TJX Collar Strategy
TJX (The TJX Companies, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.
The TJX Companies, Inc., alongside its various associated businesses, functions as a major discount retailer focusing on clothing and household decor. Its operations are organized into four primary divisions: Marmaxx, HomeGoods, TJX Canada, and TJX International. The enterprise markets an extensive selection of goods, including clothing for all family members (such as shoes and complementary items); a broad array of home furnishings and accessories (ranging from essential household goods, furniture, floor coverings, and lighting fixtures to gift items, soft textiles, decorative pieces, dining wares, and kitchen utensils), alongside growing departments for pet supplies, children's products, and gourmet foodstuffs. Jewelry, additional accessories, and various general merchandise are also available. By the close of February 23, 2022, TJX maintained a considerable retail network across several continents. In the United States, this footprint included 1,284 T.J.
TJX (The TJX Companies, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $168.01B, a trailing P/E of 29.42, a beta of 0.62 versus the broader market, a 52-week range of 132.01-170, average daily share volume of 5.5M, a public-listing history dating back to 1987, approximately 377K full-time employees. These structural characteristics shape how TJX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.62 indicates TJX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TJX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TJX?
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.
TJX snapshot
As of August 14, 2026, spot at $152.12, ATM IV 26.10%, IV rank 74.40%, expected move 7.48%. The collar on TJX 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 28-day expiry.
Why this collar structure on TJX specifically: IV regime affects collar pricing on both sides; elevated TJX IV at 26.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.48% (roughly $11.38 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 TJX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TJX should anchor to the underlying notional of $152.12 per share and to the trader's directional view on TJX stock.
TJX collar setup
The TJX 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 TJX at $152.12 on that close, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TJX 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 TJX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $152.12 | long |
| Sell 1 | Call | $160.00 | $1.78 |
| Buy 1 | Put | $145.00 | $1.58 |
TJX collar risk and reward
- Net Premium / Debit
- -$15,192.00
- Max Profit (per contract)
- $808.00
- Max Loss (per contract)
- -$692.00
- Breakeven(s)
- $151.92
- Risk / Reward Ratio
- 1.168
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.
TJX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TJX. 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% | -$692.00 |
| $33.64 | -77.9% | -$692.00 |
| $67.28 | -55.8% | -$692.00 |
| $100.91 | -33.7% | -$692.00 |
| $134.54 | -11.6% | -$692.00 |
| $168.18 | +10.6% | +$808.00 |
| $201.81 | +32.7% | +$808.00 |
| $235.44 | +54.8% | +$808.00 |
| $269.08 | +76.9% | +$808.00 |
| $302.71 | +99.0% | +$808.00 |
When traders use collar on TJX
Collars on TJX hedge an existing long TJX 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.
TJX thesis for this collar
The market-implied 1-standard-deviation range for TJX extends from approximately $140.74 on the downside to $163.50 on the upside. A TJX collar hedges an existing long TJX 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 TJX IV rank near 74.40% 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 TJX at 26.10%. As a Consumer Cyclical name, TJX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TJX-specific events.
TJX 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. TJX positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TJX alongside the broader basket even when TJX-specific fundamentals are unchanged. Always rebuild the position from current TJX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TJX?
- A collar on TJX is the collar strategy applied to TJX (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 TJX stock at $152.12 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TJX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TJX 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 TJX collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 26.10%), the computed maximum profit is $808.00 per contract and the computed maximum loss is -$692.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TJX collar?
- The breakeven for the TJX collar priced on this page is roughly $151.92 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 TJX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TJX?
- Collars on TJX hedge an existing long TJX 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 TJX implied volatility affect this collar?
- TJX ATM IV is at 26.10% with IV rank near 74.40%, 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.