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 $241.0M, a beta of 0.53 versus the broader market, a 52-week range of 2.96-40.37, average daily share volume of 2.3M, 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 August 14, 2026, spot at $6.63, ATM IV 269.70%, IV rank 52.83%, expected move 77.32%. The collar on CAPR below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on CAPR specifically: IV regime affects collar pricing on both sides; mid-range CAPR IV at 269.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 77.32% (roughly $5.13 on the underlying). The 35-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 $6.63 per share and to the trader's directional view on CAPR stock.
CAPR collar setup
The CAPR collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CAPR at $6.63 on that close, the first option leg uses a $7.00 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 35-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 | $6.63 | long |
| Sell 1 | Call | $7.00 | $1.95 |
| Buy 1 | Put | $6.00 | $1.60 |
CAPR collar risk and reward
- Net Premium / Debit
- -$628.00
- Max Profit (per contract)
- $72.00
- Max Loss (per contract)
- -$28.00
- Breakeven(s)
- $6.28
- Risk / Reward Ratio
- 2.571
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 | -99.8% | -$28.00 |
| $1.47 | -77.8% | -$28.00 |
| $2.94 | -55.7% | -$28.00 |
| $4.40 | -33.6% | -$28.00 |
| $5.87 | -11.5% | -$28.00 |
| $7.33 | +10.6% | +$72.00 |
| $8.80 | +32.7% | +$72.00 |
| $10.26 | +54.8% | +$72.00 |
| $11.73 | +76.9% | +$72.00 |
| $13.19 | +99.0% | +$72.00 |
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 $1.50 on the downside to $11.76 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 52.83% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CAPR should anchor more to the directional view and the expected-move geometry. 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 $6.63 on the August 14, 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 269.70%), the computed maximum profit is $72.00 per contract and the computed maximum loss is -$28.00 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 roughly $6.28 at expiration, derived from the August 14, 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 77.32%; 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 269.70% with IV rank near 52.83%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.