TMP Collar Strategy
TMP (Tompkins Financial Corporation), in the Financial Services sector, (Banks - Regional industry), listed on AMEX.
Tompkins Financial Corporation functions as a financial holding entity, offering a comprehensive array of services that include commercial and retail banking, leasing, trust and investment management, financial planning, wealth management, and insurance solutions. Its operations are strategically divided into three main segments: Banking, Insurance, and Wealth Management. The corporation provides a diverse selection of deposit products, such as checking, savings, and time accounts, alongside IRA options, and specialized brokered, reciprocal, and municipal money market deposits. It also extends a wide range of lending solutions. For businesses, these include financing for real estate, construction, and equipment, accounts receivable funding, and commercial leasing. For individuals and businesses alike, it offers residential mortgages, personal loans, home equity loans, commercial and industrial loans, commercial real estate loans, and agricultural loans.
TMP (Tompkins Financial Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.35B, a trailing P/E of 8.01, a beta of 0.74 versus the broader market, a 52-week range of 61.21-94.33, average daily share volume of 71K, a public-listing history dating back to 1986, approximately 941 full-time employees. These structural characteristics shape how TMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places TMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 8.01 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TMP?
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 TMP snapshot
As of June 29, 2026, spot at $93.66, ATM IV 64.50%, IV rank 10.17%, expected move 18.49%. The collar on TMP 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 TMP specifically: IV regime affects collar pricing on both sides; compressed TMP IV at 64.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.49% (roughly $17.32 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 TMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMP should anchor to the underlying notional of $93.66 per share and to the trader's directional view on TMP stock.
TMP collar setup
The TMP 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 TMP near $93.66, the first option leg uses a $98.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMP 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 TMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $93.66 | long |
| Sell 1 | Call | $98.34 | N/A |
| Buy 1 | Put | $88.98 | N/A |
TMP collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
TMP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TMP. 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.
When traders use collar on TMP
Collars on TMP hedge an existing long TMP 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.
TMP thesis for this collar
The market-implied 1-standard-deviation range for TMP extends from approximately $76.34 on the downside to $110.98 on the upside. A TMP collar hedges an existing long TMP 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 TMP IV rank near 10.17% 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 TMP at 64.50%. As a Financial Services name, TMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMP-specific events.
TMP 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. TMP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMP alongside the broader basket even when TMP-specific fundamentals are unchanged. Always rebuild the position from current TMP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TMP?
- A collar on TMP is the collar strategy applied to TMP (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 TMP stock trading near $93.66, the strikes shown on this page are snapped to the nearest listed TMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMP 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 TMP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 64.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TMP collar?
- The breakeven for the TMP collar priced on this page is no defined breakeven on the modeled curve 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 TMP market-implied 1-standard-deviation expected move is approximately 18.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TMP?
- Collars on TMP hedge an existing long TMP 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 TMP implied volatility affect this collar?
- TMP ATM IV is at 64.50% with IV rank near 10.17%, 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.