CRDL Collar Strategy
CRDL (Cardiol Therapeutics Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Cardiol Therapeutics Inc., a clinical-stage life sciences company, focuses on the research and development of anti-fibrotic and anti-inflammatory therapies for the treatment of cardiovascular disease (CVD). Its lead product is CardiolRx, which is in Phase II/III multi-national, randomized, double-blind, and placebo-controlled study to evaluate the efficacy and safety of CardiolRx as a cardioprotective therapy to reduce cardiovascular and respiratory events in patients hospitalized with COVID-19, as well as to evaluate the efficacy and safety of CardiolRx in acute myocarditis. The company is also developing subcutaneous formulation of CardiolRx for the treatment of fibrosis and inflammation in the heart that is related with the development and progression of heart failure. Cardiol Therapeutics Inc. was incorporated in 2017 and is headquartered in Oakville, Canada.
CRDL (Cardiol Therapeutics Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $151.9M, a beta of 0.86 versus the broader market, a 52-week range of 0.88-1.71, average daily share volume of 689K, a public-listing history dating back to 2019, approximately 18 full-time employees. These structural characteristics shape how CRDL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.86 places CRDL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on CRDL?
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 CRDL snapshot
As of May 15, 2026, spot at $1.33, ATM IV 21.50%, IV rank 0.21%, expected move 6.16%. The collar on CRDL 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 CRDL specifically: IV regime affects collar pricing on both sides; compressed CRDL IV at 21.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.16% (roughly $0.08 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 CRDL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRDL should anchor to the underlying notional of $1.33 per share and to the trader's directional view on CRDL stock.
CRDL collar setup
The CRDL 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 CRDL near $1.33, the first option leg uses a $1.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRDL 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 CRDL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.33 | long |
| Sell 1 | Call | $1.40 | N/A |
| Buy 1 | Put | $1.26 | N/A |
CRDL 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.
CRDL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CRDL. 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 CRDL
Collars on CRDL hedge an existing long CRDL 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.
CRDL thesis for this collar
The market-implied 1-standard-deviation range for CRDL extends from approximately $1.25 on the downside to $1.41 on the upside. A CRDL collar hedges an existing long CRDL 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 CRDL IV rank near 0.21% 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 CRDL at 21.50%. As a Healthcare name, CRDL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRDL-specific events.
CRDL 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. CRDL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRDL alongside the broader basket even when CRDL-specific fundamentals are unchanged. Always rebuild the position from current CRDL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CRDL?
- A collar on CRDL is the collar strategy applied to CRDL (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 CRDL stock trading near $1.33, the strikes shown on this page are snapped to the nearest listed CRDL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRDL 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 CRDL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 21.50%), 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 CRDL collar?
- The breakeven for the CRDL 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 CRDL market-implied 1-standard-deviation expected move is approximately 6.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CRDL?
- Collars on CRDL hedge an existing long CRDL 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 CRDL implied volatility affect this collar?
- CRDL ATM IV is at 21.50% with IV rank near 0.21%, 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.