ARAY Collar Strategy
ARAY (Accuray Incorporated), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Accuray Incorporated designs, develops, manufactures, and sells radiosurgery and radiation therapy systems for the treatment of tumors in the United States, Canada, Latin America, Australia, New Zealand, Europe, the Middle East, India, Africa, Japan, China, and rest of the Asia Pacific region. It offers the CyberKnife System, a robotic stereotactic radiosurgery and stereotactic body radiation therapy system used for the treatment of primary and metastatic tumors outside the brain, including tumors on or near the spine and in the breast, kidney, liver, lung, pancreas, and prostate. The company also provides the TomoTherapy System, including the Radixact System, which allows for integrated radiation treatment planning, delivery, and data management, enabling clinicians to deliver ultra-precise treatments to approximately 50 patients per day; iDMS data management system, a fully integrated treatment planning and data management systems; and Accuray precision treatment planning system, a treatment planning and data management systems. In addition, it offers post-contract customer support, installation, training, and other professional services. The company primarily markets its products directly to customers, including hospitals and stand-alone treatment facilities through its sales organization, as well as to customers through sales agents and group purchasing organizations in the United States; and to customers directly and through distributors and sales agents internationally. Accuray Incorporated was incorporated in 1990 and is headquartered in Madison, Wisconsin.
ARAY (Accuray Incorporated) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $35.9M, a beta of 1.43 versus the broader market, a 52-week range of 0.28-2.1, average daily share volume of 1.4M, a public-listing history dating back to 2007, approximately 987 full-time employees. These structural characteristics shape how ARAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.43 indicates ARAY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on ARAY?
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 ARAY snapshot
As of May 15, 2026, spot at $0.27, ATM IV 24.70%, IV rank 0.98%, expected move 7.08%. The collar on ARAY 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 ARAY specifically: IV regime affects collar pricing on both sides; compressed ARAY IV at 24.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.08% (roughly $0.02 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 ARAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on ARAY should anchor to the underlying notional of $0.27 per share and to the trader's directional view on ARAY stock.
ARAY collar setup
The ARAY 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 ARAY near $0.27, the first option leg uses a $0.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ARAY 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 ARAY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $0.27 | long |
| Sell 1 | Call | $0.28 | N/A |
| Buy 1 | Put | $0.26 | N/A |
ARAY 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.
ARAY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ARAY. 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 ARAY
Collars on ARAY hedge an existing long ARAY 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.
ARAY thesis for this collar
The market-implied 1-standard-deviation range for ARAY extends from approximately $0.25 on the downside to $0.29 on the upside. A ARAY collar hedges an existing long ARAY 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 ARAY IV rank near 0.98% 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 ARAY at 24.70%. As a Healthcare name, ARAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ARAY-specific events.
ARAY 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. ARAY positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ARAY alongside the broader basket even when ARAY-specific fundamentals are unchanged. Always rebuild the position from current ARAY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ARAY?
- A collar on ARAY is the collar strategy applied to ARAY (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 ARAY stock trading near $0.27, the strikes shown on this page are snapped to the nearest listed ARAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ARAY 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 ARAY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.70%), 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 ARAY collar?
- The breakeven for the ARAY 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 ARAY market-implied 1-standard-deviation expected move is approximately 7.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ARAY?
- Collars on ARAY hedge an existing long ARAY 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 ARAY implied volatility affect this collar?
- ARAY ATM IV is at 24.70% with IV rank near 0.98%, 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.