How are TMH 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 TMH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.60%), the computed maximum profit is $269.00 per contract and the computed maximum loss is -$231.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TMH collar?

The breakeven for the TMH collar priced on this page is roughly $46.31 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 TMH market-implied 1-standard-deviation expected move is approximately 11.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TMH implied volatility affect this collar?

TMH ATM IV is at 40.60% with IV rank near 47.26%, 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.

TMH Collar Strategy

TMH (Toyota Motor Corporation ADRhedged), in the Financial Services sector, (Asset Management industry), listed on AMEX.

Under typical market conditions, this fund primarily allocates a significant portion, at least 95%, of its net assets to American Depositary Receipts (ADRs) representing shares of the Toyota Motor Corporation. Beyond its direct investment in these ADRs, the fund also employs a specialized currency swap agreement (referred to as a Currency Hedge Contract). This contract is specifically engineered to counteract the effects of fluctuations in the currency exchange rate between the U.S. dollar and the Japanese Yen. It is important to note that this investment vehicle is classified as non-diversified.

TMH (Toyota Motor Corporation ADRhedged) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $3.42B, a trailing P/E of 40.37, a beta of -0.15 versus the broader market, a 52-week range of 44.937-65.814, average daily share volume of 1K, a public-listing history dating back to 2025. These structural characteristics shape how TMH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.15 indicates TMH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 40.37 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TMH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on TMH?

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 TMH snapshot

As of June 29, 2026, spot at $46.34, ATM IV 40.60%, IV rank 47.26%, expected move 11.64%. The collar on TMH 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 18-day expiry.

Why this collar structure on TMH specifically: IV regime affects collar pricing on both sides; mid-range TMH IV at 40.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.64% (roughly $5.39 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TMH expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMH should anchor to the underlying notional of $46.34 per share and to the trader's directional view on TMH etf.

TMH collar setup

The TMH 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 TMH near $46.34, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMH chain at a 18-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 TMH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$46.34	long
Sell 1	Call	$49.00	$0.73
Buy 1	Put	$44.00	$0.70

TMH collar risk and reward

Net Premium / Debit: -$4,631.00
Max Profit (per contract): $269.00
Max Loss (per contract): -$231.00
Breakeven(s): $46.31
Risk / Reward Ratio: 1.165

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.

TMH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TMH. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$231.00
$10.25	-77.9%	-$231.00
$20.50	-55.8%	-$231.00
$30.74	-33.7%	-$231.00
$40.99	-11.5%	-$231.00
$51.23	+10.6%	+$269.00
$61.48	+32.7%	+$269.00
$71.72	+54.8%	+$269.00
$81.97	+76.9%	+$269.00
$92.21	+99.0%	+$269.00

When traders use collar on TMH

Collars on TMH hedge an existing long TMH 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.

TMH thesis for this collar

The market-implied 1-standard-deviation range for TMH extends from approximately $40.95 on the downside to $51.73 on the upside. A TMH collar hedges an existing long TMH 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 TMH IV rank near 47.26% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TMH should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TMH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMH-specific events.

TMH 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. TMH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMH alongside the broader basket even when TMH-specific fundamentals are unchanged. Always rebuild the position from current TMH chain quotes before placing a trade.

Frequently asked questions

What is a collar on TMH?: A collar on TMH is the collar strategy applied to TMH (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 TMH etf trading near $46.34, the strikes shown on this page are snapped to the nearest listed TMH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TMH 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 TMH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.60%), the computed maximum profit is $269.00 per contract and the computed maximum loss is -$231.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TMH collar?: The breakeven for the TMH collar priced on this page is roughly $46.31 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 TMH market-implied 1-standard-deviation expected move is approximately 11.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TMH?: Collars on TMH hedge an existing long TMH 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 TMH implied volatility affect this collar?: TMH ATM IV is at 40.60% with IV rank near 47.26%, 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.