ACAD Collar Strategy
ACAD (ACADIA Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders. The company offers NUPLAZID (pimavanserin) for the treatment of hallucinations and delusions associated with Parkinson's disease psychosis. It's pipeline include, pimavanserin, under phase 3 development for the treatment of Alzheimer's disease psychosis, and negative symptoms of schizophrenia; Trofinetide, a novel synthetic analog, under phase 3 development for the treatment of Rett syndrome; ACP-044, a novel first-in-class orally administered non-opioid analgesic, under phase 2 development for treating acute and chronic pain; and ACP-319, a positive allosteric modulator of the muscarinic receptor, under phase 1 development for treating schizophrenia and cognition in Alzheimer's. ACADIA Pharmaceuticals Inc. was founded in 1993 and is headquartered in San Diego, California.
ACAD (ACADIA Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.80B, a trailing P/E of 10.07, a beta of 0.86 versus the broader market, a 52-week range of 16.97-28.35, average daily share volume of 1.9M, a public-listing history dating back to 2004, approximately 653 full-time employees. These structural characteristics shape how ACAD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places ACAD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 10.07 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on ACAD?
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 ACAD snapshot
As of May 15, 2026, spot at $21.43, ATM IV 42.30%, IV rank 22.61%, expected move 12.13%. The collar on ACAD 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 ACAD specifically: IV regime affects collar pricing on both sides; compressed ACAD IV at 42.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.13% (roughly $2.60 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 ACAD expiries trade a higher absolute premium for lower per-day decay. Position sizing on ACAD should anchor to the underlying notional of $21.43 per share and to the trader's directional view on ACAD stock.
ACAD collar setup
The ACAD 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 ACAD near $21.43, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ACAD 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 ACAD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.43 | long |
| Sell 1 | Call | $23.00 | $0.53 |
| Buy 1 | Put | $20.00 | $0.48 |
ACAD collar risk and reward
- Net Premium / Debit
- -$2,138.00
- Max Profit (per contract)
- $162.00
- Max Loss (per contract)
- -$138.00
- Breakeven(s)
- $21.38
- Risk / Reward Ratio
- 1.174
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.
ACAD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ACAD. 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% | -$138.00 |
| $4.75 | -77.8% | -$138.00 |
| $9.48 | -55.7% | -$138.00 |
| $14.22 | -33.6% | -$138.00 |
| $18.96 | -11.5% | -$138.00 |
| $23.70 | +10.6% | +$162.00 |
| $28.43 | +32.7% | +$162.00 |
| $33.17 | +54.8% | +$162.00 |
| $37.91 | +76.9% | +$162.00 |
| $42.64 | +99.0% | +$162.00 |
When traders use collar on ACAD
Collars on ACAD hedge an existing long ACAD 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.
ACAD thesis for this collar
The market-implied 1-standard-deviation range for ACAD extends from approximately $18.83 on the downside to $24.03 on the upside. A ACAD collar hedges an existing long ACAD 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 ACAD IV rank near 22.61% 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 ACAD at 42.30%. As a Healthcare name, ACAD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ACAD-specific events.
ACAD 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. ACAD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ACAD alongside the broader basket even when ACAD-specific fundamentals are unchanged. Always rebuild the position from current ACAD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ACAD?
- A collar on ACAD is the collar strategy applied to ACAD (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 ACAD stock trading near $21.43, the strikes shown on this page are snapped to the nearest listed ACAD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ACAD 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 ACAD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $162.00 per contract and the computed maximum loss is -$138.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ACAD collar?
- The breakeven for the ACAD collar priced on this page is roughly $21.38 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 ACAD market-implied 1-standard-deviation expected move is approximately 12.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ACAD?
- Collars on ACAD hedge an existing long ACAD 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 ACAD implied volatility affect this collar?
- ACAD ATM IV is at 42.30% with IV rank near 22.61%, 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.