How are FTK 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 FTK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 79.90%), the computed maximum profit is $69.50 per contract and the computed maximum loss is -$130.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a FTK collar?

The breakeven for the FTK collar priced on this page is roughly $20.31 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 FTK market-implied 1-standard-deviation expected move is approximately 22.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current FTK implied volatility affect this collar?

FTK ATM IV is at 79.90% with IV rank near 40.12%, 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.

FTK Collar Strategy

FTK (Flotek Industries, Inc.), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.

Flotek Industries, Inc. operates as a technology-driven chemistry and data company that serves customers across industrial, commercial, and consumer markets in the United States, the United Arab Emirates, and internationally. It operates in two segments, Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers and cleans surfaces in commercial and personal settings to help reduce the spread of bacteria, viruses, and germs. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. This segment's data platforms combine the energy industry's field-deployable, inline optical analyzer with proprietary cloud visualization and analytics.

FTK (Flotek Industries, Inc.) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $564.0M, a trailing P/E of 22.67, a beta of 1.39 versus the broader market, a 52-week range of 10.95-20.41, average daily share volume of 265K, a public-listing history dating back to 2005, approximately 142 full-time employees. These structural characteristics shape how FTK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.39 indicates FTK 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 FTK?

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 FTK snapshot

As of May 15, 2026, spot at $19.73, ATM IV 79.90%, IV rank 40.12%, expected move 22.91%. The collar on FTK 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 FTK specifically: IV regime affects collar pricing on both sides; mid-range FTK IV at 79.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.91% (roughly $4.52 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 FTK expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTK should anchor to the underlying notional of $19.73 per share and to the trader's directional view on FTK stock.

FTK collar setup

The FTK 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 FTK near $19.73, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTK 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 FTK shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$19.73	long
Sell 1	Call	$21.00	$1.15
Buy 1	Put	$19.00	$1.73

FTK collar risk and reward

Net Premium / Debit: -$2,030.50
Max Profit (per contract): $69.50
Max Loss (per contract): -$130.50
Breakeven(s): $20.31
Risk / Reward Ratio: 0.533

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.

FTK collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on FTK. 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	-99.9%	-$130.50
$4.37	-77.8%	-$130.50
$8.73	-55.7%	-$130.50
$13.09	-33.6%	-$130.50
$17.46	-11.5%	-$130.50
$21.82	+10.6%	+$69.50
$26.18	+32.7%	+$69.50
$30.54	+54.8%	+$69.50
$34.90	+76.9%	+$69.50
$39.26	+99.0%	+$69.50

When traders use collar on FTK

Collars on FTK hedge an existing long FTK 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.

FTK thesis for this collar

The market-implied 1-standard-deviation range for FTK extends from approximately $15.21 on the downside to $24.25 on the upside. A FTK collar hedges an existing long FTK 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 FTK IV rank near 40.12% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FTK should anchor more to the directional view and the expected-move geometry. As a Energy name, FTK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTK-specific events.

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

Frequently asked questions

What is a collar on FTK?: A collar on FTK is the collar strategy applied to FTK (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 FTK stock trading near $19.73, the strikes shown on this page are snapped to the nearest listed FTK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are FTK 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 FTK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 79.90%), the computed maximum profit is $69.50 per contract and the computed maximum loss is -$130.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a FTK collar?: The breakeven for the FTK collar priced on this page is roughly $20.31 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 FTK market-implied 1-standard-deviation expected move is approximately 22.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on FTK?: Collars on FTK hedge an existing long FTK 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 FTK implied volatility affect this collar?: FTK ATM IV is at 79.90% with IV rank near 40.12%, 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.