TMFC Collar Strategy
TMFC (Motley Fool 100 Index ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
Under normal circumstances, at least 80% of the fund's total assets (exclusive of any collateral held from securities lending) will be invested in the component securities of the index. The index was established by TMF in 2017 and is a proprietary, rules-based index designed to track the performance of the 100 largest, most liquid U.S. companies that have been recommended by TMF’s analysts and newsletters. The fund is non-diversified.
TMFC (Motley Fool 100 Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.01B, a beta of 1.10 versus the broader market, a 52-week range of 59.5-77.575, average daily share volume of 102K, a public-listing history dating back to 2018. These structural characteristics shape how TMFC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.10 places TMFC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TMFC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TMFC?
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 TMFC snapshot
As of May 15, 2026, spot at $77.30, ATM IV 22.30%, IV rank 35.53%, expected move 6.39%. The collar on TMFC 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 154-day expiry.
Why this collar structure on TMFC specifically: IV regime affects collar pricing on both sides; mid-range TMFC IV at 22.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.39% (roughly $4.94 on the underlying). The 154-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMFC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMFC should anchor to the underlying notional of $77.30 per share and to the trader's directional view on TMFC etf.
TMFC collar setup
The TMFC 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 TMFC near $77.30, the first option leg uses a $81.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMFC chain at a 154-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 TMFC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $77.30 | long |
| Sell 1 | Call | $81.00 | $3.50 |
| Buy 1 | Put | $73.00 | $2.70 |
TMFC collar risk and reward
- Net Premium / Debit
- -$7,650.00
- Max Profit (per contract)
- $450.00
- Max Loss (per contract)
- -$350.00
- Breakeven(s)
- $76.50
- Risk / Reward Ratio
- 1.286
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.
TMFC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TMFC. 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% | -$350.00 |
| $17.10 | -77.9% | -$350.00 |
| $34.19 | -55.8% | -$350.00 |
| $51.28 | -33.7% | -$350.00 |
| $68.37 | -11.6% | -$350.00 |
| $85.46 | +10.6% | +$450.00 |
| $102.55 | +32.7% | +$450.00 |
| $119.64 | +54.8% | +$450.00 |
| $136.73 | +76.9% | +$450.00 |
| $153.82 | +99.0% | +$450.00 |
When traders use collar on TMFC
Collars on TMFC hedge an existing long TMFC 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.
TMFC thesis for this collar
The market-implied 1-standard-deviation range for TMFC extends from approximately $72.36 on the downside to $82.24 on the upside. A TMFC collar hedges an existing long TMFC 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 TMFC IV rank near 35.53% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TMFC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TMFC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMFC-specific events.
TMFC 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. TMFC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMFC alongside the broader basket even when TMFC-specific fundamentals are unchanged. Always rebuild the position from current TMFC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TMFC?
- A collar on TMFC is the collar strategy applied to TMFC (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 TMFC etf trading near $77.30, the strikes shown on this page are snapped to the nearest listed TMFC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMFC 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 TMFC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.30%), the computed maximum profit is $450.00 per contract and the computed maximum loss is -$350.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TMFC collar?
- The breakeven for the TMFC collar priced on this page is roughly $76.50 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 TMFC market-implied 1-standard-deviation expected move is approximately 6.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TMFC?
- Collars on TMFC hedge an existing long TMFC 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 TMFC implied volatility affect this collar?
- TMFC ATM IV is at 22.30% with IV rank near 35.53%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.