AVNS Collar Strategy
AVNS (Avanos Medical, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
Avanos Medical, Inc., a medical technology company, focuses on delivering medical device solutions in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. It offers a portfolio of chronic care products that include digestive health products, such as Mic-Key enteral feeding tubes, Corpak patient feeding solutions, and NeoMed neonatal and pediatric feeding solutions; and respiratory health products, such as closed airway suction systems and other airway management devices under the Ballard, Microcuff, and Endoclear brands. The company also provides a portfolio of non-opioid pain solutions, including acute pain products, such as On-Q and ambIT surgical pain pumps, Game Ready cold, and compression therapy systems; and interventional pain solutions, which offers minimally invasive pain-relieving therapies, such as Coolief pain relief therapy. It markets its products directly to hospitals and other healthcare providers, healthcare facilities, and other end-user customers, as well as through third-party wholesale distributors. The company was formerly known as Halyard Health, Inc. and changed its name to Avanos Medical, Inc. in June 2018. Avanos Medical, Inc. was incorporated in 2014 and is headquartered in Alpharetta, Georgia.
AVNS (Avanos Medical, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.16B, a beta of 1.59 versus the broader market, a 52-week range of 9.303-24.91, average daily share volume of 1.3M, a public-listing history dating back to 2014, approximately 2K full-time employees. These structural characteristics shape how AVNS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.59 indicates AVNS 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 AVNS?
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 AVNS snapshot
As of May 15, 2026, spot at $24.73, ATM IV 39.00%, IV rank 12.18%, expected move 11.18%. The collar on AVNS 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 AVNS specifically: IV regime affects collar pricing on both sides; compressed AVNS IV at 39.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.18% (roughly $2.77 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 AVNS expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVNS should anchor to the underlying notional of $24.73 per share and to the trader's directional view on AVNS stock.
AVNS collar setup
The AVNS 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 AVNS near $24.73, the first option leg uses a $25.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVNS 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 AVNS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $24.73 | long |
| Sell 1 | Call | $25.97 | N/A |
| Buy 1 | Put | $23.49 | N/A |
AVNS 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.
AVNS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVNS. 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 AVNS
Collars on AVNS hedge an existing long AVNS 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.
AVNS thesis for this collar
The market-implied 1-standard-deviation range for AVNS extends from approximately $21.96 on the downside to $27.50 on the upside. A AVNS collar hedges an existing long AVNS 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 AVNS IV rank near 12.18% 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 AVNS at 39.00%. As a Healthcare name, AVNS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVNS-specific events.
AVNS 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. AVNS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVNS alongside the broader basket even when AVNS-specific fundamentals are unchanged. Always rebuild the position from current AVNS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVNS?
- A collar on AVNS is the collar strategy applied to AVNS (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 AVNS stock trading near $24.73, the strikes shown on this page are snapped to the nearest listed AVNS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVNS 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 AVNS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 39.00%), 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 AVNS collar?
- The breakeven for the AVNS 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 AVNS market-implied 1-standard-deviation expected move is approximately 11.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVNS?
- Collars on AVNS hedge an existing long AVNS 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 AVNS implied volatility affect this collar?
- AVNS ATM IV is at 39.00% with IV rank near 12.18%, 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.