CRL Collar Strategy
CRL (Charles River Laboratories International, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NYSE.
Charles River Laboratories International, Inc., a non-clinical contract research organization, provides drug discovery, non-clinical development, and safety testing services in the United States, Europe, Canada, the Asia Pacific, and internationally. It operates through three segments: Research Models and Services (RMS), Discovery and Safety Assessment (DSA), and Manufacturing Solutions (Manufacturing). The RMS segment produces and sells rodent research model strains and purpose-bred rats and mice for use by researchers. This segment also provides a range of services to assist its clients in supporting the use of research models in research and screening non-clinical drug candidates, including research models, genetically engineered models and services, insourcing solutions, and research animal diagnostic services. The DSA segment offers early and in vivo discovery services for the identification and validation of novel targets, chemical compounds, and antibodies through delivery of non-clinical drug and therapeutic candidates ready for safety assessment; and safety assessment services, such as toxicology, pathology, safety pharmacology, bioanalysis, drug metabolism, and pharmacokinetics services. The Manufacturing segment provides in vitro methods for conventional and rapid quality control testing of sterile and non-sterile pharmaceuticals and consumer products.
CRL (Charles River Laboratories International, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $7.84B, a beta of 1.45 versus the broader market, a 52-week range of 132.58-228.88, average daily share volume of 976K, a public-listing history dating back to 2000, approximately 19K full-time employees. These structural characteristics shape how CRL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates CRL 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 CRL?
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 CRL snapshot
As of May 15, 2026, spot at $150.70, ATM IV 50.30%, IV rank 35.35%, expected move 14.42%. The collar on CRL 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 CRL specifically: IV regime affects collar pricing on both sides; mid-range CRL IV at 50.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.42% (roughly $21.73 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 CRL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRL should anchor to the underlying notional of $150.70 per share and to the trader's directional view on CRL stock.
CRL collar setup
The CRL 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 CRL near $150.70, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRL 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 CRL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $150.70 | long |
| Sell 1 | Call | $160.00 | $6.45 |
| Buy 1 | Put | $145.00 | $5.90 |
CRL collar risk and reward
- Net Premium / Debit
- -$15,015.00
- Max Profit (per contract)
- $985.00
- Max Loss (per contract)
- -$515.00
- Breakeven(s)
- $150.15
- Risk / Reward Ratio
- 1.913
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.
CRL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CRL. 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 | -100.0% | -$515.00 |
| $33.33 | -77.9% | -$515.00 |
| $66.65 | -55.8% | -$515.00 |
| $99.97 | -33.7% | -$515.00 |
| $133.29 | -11.6% | -$515.00 |
| $166.61 | +10.6% | +$985.00 |
| $199.93 | +32.7% | +$985.00 |
| $233.25 | +54.8% | +$985.00 |
| $266.57 | +76.9% | +$985.00 |
| $299.89 | +99.0% | +$985.00 |
When traders use collar on CRL
Collars on CRL hedge an existing long CRL 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.
CRL thesis for this collar
The market-implied 1-standard-deviation range for CRL extends from approximately $128.97 on the downside to $172.43 on the upside. A CRL collar hedges an existing long CRL 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 CRL IV rank near 35.35% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CRL should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CRL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRL-specific events.
CRL 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. CRL positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRL alongside the broader basket even when CRL-specific fundamentals are unchanged. Always rebuild the position from current CRL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CRL?
- A collar on CRL is the collar strategy applied to CRL (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 CRL stock trading near $150.70, the strikes shown on this page are snapped to the nearest listed CRL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRL 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 CRL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.30%), the computed maximum profit is $985.00 per contract and the computed maximum loss is -$515.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRL collar?
- The breakeven for the CRL collar priced on this page is roughly $150.15 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 CRL market-implied 1-standard-deviation expected move is approximately 14.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CRL?
- Collars on CRL hedge an existing long CRL 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 CRL implied volatility affect this collar?
- CRL ATM IV is at 50.30% with IV rank near 35.35%, 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.