CRVL Collar Strategy
CRVL (CorVel Corporation), in the Financial Services sector, (Insurance - Brokers industry), listed on NASDAQ.
CorVel Corporation provides workers' compensation, auto, liability, and health solutions for employers, third party administrators, insurance companies, and government agencies to assist them in managing the medical costs and monitoring the quality of care associated with healthcare claims. It applies technology, including artificial intelligence, machine learning, and natural language processing to enhance the managing of episodes of care and the related health care costs. The company offers network solutions services, including automated medical fee auditing, preferred provider management and reimbursement services, retrospective utilization review, facility claim review, professional review, pharmacy services, directed care services, Medicare solutions, clearinghouse services, independent medical examinations, and inpatient medical bill review. It also provides a range of patient management services, such as claims management, case management, 24/7 nurse triage, utilization management, vocational rehabilitation, and life care planning, as well as processing of claims for self-insured payors with respect to property and casualty insurance. The company was incorporated in 1987 and is headquartered in Fort Worth, Texas.
CRVL (CorVel Corporation) trades in the Financial Services sector, specifically Insurance - Brokers, with a market capitalization of approximately $2.98B, a trailing P/E of 28.27, a beta of 0.98 versus the broader market, a 52-week range of 44.83-117.22, average daily share volume of 232K, a public-listing history dating back to 1991, approximately 5K full-time employees. These structural characteristics shape how CRVL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.98 places CRVL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on CRVL?
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 CRVL snapshot
As of May 15, 2026, spot at $56.96, ATM IV 46.00%, IV rank 11.35%, expected move 13.19%. The collar on CRVL 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 CRVL specifically: IV regime affects collar pricing on both sides; compressed CRVL IV at 46.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.19% (roughly $7.51 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 CRVL expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRVL should anchor to the underlying notional of $56.96 per share and to the trader's directional view on CRVL stock.
CRVL collar setup
The CRVL 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 CRVL near $56.96, the first option leg uses a $59.81 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRVL 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 CRVL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $56.96 | long |
| Sell 1 | Call | $59.81 | N/A |
| Buy 1 | Put | $54.11 | N/A |
CRVL 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.
CRVL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CRVL. 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 CRVL
Collars on CRVL hedge an existing long CRVL 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.
CRVL thesis for this collar
The market-implied 1-standard-deviation range for CRVL extends from approximately $49.45 on the downside to $64.47 on the upside. A CRVL collar hedges an existing long CRVL 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 CRVL IV rank near 11.35% 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 CRVL at 46.00%. As a Financial Services name, CRVL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRVL-specific events.
CRVL 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. CRVL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRVL alongside the broader basket even when CRVL-specific fundamentals are unchanged. Always rebuild the position from current CRVL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CRVL?
- A collar on CRVL is the collar strategy applied to CRVL (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 CRVL stock trading near $56.96, the strikes shown on this page are snapped to the nearest listed CRVL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRVL 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 CRVL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.00%), 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 CRVL collar?
- The breakeven for the CRVL 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 CRVL market-implied 1-standard-deviation expected move is approximately 13.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CRVL?
- Collars on CRVL hedge an existing long CRVL 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 CRVL implied volatility affect this collar?
- CRVL ATM IV is at 46.00% with IV rank near 11.35%, 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.