CURE Collar Strategy
CURE (Direxion Daily Healthcare Bull 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Direxion Daily Healthcare Bull 3X Shares seeks daily investment results, before fees and expenses, of 300% of the performance of the Health Care Select Sector Index. There is no guarantee the fund will achieve its stated investment objectives.
CURE (Direxion Daily Healthcare Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $140.9M, a beta of 1.45 versus the broader market, a 52-week range of 66-123.8, average daily share volume of 51K, a public-listing history dating back to 2011. These structural characteristics shape how CURE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates CURE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CURE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CURE?
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 CURE snapshot
As of May 15, 2026, spot at $87.22, ATM IV 48.90%, IV rank 48.54%, expected move 14.02%. The collar on CURE 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 CURE specifically: IV regime affects collar pricing on both sides; mid-range CURE IV at 48.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.02% (roughly $12.23 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 CURE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CURE should anchor to the underlying notional of $87.22 per share and to the trader's directional view on CURE etf.
CURE collar setup
The CURE 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 CURE near $87.22, the first option leg uses a $92.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CURE 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 CURE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $87.22 | long |
| Sell 1 | Call | $92.00 | $3.15 |
| Buy 1 | Put | $84.00 | $3.38 |
CURE collar risk and reward
- Net Premium / Debit
- -$8,744.50
- Max Profit (per contract)
- $455.50
- Max Loss (per contract)
- -$344.50
- Breakeven(s)
- $87.45
- Risk / Reward Ratio
- 1.322
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.
CURE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CURE. 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% | -$344.50 |
| $19.29 | -77.9% | -$344.50 |
| $38.58 | -55.8% | -$344.50 |
| $57.86 | -33.7% | -$344.50 |
| $77.14 | -11.6% | -$344.50 |
| $96.43 | +10.6% | +$455.50 |
| $115.71 | +32.7% | +$455.50 |
| $135.00 | +54.8% | +$455.50 |
| $154.28 | +76.9% | +$455.50 |
| $173.56 | +99.0% | +$455.50 |
When traders use collar on CURE
Collars on CURE hedge an existing long CURE etf 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.
CURE thesis for this collar
The market-implied 1-standard-deviation range for CURE extends from approximately $74.99 on the downside to $99.45 on the upside. A CURE collar hedges an existing long CURE 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 CURE IV rank near 48.54% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CURE should anchor more to the directional view and the expected-move geometry. As a Financial Services name, CURE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CURE-specific events.
CURE 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. CURE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CURE alongside the broader basket even when CURE-specific fundamentals are unchanged. Always rebuild the position from current CURE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CURE?
- A collar on CURE is the collar strategy applied to CURE (etf). 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 CURE etf trading near $87.22, the strikes shown on this page are snapped to the nearest listed CURE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CURE 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 CURE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.90%), the computed maximum profit is $455.50 per contract and the computed maximum loss is -$344.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CURE collar?
- The breakeven for the CURE collar priced on this page is roughly $87.45 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 CURE market-implied 1-standard-deviation expected move is approximately 14.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CURE?
- Collars on CURE hedge an existing long CURE etf 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 CURE implied volatility affect this collar?
- CURE ATM IV is at 48.90% with IV rank near 48.54%, 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.