TDY Collar Strategy
TDY (Teledyne Technologies Incorporated), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.
Teledyne Technologies Incorporated develops and supplies advanced technologies primarily for industrial sectors experiencing growth, serving customers across the United States, Canada, the United Kingdom, Belgium, the Netherlands, and other international markets. The company's Instrumentation division provides sophisticated monitoring and control equipment for use in marine environments, environmental management, various industrial processes, and other specialized applications. It also offers electronic tools for testing and measurement, alongside connectivity devices for power and communication within distributed instrumentation setups and sensor networks. Its Digital Imaging segment specializes in a broad range of imaging solutions. This includes visible spectrum sensors and digital cameras vital for industrial machine vision, automated quality control, as well as medical, research, and scientific purposes. Additionally, it offers infrared and X-ray imaging technologies for industrial, governmental, and healthcare applications.
TDY (Teledyne Technologies Incorporated) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $31.82B, a trailing P/E of 33.03, a beta of 0.92 versus the broader market, a 52-week range of 483.02-697.67, average daily share volume of 360K, a public-listing history dating back to 1999, approximately 16K full-time employees. These structural characteristics shape how TDY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.92 places TDY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on TDY?
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.
TDY snapshot
As of August 14, 2026, spot at $678.42, ATM IV 24.40%, IV rank 29.82%, expected move 7.00%. The collar on TDY below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on TDY specifically: IV regime affects collar pricing on both sides; compressed TDY IV at 24.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.00% (roughly $47.46 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDY should anchor to the underlying notional of $678.42 per share and to the trader's directional view on TDY stock.
TDY collar setup
The TDY collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TDY at $678.42 on that close, the first option leg uses a $710.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TDY chain at a 35-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 TDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $678.42 | long |
| Sell 1 | Call | $710.00 | $7.50 |
| Buy 1 | Put | $640.00 | $7.55 |
TDY collar risk and reward
- Net Premium / Debit
- -$67,847.00
- Max Profit (per contract)
- $3,153.00
- Max Loss (per contract)
- -$3,847.00
- Breakeven(s)
- $678.47
- Risk / Reward Ratio
- 0.820
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.
TDY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TDY. 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% | -$3,847.00 |
| $150.01 | -77.9% | -$3,847.00 |
| $300.01 | -55.8% | -$3,847.00 |
| $450.01 | -33.7% | -$3,847.00 |
| $600.02 | -11.6% | -$3,847.00 |
| $750.02 | +10.6% | +$3,153.00 |
| $900.02 | +32.7% | +$3,153.00 |
| $1,050.02 | +54.8% | +$3,153.00 |
| $1,200.02 | +76.9% | +$3,153.00 |
| $1,350.02 | +99.0% | +$3,153.00 |
When traders use collar on TDY
Collars on TDY hedge an existing long TDY 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.
TDY thesis for this collar
The market-implied 1-standard-deviation range for TDY extends from approximately $630.96 on the downside to $725.88 on the upside. A TDY collar hedges an existing long TDY 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 TDY IV rank near 29.82% 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 TDY at 24.40%. As a Technology name, TDY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TDY-specific events.
TDY 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. TDY positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TDY alongside the broader basket even when TDY-specific fundamentals are unchanged. Always rebuild the position from current TDY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TDY?
- A collar on TDY is the collar strategy applied to TDY (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 TDY stock at $678.42 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TDY chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TDY 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 TDY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.40%), the computed maximum profit is $3,153.00 per contract and the computed maximum loss is -$3,847.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TDY collar?
- The breakeven for the TDY collar priced on this page is roughly $678.47 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TDY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TDY?
- Collars on TDY hedge an existing long TDY 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 TDY implied volatility affect this collar?
- TDY ATM IV is at 24.40% with IV rank near 29.82%, 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.