ITRI Collar Strategy
ITRI (Itron, Inc.), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NASDAQ.
Itron, Inc., a technology and service company, provides end-to-end solutions that help manage operations in the energy, water, and smart city space worldwide. The company operates through three segments: Device Solutions, Networked Solutions, and Outcomes. The Device Solutions segment offers hardware products that are used for measurement, control, or sensing. The Networked Solutions segment provides a combination of communicating devices, such as smart meters, modules, endpoints, and sensors; network infrastructure; and associated application software for acquiring and transporting application-specific data. The Outcomes segment offers value-added, enhanced software and services for managing, organizing, analyzing, and interpreting data to enhance decision making, maximize operational profitability, drive resource efficiency, and deliver results for consumers, utilities, and smart cities. In addition, it offers implementation, project management, installation, consulting, and post-sale maintenance support services, as well as cloud and software-as-a-service; and extended or customer-specific warranties.
ITRI (Itron, Inc.) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $3.65B, a trailing P/E of 12.73, a beta of 1.35 versus the broader market, a 52-week range of 78.53-142, average daily share volume of 1.1M, a public-listing history dating back to 1993, approximately 5K full-time employees. These structural characteristics shape how ITRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates ITRI 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 ITRI?
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 ITRI snapshot
As of May 15, 2026, spot at $79.26, ATM IV 41.80%, IV rank 30.12%, expected move 11.98%. The collar on ITRI 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 63-day expiry.
Why this collar structure on ITRI specifically: IV regime affects collar pricing on both sides; mid-range ITRI IV at 41.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.98% (roughly $9.50 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ITRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITRI should anchor to the underlying notional of $79.26 per share and to the trader's directional view on ITRI stock.
ITRI collar setup
The ITRI 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 ITRI near $79.26, the first option leg uses a $85.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ITRI chain at a 63-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 ITRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $79.26 | long |
| Sell 1 | Call | $85.00 | $3.95 |
| Buy 1 | Put | $75.00 | $3.45 |
ITRI collar risk and reward
- Net Premium / Debit
- -$7,876.00
- Max Profit (per contract)
- $624.00
- Max Loss (per contract)
- -$376.00
- Breakeven(s)
- $78.76
- Risk / Reward Ratio
- 1.660
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.
ITRI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ITRI. 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% | -$376.00 |
| $17.53 | -77.9% | -$376.00 |
| $35.06 | -55.8% | -$376.00 |
| $52.58 | -33.7% | -$376.00 |
| $70.10 | -11.6% | -$376.00 |
| $87.63 | +10.6% | +$624.00 |
| $105.15 | +32.7% | +$624.00 |
| $122.68 | +54.8% | +$624.00 |
| $140.20 | +76.9% | +$624.00 |
| $157.72 | +99.0% | +$624.00 |
When traders use collar on ITRI
Collars on ITRI hedge an existing long ITRI 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.
ITRI thesis for this collar
The market-implied 1-standard-deviation range for ITRI extends from approximately $69.76 on the downside to $88.76 on the upside. A ITRI collar hedges an existing long ITRI 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 ITRI IV rank near 30.12% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ITRI should anchor more to the directional view and the expected-move geometry. As a Technology name, ITRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ITRI-specific events.
ITRI 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. ITRI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ITRI alongside the broader basket even when ITRI-specific fundamentals are unchanged. Always rebuild the position from current ITRI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ITRI?
- A collar on ITRI is the collar strategy applied to ITRI (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 ITRI stock trading near $79.26, the strikes shown on this page are snapped to the nearest listed ITRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ITRI 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 ITRI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 41.80%), the computed maximum profit is $624.00 per contract and the computed maximum loss is -$376.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ITRI collar?
- The breakeven for the ITRI collar priced on this page is roughly $78.76 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 ITRI market-implied 1-standard-deviation expected move is approximately 11.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ITRI?
- Collars on ITRI hedge an existing long ITRI 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 ITRI implied volatility affect this collar?
- ITRI ATM IV is at 41.80% with IV rank near 30.12%, 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.