How are TNDM 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 TNDM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.60%), the computed maximum profit is $100.00 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a TNDM collar?

The breakeven for the TNDM collar priced on this page is roughly $15.00 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 TNDM market-implied 1-standard-deviation expected move is approximately 22.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TNDM implied volatility affect this collar?

TNDM ATM IV is at 78.60% with IV rank near 23.95%, 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.

TNDM Collar Strategy

TNDM (Tandem Diabetes Care, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.

Tandem Diabetes Care, Inc., a medical technology firm, specializes in creating, developing, and marketing solutions for individuals globally who manage insulin-dependent diabetes. At the core of its offerings is the t:slim X2 insulin delivery system, an advanced pump platform that integrates the t:slim X2 pump, a disposable 300-unit insulin cartridge, and an infusion set. Tandem further enhances this platform with innovative features like Basal-IQ and Control-IQ technology, as well as G5 Integration capabilities. The company also provides the Tandem Device Updater, enabling users to easily update their pump's software. To facilitate therapy management, Tandem offers t:connect, a web-based application that visually presents diabetes data from the pump, continuous glucose monitoring (CGM) devices, and supported blood glucose meters to patients, their caregivers, and healthcare professionals. Additionally, the Sugarmate mobile application caters specifically to insulin users with diabetes.

TNDM (Tandem Diabetes Care, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.11B, a beta of 1.57 versus the broader market, a 52-week range of 9.98-29.65, average daily share volume of 2.4M, a public-listing history dating back to 2013, approximately 3K full-time employees. These structural characteristics shape how TNDM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.57 indicates TNDM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on TNDM?

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 TNDM snapshot

As of June 30, 2026, spot at $15.15, ATM IV 78.60%, IV rank 23.95%, expected move 22.53%. The collar on TNDM 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 17-day expiry.

Why this collar structure on TNDM specifically: IV regime affects collar pricing on both sides; compressed TNDM IV at 78.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.53% (roughly $3.41 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TNDM expiries trade a higher absolute premium for lower per-day decay. Position sizing on TNDM should anchor to the underlying notional of $15.15 per share and to the trader's directional view on TNDM stock.

TNDM collar setup

The TNDM 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 TNDM near $15.15, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TNDM chain at a 17-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 TNDM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$15.15	long
Sell 1	Call	$16.00	$0.70
Buy 1	Put	$14.00	$0.55

TNDM collar risk and reward

Net Premium / Debit: -$1,500.00
Max Profit (per contract): $100.00
Max Loss (per contract): -$100.00
Breakeven(s): $15.00
Risk / Reward Ratio: 1.000

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.

TNDM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on TNDM. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$100.00
$3.36	-77.8%	-$100.00
$6.71	-55.7%	-$100.00
$10.06	-33.6%	-$100.00
$13.40	-11.5%	-$100.00
$16.75	+10.6%	+$100.00
$20.10	+32.7%	+$100.00
$23.45	+54.8%	+$100.00
$26.80	+76.9%	+$100.00
$30.15	+99.0%	+$100.00

When traders use collar on TNDM

Collars on TNDM hedge an existing long TNDM 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.

TNDM thesis for this collar

The market-implied 1-standard-deviation range for TNDM extends from approximately $11.74 on the downside to $18.56 on the upside. A TNDM collar hedges an existing long TNDM 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 TNDM IV rank near 23.95% 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 TNDM at 78.60%. As a Healthcare name, TNDM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TNDM-specific events.

TNDM 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. TNDM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TNDM alongside the broader basket even when TNDM-specific fundamentals are unchanged. Always rebuild the position from current TNDM chain quotes before placing a trade.

Frequently asked questions

What is a collar on TNDM?: A collar on TNDM is the collar strategy applied to TNDM (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 TNDM stock trading near $15.15, the strikes shown on this page are snapped to the nearest listed TNDM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are TNDM 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 TNDM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.60%), the computed maximum profit is $100.00 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a TNDM collar?: The breakeven for the TNDM collar priced on this page is roughly $15.00 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 TNDM market-implied 1-standard-deviation expected move is approximately 22.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on TNDM?: Collars on TNDM hedge an existing long TNDM 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 TNDM implied volatility affect this collar?: TNDM ATM IV is at 78.60% with IV rank near 23.95%, 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.