TTD Collar Strategy
TTD (The Trade Desk, Inc.), in the Communication Services sector, (Advertising Agencies industry), listed on NASDAQ.
The Trade Desk, Inc. is a global technology company that provides a self-service, cloud-based platform. This platform enables advertising buyers to efficiently create, manage, and optimize data-driven digital ad campaigns across diverse formats and channels, including display, video, audio, native, and social media, reaching audiences on computers, mobile devices, and connected TVs. In addition to the platform, the company offers various data and value-added services. Their primary clients are advertising agencies and other service providers who represent advertisers. The Trade Desk was founded in 2009 and is headquartered in Ventura, California.
TTD (The Trade Desk, Inc.) trades in the Communication Services sector, specifically Advertising Agencies, with a market capitalization of approximately $8.64B, a trailing P/E of 20.16, a beta of 1.02 versus the broader market, a 52-week range of 16.98-91.45, average daily share volume of 20.3M, a public-listing history dating back to 2016, approximately 4K full-time employees. These structural characteristics shape how TTD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places TTD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on TTD?
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 TTD snapshot
As of June 30, 2026, spot at $18.06, ATM IV 63.04%, IV rank 37.10%, expected move 18.07%. The collar on TTD 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 31-day expiry.
Why this collar structure on TTD specifically: IV regime affects collar pricing on both sides; mid-range TTD IV at 63.04% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.07% (roughly $3.26 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TTD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TTD should anchor to the underlying notional of $18.06 per share and to the trader's directional view on TTD stock.
TTD collar setup
The TTD 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 TTD near $18.06, the first option leg uses a $19.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TTD chain at a 31-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 TTD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $18.06 | long |
| Sell 1 | Call | $19.00 | $0.93 |
| Buy 1 | Put | $17.00 | $0.82 |
TTD collar risk and reward
- Net Premium / Debit
- -$1,795.50
- Max Profit (per contract)
- $104.50
- Max Loss (per contract)
- -$95.50
- Breakeven(s)
- $17.96
- Risk / Reward Ratio
- 1.094
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.
TTD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TTD. 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 | -99.9% | -$95.50 |
| $4.00 | -77.8% | -$95.50 |
| $7.99 | -55.7% | -$95.50 |
| $11.99 | -33.6% | -$95.50 |
| $15.98 | -11.5% | -$95.50 |
| $19.97 | +10.6% | +$104.50 |
| $23.96 | +32.7% | +$104.50 |
| $27.95 | +54.8% | +$104.50 |
| $31.95 | +76.9% | +$104.50 |
| $35.94 | +99.0% | +$104.50 |
When traders use collar on TTD
Collars on TTD hedge an existing long TTD 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.
TTD thesis for this collar
The market-implied 1-standard-deviation range for TTD extends from approximately $14.80 on the downside to $21.32 on the upside. A TTD collar hedges an existing long TTD 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 TTD IV rank near 37.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TTD should anchor more to the directional view and the expected-move geometry. As a Communication Services name, TTD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TTD-specific events.
TTD 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. TTD positions also carry Communication Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TTD alongside the broader basket even when TTD-specific fundamentals are unchanged. Always rebuild the position from current TTD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TTD?
- A collar on TTD is the collar strategy applied to TTD (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 TTD stock trading near $18.06, the strikes shown on this page are snapped to the nearest listed TTD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TTD 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 TTD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 63.04%), the computed maximum profit is $104.50 per contract and the computed maximum loss is -$95.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TTD collar?
- The breakeven for the TTD collar priced on this page is roughly $17.96 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 TTD market-implied 1-standard-deviation expected move is approximately 18.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TTD?
- Collars on TTD hedge an existing long TTD 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 TTD implied volatility affect this collar?
- TTD ATM IV is at 63.04% with IV rank near 37.10%, 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.