TR Collar Strategy
TR (Tootsie Roll Industries, Inc.), in the Consumer Defensive sector, (Food Confectioners industry), listed on NYSE.
Tootsie Roll Industries, Inc. is a long-standing confectionery business that produces and markets a wide variety of sweet treats. Its operations extend across the United States, Canada, Mexico, and numerous other countries worldwide. The company is renowned for an extensive lineup of popular brands, such as Tootsie Roll, Tootsie Pops, Child's Play, Caramel Apple Pops, Charms, Blow-Pop, Charms Mini Pops, Cella's, Dots, Junior Mints, Charleston Chew, Sugar Daddy, Sugar Babies, Andes, Fluffy Stuff, Dubble Bubble, Razzles, Cry Baby, NIK-L-NIP, and Tutsi Pop. To distribute its products, Tootsie Roll utilizes a broad network of sales channels. These include direct sales to wholesale distributors of candy, food, and groceries, as well as major retail outlets like supermarkets, variety stores, dollar stores, chain grocers, drugstores, and discount chains. The company also supplies cooperative grocery associations, mass merchandisers, warehouse and membership club stores, vending machine operators, online merchants, the United States military, and charitable fundraising groups, often facilitated by food and grocery brokers.
TR (Tootsie Roll Industries, Inc.) trades in the Consumer Defensive sector, specifically Food Confectioners, with a market capitalization of approximately $3.07B, a trailing P/E of 32.17, a beta of 0.41 versus the broader market, a 52-week range of 33.43689-45.06, average daily share volume of 196K, a public-listing history dating back to 1980, approximately 2K full-time employees. These structural characteristics shape how TR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.41 indicates TR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TR?
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.
TR snapshot
As of August 14, 2026, spot at $40.70, ATM IV 36.00%, IV rank 4.80%, expected move 10.32%. The collar on TR below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on TR specifically: IV regime affects collar pricing on both sides; compressed TR IV at 36.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.32% (roughly $4.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TR expiries trade a higher absolute premium for lower per-day decay. Position sizing on TR should anchor to the underlying notional of $40.70 per share and to the trader's directional view on TR stock.
TR collar setup
The TR 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 TR at $40.70 on that close, the first option leg uses a $42.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TR chain at a 35-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 TR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $40.70 | long |
| Sell 1 | Call | $42.74 | N/A |
| Buy 1 | Put | $38.67 | N/A |
TR 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.
TR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TR. 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 TR
Collars on TR hedge an existing long TR 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.
TR thesis for this collar
The market-implied 1-standard-deviation range for TR extends from approximately $36.50 on the downside to $44.90 on the upside. A TR collar hedges an existing long TR 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 TR IV rank near 4.80% 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 TR at 36.00%. As a Consumer Defensive name, TR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TR-specific events.
TR 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. TR positions also carry Consumer Defensive sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TR alongside the broader basket even when TR-specific fundamentals are unchanged. Always rebuild the position from current TR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TR?
- A collar on TR is the collar strategy applied to TR (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 TR stock at $40.70 on the most recent close, the strikes shown on this page are snapped to the nearest listed TR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TR 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 TR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.00%), 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 TR collar?
- The breakeven for the TR collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 TR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.32%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TR?
- Collars on TR hedge an existing long TR 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 TR implied volatility affect this collar?
- TR ATM IV is at 36.00% with IV rank near 4.80%, 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.