TTC Collar Strategy
TTC (The Toro Company), in the Industrials sector, (Manufacturing - Tools & Accessories industry), listed on NYSE.
The Toro Company specializes in the global development, manufacturing, distribution, and sale of a diverse array of equipment for both commercial and home use. Its Professional division supplies a comprehensive suite of turf and landscape maintenance machinery. This includes specialized tools for the upkeep of athletic fields and golf courses, equipment for landscape contractors involved in mowing, creation, and renovation, as well as other general maintenance tools. This segment also provides apparatus for rental, specialized tasks, and underground construction projects. Furthermore, it offers solutions for snow and ice control, such as snowplows, brushes, snow thrower attachments, and salt/sand spreaders, along with their associated parts and accessories compatible with light and medium-duty trucks, utility task vehicles, skid steers, and front-end loaders. The professional offerings extend to irrigation and lighting products, encompassing sprinkler heads, electric and hydraulic valves, control units, central computer-based irrigation systems, coupling mechanisms, and agricultural drip tape and hose.
TTC (The Toro Company) trades in the Industrials sector, specifically Manufacturing - Tools & Accessories, with a market capitalization of approximately $9.22B, a trailing P/E of 27.53, a beta of 0.71 versus the broader market, a 52-week range of 67.64-105.19, average daily share volume of 848K, a public-listing history dating back to 1980, approximately 11K full-time employees. These structural characteristics shape how TTC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places TTC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TTC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TTC?
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 TTC snapshot
As of June 29, 2026, spot at $97.11, ATM IV 30.10%, IV rank 2.35%, expected move 8.63%. The collar on TTC 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 81-day expiry.
Why this collar structure on TTC specifically: IV regime affects collar pricing on both sides; compressed TTC IV at 30.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.63% (roughly $8.38 on the underlying). The 81-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on TTC should anchor to the underlying notional of $97.11 per share and to the trader's directional view on TTC stock.
TTC collar setup
The TTC 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 TTC near $97.11, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TTC chain at a 81-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 TTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $97.11 | long |
| Sell 1 | Call | $100.00 | $4.40 |
| Buy 1 | Put | $90.00 | $2.85 |
TTC collar risk and reward
- Net Premium / Debit
- -$9,556.00
- Max Profit (per contract)
- $444.00
- Max Loss (per contract)
- -$556.00
- Breakeven(s)
- $95.56
- Risk / Reward Ratio
- 0.799
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.
TTC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TTC. 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% | -$556.00 |
| $21.48 | -77.9% | -$556.00 |
| $42.95 | -55.8% | -$556.00 |
| $64.42 | -33.7% | -$556.00 |
| $85.89 | -11.6% | -$556.00 |
| $107.36 | +10.6% | +$444.00 |
| $128.83 | +32.7% | +$444.00 |
| $150.30 | +54.8% | +$444.00 |
| $171.77 | +76.9% | +$444.00 |
| $193.24 | +99.0% | +$444.00 |
When traders use collar on TTC
Collars on TTC hedge an existing long TTC 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.
TTC thesis for this collar
The market-implied 1-standard-deviation range for TTC extends from approximately $88.73 on the downside to $105.49 on the upside. A TTC collar hedges an existing long TTC 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 TTC IV rank near 2.35% 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 TTC at 30.10%. As a Industrials name, TTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TTC-specific events.
TTC 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. TTC positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TTC alongside the broader basket even when TTC-specific fundamentals are unchanged. Always rebuild the position from current TTC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TTC?
- A collar on TTC is the collar strategy applied to TTC (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 TTC stock trading near $97.11, the strikes shown on this page are snapped to the nearest listed TTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TTC 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 TTC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 30.10%), the computed maximum profit is $444.00 per contract and the computed maximum loss is -$556.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TTC collar?
- The breakeven for the TTC collar priced on this page is roughly $95.56 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 TTC market-implied 1-standard-deviation expected move is approximately 8.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TTC?
- Collars on TTC hedge an existing long TTC 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 TTC implied volatility affect this collar?
- TTC ATM IV is at 30.10% with IV rank near 2.35%, 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.