LTRX Collar Strategy
LTRX (Lantronix, Inc.), in the Technology sector, (Communication Equipment industry), listed on NASDAQ.
Lantronix, Inc. is a technology company specializing in the delivery of hardware, software-as-a-service (SaaS), and professional engineering services. Its solutions are designed to support edge computing, the Internet of Things (IoT), and remote environment management (REM) for clients across the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. Within its IoT portfolio, Lantronix offers a diverse range of products, categorized broadly into Connectivity, Compute, and Telematics solutions. Its IoT Connectivity offerings facilitate robust wired and wireless connections, significantly boosting the functionality and effectiveness of contemporary electronic systems. These solutions encompass secure network access, Power over Ethernet (PoE) for device power, application hosting, and essential protocol and media conversion, ensuring secure and efficient operation for geographically dispersed IoT implementations. The IoT Compute segment delivers processing power tailored to customer demands for advanced data transformation, computer vision, machine learning, augmented/virtual reality (AR/VR) applications, as well as audio/video aggregation, distribution, and bespoke software solutions.
LTRX (Lantronix, Inc.) trades in the Technology sector, specifically Communication Equipment, with a market capitalization of approximately $246.7M, a beta of 1.66 versus the broader market, a 52-week range of 2.76-8.75, average daily share volume of 1.1M, a public-listing history dating back to 2000, approximately 367 full-time employees. These structural characteristics shape how LTRX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.66 indicates LTRX 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 LTRX?
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 LTRX snapshot
As of June 30, 2026, spot at $5.92, ATM IV 88.60%, IV rank 27.02%, expected move 25.40%. The collar on LTRX 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 17-day expiry.
Why this collar structure on LTRX specifically: IV regime affects collar pricing on both sides; compressed LTRX IV at 88.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.40% (roughly $1.50 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LTRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on LTRX should anchor to the underlying notional of $5.92 per share and to the trader's directional view on LTRX stock.
LTRX collar setup
The LTRX 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 LTRX near $5.92, the first option leg uses a $6.22 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LTRX chain at a 17-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 LTRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.92 | long |
| Sell 1 | Call | $6.22 | N/A |
| Buy 1 | Put | $5.62 | N/A |
LTRX 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.
LTRX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LTRX. 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 LTRX
Collars on LTRX hedge an existing long LTRX 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.
LTRX thesis for this collar
The market-implied 1-standard-deviation range for LTRX extends from approximately $4.42 on the downside to $7.42 on the upside. A LTRX collar hedges an existing long LTRX 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 LTRX IV rank near 27.02% 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 LTRX at 88.60%. As a Technology name, LTRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LTRX-specific events.
LTRX 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. LTRX positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LTRX alongside the broader basket even when LTRX-specific fundamentals are unchanged. Always rebuild the position from current LTRX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LTRX?
- A collar on LTRX is the collar strategy applied to LTRX (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 LTRX stock trading near $5.92, the strikes shown on this page are snapped to the nearest listed LTRX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LTRX 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 LTRX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 88.60%), 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 LTRX collar?
- The breakeven for the LTRX 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 LTRX market-implied 1-standard-deviation expected move is approximately 25.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LTRX?
- Collars on LTRX hedge an existing long LTRX 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 LTRX implied volatility affect this collar?
- LTRX ATM IV is at 88.60% with IV rank near 27.02%, 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.