TCBI Collar Strategy
TCBI (Texas Capital Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Texas Capital Bancshares, Inc. operates as the bank holding company for Texas Capital Bank, is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs, and individual customers. The company offers commercial banking, consumer banking, investment banking, and wealth management services. It offers business deposit products and services, including commercial checking accounts, lockbox accounts, and cash concentration accounts, as well as information, wire transfer initiation, ACH initiation, account transfer, and service integration services; and consumer deposit products, such as checking accounts, savings accounts, money market accounts, and certificates of deposit. The company also provides commercial loans for general corporate purposes comprising financing working capital, internal growth, acquisitions, and business insurance premiums, as well as consumer loans; loans to exploration and production companies; mortgage finance loans; commercial real estate and residential homebuilder finance loans; first and second lien loans for the purpose of purchasing or constructing 1-4 family residential dwellings, as well as home equity revolving lines of credit and loans to purchase lots for future construction of 1-4 family residential dwellings; and real estate loans originated through a small business administration program, as well as equipment finance and leasing services, and letters of credit. In addition, it offers online and mobile banking, and debit and credit card services; escrow services; personal wealth management and trust services; and depositors American Airlines AAdvantage miles. It operates in Austin, Fort Worth, Dallas, Houston, and San Antonio metropolitan areas of Texas.
TCBI (Texas Capital Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.19B, a trailing P/E of 12.11, a beta of 0.69 versus the broader market, a 52-week range of 70-108.92, average daily share volume of 473K, a public-listing history dating back to 2003, approximately 2K full-time employees. These structural characteristics shape how TCBI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.69 indicates TCBI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TCBI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TCBI?
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 TCBI snapshot
As of May 15, 2026, spot at $95.63, ATM IV 30.60%, IV rank 5.49%, expected move 8.77%. The collar on TCBI 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 TCBI specifically: IV regime affects collar pricing on both sides; compressed TCBI IV at 30.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.77% (roughly $8.39 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 TCBI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TCBI should anchor to the underlying notional of $95.63 per share and to the trader's directional view on TCBI stock.
TCBI collar setup
The TCBI 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 TCBI near $95.63, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TCBI 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 TCBI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $95.63 | long |
| Sell 1 | Call | $100.00 | $2.18 |
| Buy 1 | Put | $90.00 | $1.50 |
TCBI collar risk and reward
- Net Premium / Debit
- -$9,495.50
- Max Profit (per contract)
- $504.50
- Max Loss (per contract)
- -$495.50
- Breakeven(s)
- $94.96
- Risk / Reward Ratio
- 1.018
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.
TCBI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TCBI. 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% | -$495.50 |
| $21.15 | -77.9% | -$495.50 |
| $42.30 | -55.8% | -$495.50 |
| $63.44 | -33.7% | -$495.50 |
| $84.58 | -11.6% | -$495.50 |
| $105.73 | +10.6% | +$504.50 |
| $126.87 | +32.7% | +$504.50 |
| $148.01 | +54.8% | +$504.50 |
| $169.16 | +76.9% | +$504.50 |
| $190.30 | +99.0% | +$504.50 |
When traders use collar on TCBI
Collars on TCBI hedge an existing long TCBI 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.
TCBI thesis for this collar
The market-implied 1-standard-deviation range for TCBI extends from approximately $87.24 on the downside to $104.02 on the upside. A TCBI collar hedges an existing long TCBI 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 TCBI IV rank near 5.49% 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 TCBI at 30.60%. As a Financial Services name, TCBI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TCBI-specific events.
TCBI 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. TCBI positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TCBI alongside the broader basket even when TCBI-specific fundamentals are unchanged. Always rebuild the position from current TCBI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TCBI?
- A collar on TCBI is the collar strategy applied to TCBI (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 TCBI stock trading near $95.63, the strikes shown on this page are snapped to the nearest listed TCBI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TCBI 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 TCBI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.60%), the computed maximum profit is $504.50 per contract and the computed maximum loss is -$495.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TCBI collar?
- The breakeven for the TCBI collar priced on this page is roughly $94.96 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 TCBI market-implied 1-standard-deviation expected move is approximately 8.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TCBI?
- Collars on TCBI hedge an existing long TCBI 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 TCBI implied volatility affect this collar?
- TCBI ATM IV is at 30.60% with IV rank near 5.49%, 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.