UFPT Collar Strategy
UFPT (UFP Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
UFP Technologies, Inc. designs and custom manufactures components, subassemblies, products, and packaging utilizing specialized foams, films, and plastics primarily for the medical market. Its single-use and single-patient devices and components are used in a range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging. The company also provides engineered products and components to customers in the automotive, aerospace and defense, consumer, electronics, and industrial markets, which are applied in military uniform and gear components, automotive interior trim, athletic padding, environmentally protective packaging, air filtration, abrasive nail files, and protective cases and inserts. It markets and sells its products in the United States principally through a direct sales force, as well as independent manufacturer representatives. The company was founded in 1963 and is headquartered in Newburyport, Massachusetts.
UFPT (UFP Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.70B, a trailing P/E of 24.67, a beta of 1.08 versus the broader market, a 52-week range of 173.86-274.93, average daily share volume of 224K, a public-listing history dating back to 1993, approximately 4K 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 1.08 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.
Current UFPT snapshot
As of May 15, 2026, spot at $215.12, ATM IV 40.70%, IV rank 39.77%, expected move 11.67%. The collar on UFPT 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 34-day expiry.
Why this collar structure on UFPT specifically: IV regime affects collar pricing on both sides; mid-range UFPT IV at 40.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.67% (roughly $25.10 on the underlying). The 34-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 $215.12 per share and to the trader's directional view on UFPT stock.
UFPT collar setup
The UFPT 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 UFPT near $215.12, the first option leg uses a $230.00 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 34-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 | $215.12 | long |
| Sell 1 | Call | $230.00 | $5.05 |
| Buy 1 | Put | $200.00 | $5.05 |
UFPT collar risk and reward
- Net Premium / Debit
- -$21,512.00
- Max Profit (per contract)
- $1,488.00
- Max Loss (per contract)
- -$1,512.00
- Breakeven(s)
- $215.12
- Risk / Reward Ratio
- 0.984
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% | -$1,512.00 |
| $47.57 | -77.9% | -$1,512.00 |
| $95.14 | -55.8% | -$1,512.00 |
| $142.70 | -33.7% | -$1,512.00 |
| $190.26 | -11.6% | -$1,512.00 |
| $237.83 | +10.6% | +$1,488.00 |
| $285.39 | +32.7% | +$1,488.00 |
| $332.95 | +54.8% | +$1,488.00 |
| $380.51 | +76.9% | +$1,488.00 |
| $428.08 | +99.0% | +$1,488.00 |
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 $190.02 on the downside to $240.22 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 39.77% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UFPT should anchor more to the directional view and the expected-move geometry. 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 trading near $215.12, the strikes shown on this page are snapped to the nearest listed UFPT chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 40.70%), the computed maximum profit is $1,488.00 per contract and the computed maximum loss is -$1,512.00 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 $215.12 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 UFPT market-implied 1-standard-deviation expected move is approximately 11.67%; 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 40.70% with IV rank near 39.77%, 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.