MTSI Collar Strategy
MTSI (MACOM Technology Solutions Holdings, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
MACOM Technology Solutions Holdings, Inc., together with its subsidiaries, designs and manufactures analog semiconductor solutions for use in wireless and wireline applications across the radio frequency (RF), microwave, millimeter wave, and lightwave spectrum in the United States, China, the Asia Pacific, and internationally. The company offers a portfolio of standard and custom devices, including integrated circuits, multi-chip modules, diodes, amplifiers, switches and switch limiters, passive and active components, and subsystems. Its semiconductor products are electronic components that are incorporated in electronic systems, such as wireless basestations, high-capacity optical networks, radar, and medical systems and test and measurement. The company serves various markets comprising telecommunication that includes carrier infrastructure, which comprise long-haul/metro, 5G, and fiber-to-the-X/passive optical network; industrial and defense, including military and commercial radar, RF jammers, electronic countermeasures, and communication data links, as well as multi-market applications, such as industrial, medical, test and measurement, and scientific applications; and data centers. It sells its products through direct sales force, applications engineering staff, independent sales representatives, resellers, and distributors. The company was founded in 1950 and is headquartered in Lowell, Massachusetts.
MTSI (MACOM Technology Solutions Holdings, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $29.11B, a trailing P/E of 162.02, a beta of 1.60 versus the broader market, a 52-week range of 118.16-384.58, average daily share volume of 1.2M, a public-listing history dating back to 2012, approximately 2K full-time employees. These structural characteristics shape how MTSI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.60 indicates MTSI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 162.02 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 MTSI?
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 MTSI snapshot
As of May 15, 2026, spot at $380.86, ATM IV 72.30%, IV rank 41.77%, expected move 20.73%. The collar on MTSI 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 MTSI specifically: IV regime affects collar pricing on both sides; mid-range MTSI IV at 72.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.73% (roughly $78.94 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 MTSI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MTSI should anchor to the underlying notional of $380.86 per share and to the trader's directional view on MTSI stock.
MTSI collar setup
The MTSI 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 MTSI near $380.86, the first option leg uses a $400.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MTSI 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 MTSI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $380.86 | long |
| Sell 1 | Call | $400.00 | $26.80 |
| Buy 1 | Put | $360.00 | $23.00 |
MTSI collar risk and reward
- Net Premium / Debit
- -$37,706.00
- Max Profit (per contract)
- $2,294.00
- Max Loss (per contract)
- -$1,706.00
- Breakeven(s)
- $377.06
- Risk / Reward Ratio
- 1.345
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.
MTSI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MTSI. 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% | -$1,706.00 |
| $84.22 | -77.9% | -$1,706.00 |
| $168.43 | -55.8% | -$1,706.00 |
| $252.64 | -33.7% | -$1,706.00 |
| $336.85 | -11.6% | -$1,706.00 |
| $421.06 | +10.6% | +$2,294.00 |
| $505.26 | +32.7% | +$2,294.00 |
| $589.47 | +54.8% | +$2,294.00 |
| $673.68 | +76.9% | +$2,294.00 |
| $757.89 | +99.0% | +$2,294.00 |
When traders use collar on MTSI
Collars on MTSI hedge an existing long MTSI 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.
MTSI thesis for this collar
The market-implied 1-standard-deviation range for MTSI extends from approximately $301.92 on the downside to $459.80 on the upside. A MTSI collar hedges an existing long MTSI 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 MTSI IV rank near 41.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MTSI should anchor more to the directional view and the expected-move geometry. As a Technology name, MTSI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MTSI-specific events.
MTSI 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. MTSI positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MTSI alongside the broader basket even when MTSI-specific fundamentals are unchanged. Always rebuild the position from current MTSI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MTSI?
- A collar on MTSI is the collar strategy applied to MTSI (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 MTSI stock trading near $380.86, the strikes shown on this page are snapped to the nearest listed MTSI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MTSI 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 MTSI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 72.30%), the computed maximum profit is $2,294.00 per contract and the computed maximum loss is -$1,706.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MTSI collar?
- The breakeven for the MTSI collar priced on this page is roughly $377.06 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 MTSI market-implied 1-standard-deviation expected move is approximately 20.73%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MTSI?
- Collars on MTSI hedge an existing long MTSI 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 MTSI implied volatility affect this collar?
- MTSI ATM IV is at 72.30% with IV rank near 41.77%, 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.