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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.14%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$64.50 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 $14.15 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TTD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current TTD implied volatility affect this collar?

TTD ATM IV is at 51.14% with IV rank near 16.93%, 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.

TTD Collar Strategy

TTD (The Trade Desk, Inc.), in the Technology sector, (Software - Services 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 Technology sector, specifically Software - Services, with a market capitalization of approximately $6.34B, a trailing P/E of 15.53, a beta of 1.04 versus the broader market, a 52-week range of 12.83-56.39, average daily share volume of 20.7M, 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 1.04 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.

TTD snapshot

As of August 14, 2026, spot at $14.14, ATM IV 51.14%, IV rank 16.93%, expected move 14.66%. The collar on TTD below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.

Why this collar structure on TTD specifically: IV regime affects collar pricing on both sides; compressed TTD IV at 51.14% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.66% (roughly $2.07 on the underlying). The 28-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 $14.14 per share and to the trader's directional view on TTD stock.

TTD collar setup

The TTD collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With TTD at $14.14 on that close, the first option leg uses a $15.00 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 28-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	$14.14	long
Sell 1	Call	$15.00	$0.48
Buy 1	Put	$13.50	$0.48

TTD collar risk and reward

Net Premium / Debit: -$1,414.50
Max Profit (per contract): $85.50
Max Loss (per contract): -$64.50
Breakeven(s): $14.15
Risk / Reward Ratio: 1.326

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$64.50
$3.14	-77.8%	-$64.50
$6.26	-55.7%	-$64.50
$9.39	-33.6%	-$64.50
$12.51	-11.5%	-$64.50
$15.64	+10.6%	+$85.50
$18.76	+32.7%	+$85.50
$21.89	+54.8%	+$85.50
$25.01	+76.9%	+$85.50
$28.14	+99.0%	+$85.50

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 $12.07 on the downside to $16.21 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 16.93% 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 TTD at 51.14%. As a Technology 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 Technology 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 at $14.14 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed TTD chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 51.14%), the computed maximum profit is $85.50 per contract and the computed maximum loss is -$64.50 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 $14.15 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The TTD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.66%; 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 51.14% with IV rank near 16.93%, 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.