How are ADMA 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 ADMA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.90%), the computed maximum profit is $64.00 per contract and the computed maximum loss is -$36.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a ADMA collar?

The breakeven for the ADMA collar priced on this page is roughly $8.36 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current ADMA implied volatility affect this collar?

ADMA ATM IV is at 61.90% with IV rank near 10.11%, 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.

ADMA Collar Strategy

ADMA (ADMA Biologics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

ADMA Biologics, Inc. functions as a biopharmaceutical company specializing in the development, manufacturing, and commercialization of advanced biologic therapies derived from blood plasma. These specialized products are engineered to address immune system disorders and infectious diseases, catering to markets across the United States and internationally. Their current product portfolio includes BIVIGAM and ASCENIV, both intravenous immune globulin (IVIG) treatments prescribed for primary humoral immunodeficiency (PI). Additionally, the company offers Nabi-HB, utilized for immediate treatment following acute exposure to the Hepatitis B virus and other specified exposures. Beyond its existing offerings, ADMA is actively developing a pipeline of new plasma-derived therapeutics. This includes immunoglobulin products specifically targeting the prevention and treatment of S. pneumonia infections.

ADMA (ADMA Biologics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.03B, a trailing P/E of 12.49, a beta of 0.73 versus the broader market, a 52-week range of 7.21-20.458, average daily share volume of 5.5M, a public-listing history dating back to 2013, approximately 685 full-time employees. These structural characteristics shape how ADMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.73 places ADMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.

What is a collar on ADMA?

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 ADMA snapshot

As of June 30, 2026, spot at $8.46, ATM IV 61.90%, IV rank 10.11%, expected move 17.75%. The collar on ADMA 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 52-day expiry.

Why this collar structure on ADMA specifically: IV regime affects collar pricing on both sides; compressed ADMA IV at 61.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.75% (roughly $1.50 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ADMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADMA should anchor to the underlying notional of $8.46 per share and to the trader's directional view on ADMA stock.

ADMA collar setup

The ADMA 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 ADMA near $8.46, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADMA chain at a 52-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 ADMA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$8.46	long
Sell 1	Call	$9.00	$0.65
Buy 1	Put	$8.00	$0.55

ADMA collar risk and reward

Net Premium / Debit: -$836.00
Max Profit (per contract): $64.00
Max Loss (per contract): -$36.00
Breakeven(s): $8.36
Risk / Reward Ratio: 1.778

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.

ADMA collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on ADMA. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$36.00
$1.88	-77.8%	-$36.00
$3.75	-55.7%	-$36.00
$5.62	-33.6%	-$36.00
$7.49	-11.5%	-$36.00
$9.36	+10.6%	+$64.00
$11.23	+32.7%	+$64.00
$13.10	+54.8%	+$64.00
$14.97	+76.9%	+$64.00
$16.84	+99.0%	+$64.00

When traders use collar on ADMA

Collars on ADMA hedge an existing long ADMA 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.

ADMA thesis for this collar

The market-implied 1-standard-deviation range for ADMA extends from approximately $6.96 on the downside to $9.96 on the upside. A ADMA collar hedges an existing long ADMA 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 ADMA IV rank near 10.11% 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 ADMA at 61.90%. As a Healthcare name, ADMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADMA-specific events.

ADMA 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. ADMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADMA alongside the broader basket even when ADMA-specific fundamentals are unchanged. Always rebuild the position from current ADMA chain quotes before placing a trade.

Frequently asked questions

What is a collar on ADMA?: A collar on ADMA is the collar strategy applied to ADMA (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 ADMA stock trading near $8.46, the strikes shown on this page are snapped to the nearest listed ADMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are ADMA 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 ADMA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.90%), the computed maximum profit is $64.00 per contract and the computed maximum loss is -$36.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a ADMA collar?: The breakeven for the ADMA collar priced on this page is roughly $8.36 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.75%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on ADMA?: Collars on ADMA hedge an existing long ADMA 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 ADMA implied volatility affect this collar?: ADMA ATM IV is at 61.90% with IV rank near 10.11%, 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.