TMAT Collar Strategy
TMAT (Main Thematic Innovation ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The adviser seeks to achieve its objective through dynamic thematic rotation. The Adviser focuses its research primarily on identifying emerging, disruptive, and innovative themes that have a large market demand or "addressable market". The Adviser rotates among themes with large addressable markets which may range from nascent technologies to those on the cusp of widespread adoption and buys securities of ETFs investing in those themes.
TMAT (Main Thematic Innovation ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $211.4M, a beta of 1.77 versus the broader market, a 52-week range of 20.22-28.766, average daily share volume of 20K, a public-listing history dating back to 2021. These structural characteristics shape how TMAT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.77 indicates TMAT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TMAT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TMAT?
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 TMAT snapshot
As of May 15, 2026, spot at $27.77, ATM IV 32.60%, IV rank 4.17%, expected move 9.35%. The collar on TMAT 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 TMAT specifically: IV regime affects collar pricing on both sides; compressed TMAT IV at 32.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.35% (roughly $2.60 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 TMAT expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMAT should anchor to the underlying notional of $27.77 per share and to the trader's directional view on TMAT etf.
TMAT collar setup
The TMAT 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 TMAT near $27.77, the first option leg uses a $29.16 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMAT 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 TMAT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.77 | long |
| Sell 1 | Call | $29.16 | N/A |
| Buy 1 | Put | $26.38 | N/A |
TMAT 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.
TMAT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TMAT. 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 TMAT
Collars on TMAT hedge an existing long TMAT 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.
TMAT thesis for this collar
The market-implied 1-standard-deviation range for TMAT extends from approximately $25.17 on the downside to $30.37 on the upside. A TMAT collar hedges an existing long TMAT 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 TMAT IV rank near 4.17% 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 TMAT at 32.60%. As a Financial Services name, TMAT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMAT-specific events.
TMAT 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. TMAT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMAT alongside the broader basket even when TMAT-specific fundamentals are unchanged. Always rebuild the position from current TMAT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TMAT?
- A collar on TMAT is the collar strategy applied to TMAT (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 TMAT etf trading near $27.77, the strikes shown on this page are snapped to the nearest listed TMAT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMAT 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 TMAT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.60%), 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 TMAT collar?
- The breakeven for the TMAT 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 TMAT market-implied 1-standard-deviation expected move is approximately 9.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TMAT?
- Collars on TMAT hedge an existing long TMAT 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 TMAT implied volatility affect this collar?
- TMAT ATM IV is at 32.60% with IV rank near 4.17%, 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.