FTNT Collar Strategy
FTNT (Fortinet, Inc.), in the Technology sector, (Software - Infrastructure industry), listed on NASDAQ.
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, web filtering, anti-spam, and wide area network acceleration. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers their end devices; FortiAP product family, which provides secure wireless networking solutions; FortiExtender, a hardware appliance; FortiAnalyzer product family, which offers centralized network logging, analyzing, and reporting solutions; and FortiManager product family that provides central and scalable management solution for its FortiGate products. It offers FortiWeb product family provides web application firewall solutions; FortiMail product family that secure email gateway solutions; FortiSandbox technology that delivers proactive detection and mitigation services; FortiClient that provides endpoint protection with pattern-based anti-malware, behavior-based exploit protection, web-filtering, and an application firewall; FortiToken and FortiAuthenticator product families for multi-factor authentication to safeguard systems, assets, and data; and FortiEDR/XDR, an endpoint protection solution that provides both comprehensive machine-learning anti-malware execution and real-time post-infection protection. It provides security subscription, technical support, professional, and training services. It sells its security solutions to channel partners and directly to various customers in telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare industries.
FTNT (Fortinet, Inc.) trades in the Technology sector, specifically Software - Infrastructure, with a market capitalization of approximately $86.23B, a trailing P/E of 44.49, a beta of 0.92 versus the broader market, a 52-week range of 70.12-117.84, average daily share volume of 6.2M, a public-listing history dating back to 2009, approximately 15K full-time employees. These structural characteristics shape how FTNT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places FTNT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 44.49 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.
What is a collar on FTNT?
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 FTNT snapshot
As of May 15, 2026, spot at $122.74, ATM IV 37.98%, IV rank 36.88%, expected move 10.89%. The collar on FTNT 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 28-day expiry.
Why this collar structure on FTNT specifically: IV regime affects collar pricing on both sides; mid-range FTNT IV at 37.98% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.89% (roughly $13.36 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FTNT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FTNT should anchor to the underlying notional of $122.74 per share and to the trader's directional view on FTNT stock.
FTNT collar setup
The FTNT 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 FTNT near $122.74, the first option leg uses a $129.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FTNT chain at a 28-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 FTNT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $122.74 | long |
| Sell 1 | Call | $129.00 | $2.60 |
| Buy 1 | Put | $117.00 | $2.70 |
FTNT collar risk and reward
- Net Premium / Debit
- -$12,284.00
- Max Profit (per contract)
- $616.00
- Max Loss (per contract)
- -$584.00
- Breakeven(s)
- $122.84
- Risk / Reward Ratio
- 1.055
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.
FTNT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FTNT. 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% | -$584.00 |
| $27.15 | -77.9% | -$584.00 |
| $54.28 | -55.8% | -$584.00 |
| $81.42 | -33.7% | -$584.00 |
| $108.56 | -11.6% | -$584.00 |
| $135.70 | +10.6% | +$616.00 |
| $162.83 | +32.7% | +$616.00 |
| $189.97 | +54.8% | +$616.00 |
| $217.11 | +76.9% | +$616.00 |
| $244.25 | +99.0% | +$616.00 |
When traders use collar on FTNT
Collars on FTNT hedge an existing long FTNT 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.
FTNT thesis for this collar
The market-implied 1-standard-deviation range for FTNT extends from approximately $109.38 on the downside to $136.10 on the upside. A FTNT collar hedges an existing long FTNT 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 FTNT IV rank near 36.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FTNT should anchor more to the directional view and the expected-move geometry. As a Technology name, FTNT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FTNT-specific events.
FTNT 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. FTNT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FTNT alongside the broader basket even when FTNT-specific fundamentals are unchanged. Always rebuild the position from current FTNT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FTNT?
- A collar on FTNT is the collar strategy applied to FTNT (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 FTNT stock trading near $122.74, the strikes shown on this page are snapped to the nearest listed FTNT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FTNT 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 FTNT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.98%), the computed maximum profit is $616.00 per contract and the computed maximum loss is -$584.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FTNT collar?
- The breakeven for the FTNT collar priced on this page is roughly $122.84 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 FTNT market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FTNT?
- Collars on FTNT hedge an existing long FTNT 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 FTNT implied volatility affect this collar?
- FTNT ATM IV is at 37.98% with IV rank near 36.88%, 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.