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 34.10%), the computed maximum profit is $732.00 per contract and the computed maximum loss is -$768.00 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 $102.68 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 9.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TCBI implied volatility affect this collar?

TCBI ATM IV is at 34.10% with IV rank near 6.38%, 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.

TCBI Collar Strategy

TCBI (Texas Capital Bancshares, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.

Texas Capital Bancshares, Inc. serves as the holding company for Texas Capital Bank, operating as a comprehensive financial services firm that delivers tailored solutions to businesses, entrepreneurs, and individual clients. Its offerings encompass commercial banking, consumer banking, investment banking, and wealth management. The company provides businesses with various deposit accounts, such as commercial checking, lockbox, and cash concentration services, alongside digital banking tools for information access, wire transfers, ACH initiation, and account integration. For individual clients, it offers checking, savings, money market accounts, and certificates of deposit. Regarding lending, the firm extends a broad spectrum of options, including commercial loans to fund working capital, growth initiatives, acquisitions, and business insurance premiums, in addition to consumer loans. Specialized financing is available for exploration and production companies, mortgage finance, commercial real estate, and residential homebuilder projects.

TCBI (Texas Capital Bancshares, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $4.52B, a trailing P/E of 13.04, a beta of 0.68 versus the broader market, a 52-week range of 75.41-108.92, average daily share volume of 475K, 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 0.68 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 June 29, 2026, spot at $102.53, ATM IV 34.10%, IV rank 6.38%, expected move 9.78%. 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 53-day expiry.

Why this collar structure on TCBI specifically: IV regime affects collar pricing on both sides; compressed TCBI IV at 34.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.78% (roughly $10.02 on the underlying). The 53-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 $102.53 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 $102.53, the first option leg uses a $110.00 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 53-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	$102.53	long
Sell 1	Call	$110.00	$2.43
Buy 1	Put	$95.00	$2.58

TCBI collar risk and reward

Net Premium / Debit: -$10,268.00
Max Profit (per contract): $732.00
Max Loss (per contract): -$768.00
Breakeven(s): $102.68
Risk / Reward Ratio: 0.953

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$768.00
$22.68	-77.9%	-$768.00
$45.35	-55.8%	-$768.00
$68.02	-33.7%	-$768.00
$90.69	-11.6%	-$768.00
$113.35	+10.6%	+$732.00
$136.02	+32.7%	+$732.00
$158.69	+54.8%	+$732.00
$181.36	+76.9%	+$732.00
$204.03	+99.0%	+$732.00

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 $92.51 on the downside to $112.55 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 6.38% 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 34.10%. 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 $102.53, 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 34.10%), the computed maximum profit is $732.00 per contract and the computed maximum loss is -$768.00 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 $102.68 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 9.78%; 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 34.10% with IV rank near 6.38%, 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.