TER Collar Strategy
TER (Teradyne, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Teradyne, Inc., established in 1960 and headquartered in North Reading, Massachusetts, is a global leader specializing in the creation, production, sale, and maintenance of automated testing solutions. The company's operations are categorized into four principal divisions: 1. Semiconductor Test: This segment delivers solutions for testing microchips at both the wafer and finished device package stages. These capabilities serve a wide array of sectors, including automotive, industrial, telecommunications, consumer electronics, mobile devices, cloud computing, and gaming. Notable offerings include the FLEX test platform, the J750 system for high-volume semiconductor testing, the Magnum platform specialized for memory components like flash and DRAM, and the ETS platform, which caters to the analog/mixed-signal markets for chip makers and outsourced assembly/test providers. Its clientele encompasses integrated device manufacturers (IDMs), fabless chip companies, foundries, and independent semiconductor assembly and test firms. 2.
TER (Teradyne, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $68.39B, a trailing P/E of 80.01, a beta of 1.79 versus the broader market, a 52-week range of 88.6-472.37, average daily share volume of 4.2M, a public-listing history dating back to 1970, approximately 7K full-time employees. These structural characteristics shape how TER stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.79 indicates TER has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 80.01 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. TER pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TER?
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 TER snapshot
As of June 30, 2026, spot at $482.00, ATM IV 97.99%, IV rank 100.00%, expected move 28.09%. The collar on TER 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 31-day expiry.
Why this collar structure on TER specifically: IV regime affects collar pricing on both sides; elevated TER IV at 97.99% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.09% (roughly $135.40 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TER expiries trade a higher absolute premium for lower per-day decay. Position sizing on TER should anchor to the underlying notional of $482.00 per share and to the trader's directional view on TER stock.
TER collar setup
The TER 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 TER near $482.00, the first option leg uses a $510.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TER chain at a 31-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 TER shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $482.00 | long |
| Sell 1 | Call | $510.00 | $44.50 |
| Buy 1 | Put | $460.00 | $43.30 |
TER collar risk and reward
- Net Premium / Debit
- -$48,080.00
- Max Profit (per contract)
- $2,920.00
- Max Loss (per contract)
- -$2,080.00
- Breakeven(s)
- $480.80
- Risk / Reward Ratio
- 1.404
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.
TER collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TER. 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% | -$2,080.00 |
| $106.58 | -77.9% | -$2,080.00 |
| $213.15 | -55.8% | -$2,080.00 |
| $319.73 | -33.7% | -$2,080.00 |
| $426.30 | -11.6% | -$2,080.00 |
| $532.87 | +10.6% | +$2,920.00 |
| $639.44 | +32.7% | +$2,920.00 |
| $746.01 | +54.8% | +$2,920.00 |
| $852.58 | +76.9% | +$2,920.00 |
| $959.16 | +99.0% | +$2,920.00 |
When traders use collar on TER
Collars on TER hedge an existing long TER 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.
TER thesis for this collar
The market-implied 1-standard-deviation range for TER extends from approximately $346.60 on the downside to $617.40 on the upside. A TER collar hedges an existing long TER 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 TER IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on TER at 97.99%. As a Technology name, TER options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TER-specific events.
TER 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. TER positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TER alongside the broader basket even when TER-specific fundamentals are unchanged. Always rebuild the position from current TER chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TER?
- A collar on TER is the collar strategy applied to TER (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 TER stock trading near $482.00, the strikes shown on this page are snapped to the nearest listed TER chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TER 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 TER collar priced from the end-of-day chain at a 30-day expiry (ATM IV 97.99%), the computed maximum profit is $2,920.00 per contract and the computed maximum loss is -$2,080.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TER collar?
- The breakeven for the TER collar priced on this page is roughly $480.80 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 TER market-implied 1-standard-deviation expected move is approximately 28.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TER?
- Collars on TER hedge an existing long TER 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 TER implied volatility affect this collar?
- TER ATM IV is at 97.99% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.