 | Put | $87.00 | $0.02 |
TLH collar risk and reward
- Net Premium / Debit
- -$9,197.00
- Max Profit (per contract)
- $503.00
- Max Loss (per contract)
- -$497.00
- Breakeven(s)
- $91.97
- Risk / Reward Ratio
- 1.012
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.
TLH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TLH. 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% | -$497.00 |
| $20.36 | -77.9% | -$497.00 |
| $40.70 | -55.8% | -$497.00 |
| $61.05 | -33.7% | -$497.00 |
| $81.39 | -11.6% | -$497.00 |
| $101.74 | +10.6% | +$503.00 |
| $122.08 | +32.7% | +$503.00 |
| $142.43 | +54.8% | +$503.00 |
| $162.77 | +76.9% | +$503.00 |
| $183.12 | +99.0% | +$503.00 |
When traders use collar on TLH
Collars on TLH hedge an existing long TLH 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.
TLH thesis for this collar
The market-implied 1-standard-deviation range for TLH extends from approximately $88.09 on the downside to $95.95 on the upside. A TLH collar hedges an existing long TLH 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 TLH IV rank near 90.68% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on TLH at 14.90%. As a Financial Services name, TLH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TLH-specific events.
TLH 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. TLH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TLH alongside the broader basket even when TLH-specific fundamentals are unchanged. Always rebuild the position from current TLH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TLH?
- A collar on TLH is the collar strategy applied to TLH (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 TLH etf at $92.02 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed TLH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TLH 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 TLH collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 14.90%), the computed maximum profit is $503.00 per contract and the computed maximum loss is -$497.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TLH collar?
- The breakeven for the TLH collar priced on this page is roughly $91.97 at expiration, derived from the September 30, 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 TLH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TLH?
- Collars on TLH hedge an existing long TLH 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 TLH implied volatility affect this collar?
- TLH ATM IV is at 14.90% with IV rank near 90.68%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.