ITRN Collar Strategy
ITRN (Ituran Location and Control Ltd.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Ituran Location and Control Ltd., together with its subsidiaries, provides location-based telematics services and machine-to-machine telematics products. The company's Telematics services segment provides stolen vehicle recovery and tracking services, which locate, track, and recover stolen vehicles for its subscribers; fleet management services that enable corporate and individual customers to track and manage their vehicles in real time; and locator services that allow customers to protect valuable merchandise and equipment. It also offers on-demand navigation guidance, information, and assistance, including the provision of traffic reports and directions, as well as information on the location of gas stations, car repair shops, post offices, hospitals, and other facilities; and Connected Car, a service platform that includes a back-office application, a telematics device installed in the vehicle, mobile apps for IOS and Android users, and interface using the car infotainment screen, as well as usage based insurance and auto financing. This segment serves insurance companies and agents, car manufacturers, dealers and importers, cooperative sales channels, and private subscribers. Its Telematics Products segment provides Base Site, a radio receiver that includes a processor and a data computation unit to collect and send data to and from transponders, and to control centers; Control Center, a center consisting of software used to collect data from various base sites, conduct location calculations, and transmit location data to various customers and law enforcement agencies; navigation and tracking devices installed in vehicles; and SMART, a portable transmitter installed in vehicles that sends a signal to the base site enabling the location of vehicles, equipment, or an individual. The company was incorporated in 1994 and is headquartered in Azor, Israel.
ITRN (Ituran Location and Control Ltd.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $1.17B, a trailing P/E of 20.19, a beta of 0.75 versus the broader market, a 52-week range of 32.71-62.31, average daily share volume of 119K, a public-listing history dating back to 2005, approximately 3K full-time employees. These structural characteristics shape how ITRN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.75 places ITRN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. ITRN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ITRN?
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 ITRN snapshot
As of May 15, 2026, spot at $57.36, ATM IV 38.00%, IV rank 15.71%, expected move 10.89%. The collar on ITRN 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 ITRN specifically: IV regime affects collar pricing on both sides; compressed ITRN IV at 38.00% 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 $6.25 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 ITRN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ITRN should anchor to the underlying notional of $57.36 per share and to the trader's directional view on ITRN stock.
ITRN collar setup
The ITRN 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 ITRN near $57.36, the first option leg uses a $60.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ITRN 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 ITRN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $57.36 | long |
| Sell 1 | Call | $60.23 | N/A |
| Buy 1 | Put | $54.49 | N/A |
ITRN 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.
ITRN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ITRN. 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 ITRN
Collars on ITRN hedge an existing long ITRN 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.
ITRN thesis for this collar
The market-implied 1-standard-deviation range for ITRN extends from approximately $51.11 on the downside to $63.61 on the upside. A ITRN collar hedges an existing long ITRN 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 ITRN IV rank near 15.71% 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 ITRN at 38.00%. As a Technology name, ITRN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ITRN-specific events.
ITRN 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. ITRN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ITRN alongside the broader basket even when ITRN-specific fundamentals are unchanged. Always rebuild the position from current ITRN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ITRN?
- A collar on ITRN is the collar strategy applied to ITRN (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 ITRN stock trading near $57.36, the strikes shown on this page are snapped to the nearest listed ITRN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ITRN 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 ITRN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), 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 ITRN collar?
- The breakeven for the ITRN 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 ITRN 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 ITRN?
- Collars on ITRN hedge an existing long ITRN 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 ITRN implied volatility affect this collar?
- ITRN ATM IV is at 38.00% with IV rank near 15.71%, 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.