TRU Collar Strategy
TRU (TransUnion), in the Industrials sector, (Consulting Services industry), listed on NYSE.
TransUnion provides risk and information solutions. The company operates in three segments: U.S. Markets, International, and Consumer Interactive. The U.S. Markets segment provides consumer reports, actionable insights, and analytics to businesses. These businesses use its services to acquire new customers; assess consumer ability to pay for services; identify cross-selling opportunities; measure and manage debt portfolio risk; collect debt; verify consumer identities; and mitigate fraud risk.
TRU (TransUnion) trades in the Industrials sector, specifically Consulting Services, with a market capitalization of approximately $12.83B, a trailing P/E of 18.21, a beta of 1.57 versus the broader market, a 52-week range of 65.235-99.39, average daily share volume of 2.4M, a public-listing history dating back to 2015, approximately 13K full-time employees. These structural characteristics shape how TRU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates TRU has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TRU pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TRU?
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 TRU snapshot
As of May 15, 2026, spot at $66.38, ATM IV 44.30%, IV rank 43.11%, expected move 12.70%. The collar on TRU 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 TRU specifically: IV regime affects collar pricing on both sides; mid-range TRU IV at 44.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.70% (roughly $8.43 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 TRU expiries trade a higher absolute premium for lower per-day decay. Position sizing on TRU should anchor to the underlying notional of $66.38 per share and to the trader's directional view on TRU stock.
TRU collar setup
The TRU 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 TRU near $66.38, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TRU 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 TRU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $66.38 | long |
| Sell 1 | Call | $70.00 | $2.15 |
| Buy 1 | Put | $62.50 | $2.05 |
TRU collar risk and reward
- Net Premium / Debit
- -$6,628.00
- Max Profit (per contract)
- $372.00
- Max Loss (per contract)
- -$378.00
- Breakeven(s)
- $66.28
- Risk / Reward Ratio
- 0.984
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.
TRU collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TRU. 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% | -$378.00 |
| $14.69 | -77.9% | -$378.00 |
| $29.36 | -55.8% | -$378.00 |
| $44.04 | -33.7% | -$378.00 |
| $58.71 | -11.5% | -$378.00 |
| $73.39 | +10.6% | +$372.00 |
| $88.07 | +32.7% | +$372.00 |
| $102.74 | +54.8% | +$372.00 |
| $117.42 | +76.9% | +$372.00 |
| $132.09 | +99.0% | +$372.00 |
When traders use collar on TRU
Collars on TRU hedge an existing long TRU 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.
TRU thesis for this collar
The market-implied 1-standard-deviation range for TRU extends from approximately $57.95 on the downside to $74.81 on the upside. A TRU collar hedges an existing long TRU 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 TRU IV rank near 43.11% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TRU should anchor more to the directional view and the expected-move geometry. As a Industrials name, TRU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TRU-specific events.
TRU 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. TRU positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TRU alongside the broader basket even when TRU-specific fundamentals are unchanged. Always rebuild the position from current TRU chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TRU?
- A collar on TRU is the collar strategy applied to TRU (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 TRU stock trading near $66.38, the strikes shown on this page are snapped to the nearest listed TRU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TRU 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 TRU collar priced from the end-of-day chain at a 30-day expiry (ATM IV 44.30%), the computed maximum profit is $372.00 per contract and the computed maximum loss is -$378.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TRU collar?
- The breakeven for the TRU collar priced on this page is roughly $66.28 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 TRU market-implied 1-standard-deviation expected move is approximately 12.70%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TRU?
- Collars on TRU hedge an existing long TRU 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 TRU implied volatility affect this collar?
- TRU ATM IV is at 44.30% with IV rank near 43.11%, 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.