CAPR Collar Strategy
CAPR (Capricor Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Capricor Therapeutics, Inc. is a clinical-stage biotechnology company, which focuses on the development of transformative cell and exosome-based therapeutics for treating Duchenne muscular dystrophy (“DMD”), a rare form of muscular dystrophy which results in muscle degeneration and premature death, and other diseases with unmet medical needs. Its product candidate consists of CAP-1002, Engineered Exosomes, CAP-2003, and Exosome-Based Vaccine. The company was founded on June 17, 1996 and is headquartered in San Diego, CA.
CAPR (Capricor Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $551.9M, a beta of 0.53 versus the broader market, a 52-week range of 2.96-40.37, average daily share volume of 5.9M, a public-listing history dating back to 2007, approximately 231 full-time employees. These structural characteristics shape how CAPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.53 indicates CAPR has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on CAPR?
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.
CAPR snapshot
As of November 13, 2026, spot at $9.56, ATM IV 470.50%, IV rank 94.91%, expected move 134.89%. The collar on CAPR below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 28-day expiry.
Why this collar structure on CAPR specifically: IV regime affects collar pricing on both sides; elevated CAPR IV at 470.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 134.89% (roughly $12.90 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CAPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on CAPR should anchor to the underlying notional of $9.56 per share and to the trader's directional view on CAPR stock.
CAPR collar setup
The CAPR collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CAPR at $9.56 on that close, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CAPR chain at a 28-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 CAPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $9.56 | long |
| Sell 1 | Call | $10.00 | $4.25 |
| Buy 1 | Put | $9.00 | $5.55 |
CAPR collar risk and reward
- Net Premium / Debit
- -$1,086.00
- Max Profit (per contract)
- -$86.00
- Max Loss (per contract)
- -$186.00
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- -0.462
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.
CAPR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CAPR. 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 | -99.9% | -$186.00 |
| $2.12 | -77.8% | -$186.00 |
| $4.24 | -55.7% | -$186.00 |
| $6.35 | -33.6% | -$186.00 |
| $8.46 | -11.5% | -$186.00 |
| $10.57 | +10.6% | -$86.00 |
| $12.69 | +32.7% | -$86.00 |
| $14.80 | +54.8% | -$86.00 |
| $16.91 | +76.9% | -$86.00 |
| $19.02 | +99.0% | -$86.00 |
When traders use collar on CAPR
Collars on CAPR hedge an existing long CAPR 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.
CAPR thesis for this collar
The market-implied 1-standard-deviation range for CAPR extends from approximately $-3.34 on the downside to $22.46 on the upside. A CAPR collar hedges an existing long CAPR 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 CAPR IV rank near 94.91% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on CAPR at 470.50%. As a Healthcare name, CAPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CAPR-specific events.
CAPR 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. CAPR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CAPR alongside the broader basket even when CAPR-specific fundamentals are unchanged. Always rebuild the position from current CAPR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CAPR?
- A collar on CAPR is the collar strategy applied to CAPR (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 CAPR stock at $9.56 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed CAPR chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are CAPR 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 CAPR collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 470.50%), the computed maximum profit is -$86.00 per contract and the computed maximum loss is -$186.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CAPR collar?
- The breakeven for the CAPR collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the November 13, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The CAPR market-implied 1-standard-deviation expected move in the same options snapshot is approximately 134.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CAPR?
- Collars on CAPR hedge an existing long CAPR 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 CAPR implied volatility affect this collar?
- CAPR ATM IV is at 470.50% with IV rank near 94.91%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.