FTDR Collar Strategy
FTDR (Frontdoor, Inc.), in the Consumer Cyclical sector, (Personal Products & Services industry), listed on NASDAQ.
Frontdoor, Inc. provides home service plans in the United States. The company's home service plans cover the repair or replacement of principal components of approximately 20 home systems and appliances, including electrical, plumbing, water heaters, refrigerators, dishwashers, and ranges/ovens/cooktops, as well as electronics, pools, and spas and pumps; and central heating, ventilation, and air conditioning systems. It also offers ProConnect on-demand home services business and Streem, a technology platform that uses augmented reality, computer vision, and machine learning that helps home service professionals quickly and accurately diagnose breakdowns and complete repairs. The company serves homeowners under the American Home Shield, HSA, Landmark Home Warranty, OneGuard, Frontdoor, and Streem brands. The company was founded in 1971 and is headquartered in Memphis, Tennessee.
FTDR (Frontdoor, Inc.) trades in the Consumer Cyclical sector, specifically Personal Products & Services, with a market capitalization of approximately $4.40B, a trailing P/E of 17.01, a beta of 1.56 versus the broader market, a 52-week range of 48.47-70.77, average daily share volume of 717K, a public-listing history dating back to 2018, approximately 2K full-time employees. These structural characteristics shape how FTDR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.56 indicates FTDR has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on FTDR?
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 FTDR snapshot
As of May 15, 2026, spot at $61.02, ATM IV 35.50%, IV rank 4.45%, expected move 10.18%. The collar on FTDR 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 FTDR specifically: IV regime affects collar pricing on both sides; compressed FTDR IV at 35.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.18% (roughly $6.21 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 FTDR expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTDR should anchor to the underlying notional of $61.02 per share and to the trader's directional view on FTDR stock.
FTDR collar setup
The FTDR 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 FTDR near $61.02, the first option leg uses a $64.07 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTDR 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 FTDR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $61.02 | long |
| Sell 1 | Call | $64.07 | N/A |
| Buy 1 | Put | $57.97 | N/A |
FTDR 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.
FTDR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FTDR. 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 FTDR
Collars on FTDR hedge an existing long FTDR 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.
FTDR thesis for this collar
The market-implied 1-standard-deviation range for FTDR extends from approximately $54.81 on the downside to $67.23 on the upside. A FTDR collar hedges an existing long FTDR 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 FTDR IV rank near 4.45% 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 FTDR at 35.50%. As a Consumer Cyclical name, FTDR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTDR-specific events.
FTDR 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. FTDR positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTDR alongside the broader basket even when FTDR-specific fundamentals are unchanged. Always rebuild the position from current FTDR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FTDR?
- A collar on FTDR is the collar strategy applied to FTDR (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 FTDR stock trading near $61.02, the strikes shown on this page are snapped to the nearest listed FTDR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTDR 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 FTDR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 35.50%), 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 FTDR collar?
- The breakeven for the FTDR 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 FTDR market-implied 1-standard-deviation expected move is approximately 10.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FTDR?
- Collars on FTDR hedge an existing long FTDR 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 FTDR implied volatility affect this collar?
- FTDR ATM IV is at 35.50% with IV rank near 4.45%, 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.