TRMD Collar Strategy
TRMD (TORM plc), in the Energy sector, (Oil & Gas Midstream industry), listed on NASDAQ.
TORM plc, a product tanker company, engages in the transportation of refined oil products and crude oil worldwide. The company transports gasoline, jet fuel, and naphtha. As of March 23, 2022, it operated a fleet of approximately 85 vessels. The company was founded in 1889 and is headquartered in London, the United Kingdom.
TRMD (TORM plc) trades in the Energy sector, specifically Oil & Gas Midstream, with a market capitalization of approximately $3.33B, a trailing P/E of 11.56, a beta of 0.04 versus the broader market, a 52-week range of 15.79-35.33, average daily share volume of 898K, a public-listing history dating back to 2018, approximately 479 full-time employees. These structural characteristics shape how TRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.04 indicates TRMD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 11.56 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TRMD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TRMD?
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 TRMD snapshot
As of May 15, 2026, spot at $31.93, ATM IV 50.30%, IV rank 33.69%, expected move 14.42%. The collar on TRMD 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 34-day expiry.
Why this collar structure on TRMD specifically: IV regime affects collar pricing on both sides; mid-range TRMD IV at 50.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.42% (roughly $4.60 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRMD should anchor to the underlying notional of $31.93 per share and to the trader's directional view on TRMD stock.
TRMD collar setup
The TRMD 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 TRMD near $31.93, the first option leg uses a $33.53 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRMD chain at a 34-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 TRMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $31.93 | long |
| Sell 1 | Call | $33.53 | N/A |
| Buy 1 | Put | $30.33 | N/A |
TRMD 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.
TRMD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TRMD. 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 TRMD
Collars on TRMD hedge an existing long TRMD 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.
TRMD thesis for this collar
The market-implied 1-standard-deviation range for TRMD extends from approximately $27.33 on the downside to $36.53 on the upside. A TRMD collar hedges an existing long TRMD 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 TRMD IV rank near 33.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TRMD should anchor more to the directional view and the expected-move geometry. As a Energy name, TRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRMD-specific events.
TRMD 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. TRMD positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TRMD alongside the broader basket even when TRMD-specific fundamentals are unchanged. Always rebuild the position from current TRMD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TRMD?
- A collar on TRMD is the collar strategy applied to TRMD (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 TRMD stock trading near $31.93, the strikes shown on this page are snapped to the nearest listed TRMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TRMD 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 TRMD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.30%), 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 TRMD collar?
- The breakeven for the TRMD 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 TRMD market-implied 1-standard-deviation expected move is approximately 14.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TRMD?
- Collars on TRMD hedge an existing long TRMD 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 TRMD implied volatility affect this collar?
- TRMD ATM IV is at 50.30% with IV rank near 33.69%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.