WTTR Collar Strategy
WTTR (Select Water Solutions, Inc.), in the Utilities sector, (Regulated Water industry), listed on NYSE.
Select Water Solutions, Inc. engages in the provision of water management and chemical solutions. It operates through the following business segments: Water Infrastructure, Water Services, and Chemical Technologies. The Water Infrastructure segment develops, builds, and operates permanent and semi-permanent infrastructure solutions to support full life cycle water management and waste treatment solutions. The Water Services segment consists of services businesses, including water transfer, flowback and well testing, fluids hauling, water containment and water network automation, primarily serving E&P companies. The Chemical Technologies segment includes logistics and provides a full suite of chemicals used in hydraulic fracturing, stimulation, cementing, pipelines and well completions. The company was founded on November 21, 2016 and is headquartered in Gainesville, TX.
WTTR (Select Water Solutions, Inc.) trades in the Utilities sector, specifically Regulated Water, with a market capitalization of approximately $1.91B, a trailing P/E of 93.57, a beta of 0.98 versus the broader market, a 52-week range of 7.815-18.5, average daily share volume of 2.0M, a public-listing history dating back to 2017, approximately 4K full-time employees. These structural characteristics shape how WTTR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places WTTR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 93.57 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. WTTR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on WTTR?
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 WTTR snapshot
As of May 15, 2026, spot at $18.91, ATM IV 49.90%, IV rank 25.48%, expected move 14.31%. The collar on WTTR 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 WTTR specifically: IV regime affects collar pricing on both sides; compressed WTTR IV at 49.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.31% (roughly $2.71 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 WTTR expiries trade a higher absolute premium for lower per-day decay. Position sizing on WTTR should anchor to the underlying notional of $18.91 per share and to the trader's directional view on WTTR stock.
WTTR collar setup
The WTTR 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 WTTR near $18.91, the first option leg uses a $19.86 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WTTR 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 WTTR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $18.91 | long |
| Sell 1 | Call | $19.86 | N/A |
| Buy 1 | Put | $17.96 | N/A |
WTTR 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.
WTTR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on WTTR. 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 WTTR
Collars on WTTR hedge an existing long WTTR 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.
WTTR thesis for this collar
The market-implied 1-standard-deviation range for WTTR extends from approximately $16.20 on the downside to $21.62 on the upside. A WTTR collar hedges an existing long WTTR 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 WTTR IV rank near 25.48% 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 WTTR at 49.90%. As a Utilities name, WTTR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WTTR-specific events.
WTTR 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. WTTR positions also carry Utilities sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move WTTR alongside the broader basket even when WTTR-specific fundamentals are unchanged. Always rebuild the position from current WTTR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on WTTR?
- A collar on WTTR is the collar strategy applied to WTTR (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 WTTR stock trading near $18.91, the strikes shown on this page are snapped to the nearest listed WTTR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are WTTR 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 WTTR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.90%), 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 WTTR collar?
- The breakeven for the WTTR collar priced on this page is no defined breakeven on the modeled curve 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 WTTR market-implied 1-standard-deviation expected move is approximately 14.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on WTTR?
- Collars on WTTR hedge an existing long WTTR 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 WTTR implied volatility affect this collar?
- WTTR ATM IV is at 49.90% with IV rank near 25.48%, 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.