TFX Collar Strategy
TFX (Teleflex Incorporated), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NYSE.
Teleflex Incorporated is a global medical technology company dedicated to designing, developing, manufacturing, and distributing single-use medical devices. These products are crucial for diagnostic and therapeutic procedures, particularly within critical care and surgical environments worldwide. Its comprehensive product portfolio includes: Vascular Access Solutions: Featuring the "Arrow" brand, these include catheters, advanced catheter navigation and tip positioning systems, and intraosseous access systems. They are essential for administering intravenous therapies, monitoring blood pressure, and drawing blood samples, all achievable through a single access point. Interventional Cardiology & Radiology Products: This segment covers various coronary catheters, therapies for structural heart conditions, and devices for peripheral intervention and cardiac assist. Key users include interventional cardiologists, radiologists, and vascular surgeons.
TFX (Teleflex Incorporated) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $5.75B, a beta of 0.82 versus the broader market, a 52-week range of 100.18-139.67, average daily share volume of 761K, a public-listing history dating back to 1980, approximately 14K full-time employees. These structural characteristics shape how TFX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places TFX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TFX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TFX?
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 TFX snapshot
As of June 29, 2026, spot at $127.28, ATM IV 34.70%, IV rank 3.70%, expected move 9.95%. The collar on TFX 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 18-day expiry.
Why this collar structure on TFX specifically: IV regime affects collar pricing on both sides; compressed TFX IV at 34.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.95% (roughly $12.66 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TFX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TFX should anchor to the underlying notional of $127.28 per share and to the trader's directional view on TFX stock.
TFX collar setup
The TFX 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 TFX near $127.28, the first option leg uses a $135.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TFX chain at a 18-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 TFX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $127.28 | long |
| Sell 1 | Call | $135.00 | $1.93 |
| Buy 1 | Put | $120.00 | $1.48 |
TFX collar risk and reward
- Net Premium / Debit
- -$12,683.00
- Max Profit (per contract)
- $817.00
- Max Loss (per contract)
- -$683.00
- Breakeven(s)
- $126.83
- Risk / Reward Ratio
- 1.196
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.
TFX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TFX. 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% | -$683.00 |
| $28.15 | -77.9% | -$683.00 |
| $56.29 | -55.8% | -$683.00 |
| $84.43 | -33.7% | -$683.00 |
| $112.57 | -11.6% | -$683.00 |
| $140.72 | +10.6% | +$817.00 |
| $168.86 | +32.7% | +$817.00 |
| $197.00 | +54.8% | +$817.00 |
| $225.14 | +76.9% | +$817.00 |
| $253.28 | +99.0% | +$817.00 |
When traders use collar on TFX
Collars on TFX hedge an existing long TFX 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.
TFX thesis for this collar
The market-implied 1-standard-deviation range for TFX extends from approximately $114.62 on the downside to $139.94 on the upside. A TFX collar hedges an existing long TFX 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 TFX IV rank near 3.70% 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 TFX at 34.70%. As a Healthcare name, TFX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TFX-specific events.
TFX 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. TFX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TFX alongside the broader basket even when TFX-specific fundamentals are unchanged. Always rebuild the position from current TFX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TFX?
- A collar on TFX is the collar strategy applied to TFX (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 TFX stock trading near $127.28, the strikes shown on this page are snapped to the nearest listed TFX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TFX 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 TFX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 34.70%), the computed maximum profit is $817.00 per contract and the computed maximum loss is -$683.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TFX collar?
- The breakeven for the TFX collar priced on this page is roughly $126.83 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 TFX market-implied 1-standard-deviation expected move is approximately 9.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TFX?
- Collars on TFX hedge an existing long TFX 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 TFX implied volatility affect this collar?
- TFX ATM IV is at 34.70% with IV rank near 3.70%, 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.