FTAI Collar Strategy
FTAI (FTAI Aviation Ltd.), in the Industrials sector, (Rental & Leasing Services industry), listed on NASDAQ.
FTAI Aviation Ltd. is a company dedicated to the ownership and acquisition of critical equipment for the aviation and offshore energy industries, thereby supporting the worldwide movement of goods and people. The company operates through two primary divisions. The Aviation Leasing segment is responsible for managing, leasing, and selling aviation assets, which include commercial aircraft and their engines, to customers. By the end of 2023, specifically December 31st, this division's managed portfolio encompassed 363 aviation assets in total, consisting of 96 commercial aircraft and 267 engines. Notably, this count included 8 aircraft and 17 engines located in Russia. The Aerospace Products segment focuses on the entire lifecycle of aircraft engines and their aftermarket components, covering their development, production, maintenance, and sales.
FTAI (FTAI Aviation Ltd.) trades in the Industrials sector, specifically Rental & Leasing Services, with a market capitalization of approximately $26.68B, a trailing P/E of 49.72, a beta of 1.52 versus the broader market, a 52-week range of 108.47-323.51, average daily share volume of 1.2M, a public-listing history dating back to 2015, approximately 580 full-time employees. These structural characteristics shape how FTAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.52 indicates FTAI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 49.72 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. FTAI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FTAI?
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 FTAI snapshot
As of June 30, 2026, spot at $269.64, ATM IV 81.54%, IV rank 88.71%, expected move 23.38%. The collar on FTAI 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 31-day expiry.
Why this collar structure on FTAI specifically: IV regime affects collar pricing on both sides; elevated FTAI IV at 81.54% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 23.38% (roughly $63.04 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTAI should anchor to the underlying notional of $269.64 per share and to the trader's directional view on FTAI stock.
FTAI collar setup
The FTAI 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 FTAI near $269.64, the first option leg uses a $285.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTAI chain at a 31-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 FTAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $269.64 | long |
| Sell 1 | Call | $285.00 | $20.55 |
| Buy 1 | Put | $255.00 | $17.75 |
FTAI collar risk and reward
- Net Premium / Debit
- -$26,684.00
- Max Profit (per contract)
- $1,816.00
- Max Loss (per contract)
- -$1,184.00
- Breakeven(s)
- $266.84
- Risk / Reward Ratio
- 1.534
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.
FTAI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FTAI. 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% | -$1,184.00 |
| $59.63 | -77.9% | -$1,184.00 |
| $119.25 | -55.8% | -$1,184.00 |
| $178.86 | -33.7% | -$1,184.00 |
| $238.48 | -11.6% | -$1,184.00 |
| $298.10 | +10.6% | +$1,816.00 |
| $357.72 | +32.7% | +$1,816.00 |
| $417.33 | +54.8% | +$1,816.00 |
| $476.95 | +76.9% | +$1,816.00 |
| $536.57 | +99.0% | +$1,816.00 |
When traders use collar on FTAI
Collars on FTAI hedge an existing long FTAI stock 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.
FTAI thesis for this collar
The market-implied 1-standard-deviation range for FTAI extends from approximately $206.60 on the downside to $332.68 on the upside. A FTAI collar hedges an existing long FTAI 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 FTAI IV rank near 88.71% 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 FTAI at 81.54%. As a Industrials name, FTAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTAI-specific events.
FTAI 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. FTAI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTAI alongside the broader basket even when FTAI-specific fundamentals are unchanged. Always rebuild the position from current FTAI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FTAI?
- A collar on FTAI is the collar strategy applied to FTAI (stock). 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 FTAI stock trading near $269.64, the strikes shown on this page are snapped to the nearest listed FTAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTAI 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 FTAI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 81.54%), the computed maximum profit is $1,816.00 per contract and the computed maximum loss is -$1,184.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTAI collar?
- The breakeven for the FTAI collar priced on this page is roughly $266.84 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 FTAI market-implied 1-standard-deviation expected move is approximately 23.38%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FTAI?
- Collars on FTAI hedge an existing long FTAI stock 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 FTAI implied volatility affect this collar?
- FTAI ATM IV is at 81.54% with IV rank near 88.71%, 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.