TDY Collar Strategy
TDY (Teledyne Technologies Incorporated), in the Technology sector, (Hardware, Equipment & Parts industry), listed on NYSE.
Teledyne Technologies Incorporated provides enabling technologies for industrial growth markets in the United States, Canada, the United Kingdom, Belgium, the Netherlands, and internationally. The company's Instrumentation segment offers monitoring and control instruments for marine, environmental, industrial, and other applications, as well as electronic test and measurement equipment; and power and communications connectivity devices for distributed instrumentation systems and sensor networks. Its Digital Imaging segment provides visible spectrum sensors and digital cameras for industrial machine vision and automated quality control, as well as for medical, research, and scientific applications; and infrared and X-ray spectra for use in industrial, government, and medical applications, as well as micro electromechanical systems and semiconductors, including analog-to-digital and digital-to-analog converters. This segment also offers thermal imaging systems, visible-light imaging systems, locater systems, measurement and diagnostic systems, and threat-detection solutions. The company's Aerospace and Defense Electronics segment provides electronic components and subsystems, as well as communications products, such as defense electronics, environment interconnects, data acquisition and communications equipment for aircraft, components and subsystems for wireless and satellite communications, and general aviation batteries. Its Engineered Systems segment offers systems engineering and integration, technology development, and manufacturing solutions for defense, space, environmental, and energy applications; and designs and manufactures electrochemical energy systems and electronics for military applications.
TDY (Teledyne Technologies Incorporated) trades in the Technology sector, specifically Hardware, Equipment & Parts, with a market capitalization of approximately $29.46B, a trailing P/E of 31.90, a beta of 0.97 versus the broader market, a 52-week range of 483.02-693.38, average daily share volume of 319K, a public-listing history dating back to 1999, approximately 15K 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 0.97 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.
Current TDY snapshot
As of May 15, 2026, spot at $616.85, ATM IV 27.10%, IV rank 49.09%, expected move 7.77%. The collar on TDY 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 TDY specifically: IV regime affects collar pricing on both sides; mid-range TDY IV at 27.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.77% (roughly $47.93 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 TDY expiries trade a higher absolute premium for lower per-day decay. Position sizing on TDY should anchor to the underlying notional of $616.85 per share and to the trader's directional view on TDY stock.
TDY collar setup
The TDY 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 TDY near $616.85, the first option leg uses a $650.00 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 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 TDY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $616.85 | long |
| Sell 1 | Call | $650.00 | $9.65 |
| Buy 1 | Put | $590.00 | $9.70 |
TDY collar risk and reward
- Net Premium / Debit
- -$61,690.00
- Max Profit (per contract)
- $3,310.00
- Max Loss (per contract)
- -$2,690.00
- Breakeven(s)
- $616.90
- Risk / Reward Ratio
- 1.230
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% | -$2,690.00 |
| $136.40 | -77.9% | -$2,690.00 |
| $272.79 | -55.8% | -$2,690.00 |
| $409.17 | -33.7% | -$2,690.00 |
| $545.56 | -11.6% | -$2,690.00 |
| $681.95 | +10.6% | +$3,310.00 |
| $818.34 | +32.7% | +$3,310.00 |
| $954.72 | +54.8% | +$3,310.00 |
| $1,091.11 | +76.9% | +$3,310.00 |
| $1,227.50 | +99.0% | +$3,310.00 |
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 $568.92 on the downside to $664.78 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 49.09% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TDY should anchor more to the directional view and the expected-move geometry. 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 trading near $616.85, the strikes shown on this page are snapped to the nearest listed TDY chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 27.10%), the computed maximum profit is $3,310.00 per contract and the computed maximum loss is -$2,690.00 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 $616.90 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 TDY market-implied 1-standard-deviation expected move is approximately 7.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on 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 27.10% with IV rank near 49.09%, 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.