TWI Collar Strategy
TWI (Titan International, Inc.), in the Industrials sector, (Agricultural - Machinery industry), listed on NYSE.
Based in Quincy, Illinois, Titan International, Inc., along with its various subsidiaries, is a prominent global manufacturer and distributor of specialized wheels, tires, and undercarriage systems. These essential components are engineered for off-highway vehicles and are supplied to customers across an extensive international footprint, encompassing North America, Europe, Latin America, the Commonwealth of Independent States region, the Middle East, Africa, and Russia. The company's operations are divided into three primary market segments: Agricultural, Earthmoving/Construction, and Consumer. Within the agricultural sector, Titan provides a comprehensive range of rims, wheels, tires, and undercarriage solutions tailored for a wide array of farm machinery, including tractors, combines, skidders, plows, planters, and irrigation equipment. Expanding beyond agriculture, Titan's product offerings also include heavy-duty rims, wheels, tires, and undercarriage systems for a diverse range of industrial off-the-road applications. These serve the earthmoving, mining, military, construction, and forestry industries, supporting vehicles such as skid steers, aerial lifts, cranes, graders, scrapers, various types of dump trucks, backhoe loaders, excavators, and more.
TWI (Titan International, Inc.) trades in the Industrials sector, specifically Agricultural - Machinery, with a market capitalization of approximately $449.9M, a beta of 1.47 versus the broader market, a 52-week range of 6.43-11.7, average daily share volume of 536K, a public-listing history dating back to 1993, approximately 8K full-time employees. These structural characteristics shape how TWI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.47 indicates TWI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TWI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TWI?
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.
TWI snapshot
As of August 14, 2026, spot at $6.80, ATM IV 68.80%, IV rank 21.11%, expected move 19.72%. The collar on TWI below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on TWI specifically: IV regime affects collar pricing on both sides; compressed TWI IV at 68.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.72% (roughly $1.34 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TWI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TWI should anchor to the underlying notional of $6.80 per share and to the trader's directional view on TWI stock.
TWI collar setup
The TWI 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 TWI at $6.80 on that close, the first option leg uses a $7.14 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TWI chain at a 35-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 TWI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.80 | long |
| Sell 1 | Call | $7.14 | N/A |
| Buy 1 | Put | $6.46 | N/A |
TWI 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.
TWI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TWI. 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 TWI
Collars on TWI hedge an existing long TWI 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.
TWI thesis for this collar
The market-implied 1-standard-deviation range for TWI extends from approximately $5.46 on the downside to $8.14 on the upside. A TWI collar hedges an existing long TWI 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 TWI IV rank near 21.11% 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 TWI at 68.80%. As a Industrials name, TWI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TWI-specific events.
TWI 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. TWI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TWI alongside the broader basket even when TWI-specific fundamentals are unchanged. Always rebuild the position from current TWI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TWI?
- A collar on TWI is the collar strategy applied to TWI (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 TWI stock at $6.80 on the most recent close, the strikes shown on this page are snapped to the nearest listed TWI chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are TWI 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 TWI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 68.80%), 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 TWI collar?
- The breakeven for the TWI collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 TWI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TWI?
- Collars on TWI hedge an existing long TWI 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 TWI implied volatility affect this collar?
- TWI ATM IV is at 68.80% with IV rank near 21.11%, 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.