How are TDOC 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 TDOC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.09%), the computed maximum profit is $39.50 per contract and the computed maximum loss is -$10.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TDOC collar?

The breakeven for the TDOC collar priced on this page is roughly $6.11 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 TDOC market-implied 1-standard-deviation expected move is approximately 16.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TDOC implied volatility affect this collar?

TDOC ATM IV is at 58.09% with IV rank near 24.79%, 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.

TDOC Collar Strategy

TDOC (Teladoc Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.

Teladoc Health, Inc. provides virtual healthcare services in the United States and internationally. The company offers a portfolio of services and solutions covering non-urgent, episodic, chronic, and complicated medical conditions, including diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and mental health conditions. It offers a range of programs and services, including primary and specialty care telehealth solutions, chronic condition management, expert medical services, mental health solutions, and platform and program services. The company serves employers, health plans, hospitals and health systems, and insurance and financial services companies, as well as individual members. It offers its products and services under the Teladoc, Livongo, and BetterHelp brands. The company was formerly known as Teladoc, Inc. and changed its name to Teladoc Health, Inc. in August 2018.

TDOC (Teladoc Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $1.23B, a beta of 2.08 versus the broader market, a 52-week range of 4.4-9.77, average daily share volume of 5.5M, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how TDOC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.08 indicates TDOC 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 TDOC?

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 TDOC snapshot

As of May 15, 2026, spot at $6.38, ATM IV 58.09%, IV rank 24.79%, expected move 16.65%. The collar on TDOC 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 28-day expiry.

Why this collar structure on TDOC specifically: IV regime affects collar pricing on both sides; compressed TDOC IV at 58.09% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.65% (roughly $1.06 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TDOC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDOC should anchor to the underlying notional of $6.38 per share and to the trader's directional view on TDOC stock.

TDOC collar setup

The TDOC 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 TDOC near $6.38, the first option leg uses a $6.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDOC chain at a 28-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 TDOC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$6.38	long
Sell 1	Call	$6.50	$0.53
Buy 1	Put	$6.00	$0.26

TDOC collar risk and reward

Net Premium / Debit: -$610.50
Max Profit (per contract): $39.50
Max Loss (per contract): -$10.50
Breakeven(s): $6.11
Risk / Reward Ratio: 3.762

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.

TDOC collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TDOC. 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	-99.8%	-$10.50
$1.42	-77.8%	-$10.50
$2.83	-55.7%	-$10.50
$4.24	-33.6%	-$10.50
$5.65	-11.5%	-$10.50
$7.06	+10.6%	+$39.50
$8.47	+32.7%	+$39.50
$9.88	+54.8%	+$39.50
$11.29	+76.9%	+$39.50
$12.70	+99.0%	+$39.50

When traders use collar on TDOC

Collars on TDOC hedge an existing long TDOC 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.

TDOC thesis for this collar

The market-implied 1-standard-deviation range for TDOC extends from approximately $5.32 on the downside to $7.44 on the upside. A TDOC collar hedges an existing long TDOC 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 TDOC IV rank near 24.79% 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 TDOC at 58.09%. As a Healthcare name, TDOC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDOC-specific events.

TDOC 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. TDOC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDOC alongside the broader basket even when TDOC-specific fundamentals are unchanged. Always rebuild the position from current TDOC chain quotes before placing a trade.

Frequently asked questions

What is a collar on TDOC?: A collar on TDOC is the collar strategy applied to TDOC (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 TDOC stock trading near $6.38, the strikes shown on this page are snapped to the nearest listed TDOC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TDOC 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 TDOC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 58.09%), the computed maximum profit is $39.50 per contract and the computed maximum loss is -$10.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TDOC collar?: The breakeven for the TDOC collar priced on this page is roughly $6.11 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 TDOC market-implied 1-standard-deviation expected move is approximately 16.65%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TDOC?: Collars on TDOC hedge an existing long TDOC 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 TDOC implied volatility affect this collar?: TDOC ATM IV is at 58.09% with IV rank near 24.79%, 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.