UFPT Collar Strategy
UFPT (UFP Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
UFP Technologies, Inc. specializes in the engineering and custom fabrication of components, subassemblies, finished products, and packaging, primarily utilizing advanced foams, films, and plastics. A significant portion of its business is dedicated to the medical sector, where its single-use and single-patient devices and parts are integral to a broad spectrum of applications, including general medical devices, disposable wound care, infection control, minimally invasive surgical tools, wearable technologies, orthopedic soft goods, and protective packaging for orthopedic implants. Beyond healthcare, the company extends its expertise to the automotive, aerospace and defense, consumer, electronics, and industrial markets. Here, its engineered products and components are incorporated into diverse items such as military uniform and gear, automotive interior trim, athletic padding, sustainable protective packaging, air filtration systems, abrasive nail files, and custom protective cases and inserts. UFP Technologies markets and distributes its offerings across the United States, predominantly through a direct sales force supported by independent manufacturer representatives. The company, established in 1963, is headquartered in Newburyport, Massachusetts.
UFPT (UFP Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $2.49B, a trailing P/E of 34.48, a beta of 1.07 versus the broader market, a 52-week range of 173.86-338.71, average daily share volume of 217K, a public-listing history dating back to 1993, approximately 5K full-time employees. These structural characteristics shape how UFPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places UFPT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on UFPT?
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.
UFPT snapshot
As of August 14, 2026, spot at $324.26, ATM IV 31.70%, IV rank 6.49%, expected move 9.09%. The collar on UFPT 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 35-day expiry.
Why this collar structure on UFPT specifically: IV regime affects collar pricing on both sides; compressed UFPT IV at 31.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.09% (roughly $29.47 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 UFPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFPT should anchor to the underlying notional of $324.26 per share and to the trader's directional view on UFPT stock.
UFPT collar setup
The UFPT 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 UFPT at $324.26 on that close, the first option leg uses a $340.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFPT 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 UFPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $324.26 | long |
| Sell 1 | Call | $340.00 | $6.05 |
| Buy 1 | Put | $310.00 | $7.00 |
UFPT collar risk and reward
- Net Premium / Debit
- -$32,521.00
- Max Profit (per contract)
- $1,479.00
- Max Loss (per contract)
- -$1,521.00
- Breakeven(s)
- $325.21
- Risk / Reward Ratio
- 0.972
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.
UFPT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UFPT. 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% | -$1,521.00 |
| $71.70 | -77.9% | -$1,521.00 |
| $143.40 | -55.8% | -$1,521.00 |
| $215.09 | -33.7% | -$1,521.00 |
| $286.79 | -11.6% | -$1,521.00 |
| $358.48 | +10.6% | +$1,479.00 |
| $430.18 | +32.7% | +$1,479.00 |
| $501.87 | +54.8% | +$1,479.00 |
| $573.57 | +76.9% | +$1,479.00 |
| $645.26 | +99.0% | +$1,479.00 |
When traders use collar on UFPT
Collars on UFPT hedge an existing long UFPT 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.
UFPT thesis for this collar
The market-implied 1-standard-deviation range for UFPT extends from approximately $294.79 on the downside to $353.73 on the upside. A UFPT collar hedges an existing long UFPT 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 UFPT IV rank near 6.49% 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 UFPT at 31.70%. As a Healthcare name, UFPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFPT-specific events.
UFPT 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. UFPT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFPT alongside the broader basket even when UFPT-specific fundamentals are unchanged. Always rebuild the position from current UFPT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UFPT?
- A collar on UFPT is the collar strategy applied to UFPT (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 UFPT stock at $324.26 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UFPT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UFPT 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 UFPT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.70%), the computed maximum profit is $1,479.00 per contract and the computed maximum loss is -$1,521.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UFPT collar?
- The breakeven for the UFPT collar priced on this page is roughly $325.21 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 UFPT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UFPT?
- Collars on UFPT hedge an existing long UFPT 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 UFPT implied volatility affect this collar?
- UFPT ATM IV is at 31.70% with IV rank near 6.49%, 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.