TSBK Collar Strategy
TSBK (Timberland Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various community banking services in Washington. It offers various deposit products, including money market deposit, checking, and regular savings accounts, as well as certificates of deposit. The company also provides one-to four-family residential, multi-family, commercial real estate, construction, custom and owner/builder construction, speculative one- to four-family construction, commercial construction, multi-family construction, land development construction, and land development loans. In addition, it offers consumer loans comprising home equity lines of credit and second mortgage loans; and automobile loans, boat loans, motorcycle loans, recreational vehicle loans, savings account loans, and unsecured loans, as well as commercial business loans. As of September 30, 2021, the company operated 24 branches located in Grays Harbor, Pierce, Thurston, Kitsap, King, and Lewis counties in Washington; and operated 25 proprietary automated teller machines. Timberland Bancorp, Inc. was founded in 1915 and is headquartered in Hoquiam, Washington.
TSBK (Timberland Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $310.1M, a trailing P/E of 10.10, a beta of 0.31 versus the broader market, a 52-week range of 29.3-43.55, average daily share volume of 33K, a public-listing history dating back to 1998, approximately 274 full-time employees. These structural characteristics shape how TSBK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.31 indicates TSBK 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 10.10 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. TSBK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TSBK?
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 TSBK snapshot
As of May 15, 2026, spot at $39.47, ATM IV 50.20%, IV rank 19.59%, expected move 14.39%. The collar on TSBK 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 TSBK specifically: IV regime affects collar pricing on both sides; compressed TSBK IV at 50.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.39% (roughly $5.68 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 TSBK expiries trade a higher absolute premium for lower per-day decay. Position sizing on TSBK should anchor to the underlying notional of $39.47 per share and to the trader's directional view on TSBK stock.
TSBK collar setup
The TSBK 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 TSBK near $39.47, the first option leg uses a $41.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TSBK 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 TSBK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $39.47 | long |
| Sell 1 | Call | $41.44 | N/A |
| Buy 1 | Put | $37.50 | N/A |
TSBK 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.
TSBK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TSBK. 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 TSBK
Collars on TSBK hedge an existing long TSBK 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.
TSBK thesis for this collar
The market-implied 1-standard-deviation range for TSBK extends from approximately $33.79 on the downside to $45.15 on the upside. A TSBK collar hedges an existing long TSBK 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 TSBK IV rank near 19.59% 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 TSBK at 50.20%. As a Financial Services name, TSBK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TSBK-specific events.
TSBK 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. TSBK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TSBK alongside the broader basket even when TSBK-specific fundamentals are unchanged. Always rebuild the position from current TSBK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TSBK?
- A collar on TSBK is the collar strategy applied to TSBK (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 TSBK stock trading near $39.47, the strikes shown on this page are snapped to the nearest listed TSBK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TSBK 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 TSBK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.20%), 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 TSBK collar?
- The breakeven for the TSBK 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 TSBK market-implied 1-standard-deviation expected move is approximately 14.39%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TSBK?
- Collars on TSBK hedge an existing long TSBK 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 TSBK implied volatility affect this collar?
- TSBK ATM IV is at 50.20% with IV rank near 19.59%, 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.