DMAC Collar Strategy
DMAC (DiaMedica Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
DiaMedica Therapeutics Inc., a clinical stage biopharmaceutical company, develops treatments for neurological and kidney diseases. The company's lead drug candidate is DM199, a recombinant human tissue kallikrein-1 protein, which is in Phase 2 REDUX trial for the treatment of patients with moderate or severe chronic kidney disease caused by Type I or Type II diabetes; and Phase 2/3 REMEDY2 trials for the treatment of patients with acute ischemic stroke. It is also developing DM300 that is in pre-clinical stage for the treatment of inflammatory diseases. The company was formerly known as DiaMedica Inc. and changed its name to DiaMedica Therapeutics Inc. in December 2016. DiaMedica Therapeutics Inc. was incorporated in 2000 and is headquartered in Minneapolis, Minnesota.
DMAC (DiaMedica Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $337.3M, a beta of 0.99 versus the broader market, a 52-week range of 3.475-10.4195, average daily share volume of 198K, a public-listing history dating back to 2012, approximately 27 full-time employees. These structural characteristics shape how DMAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.99 places DMAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on DMAC?
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 DMAC snapshot
As of May 15, 2026, spot at $6.05, ATM IV 109.00%, IV rank 23.19%, expected move 31.25%. The collar on DMAC 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 DMAC specifically: IV regime affects collar pricing on both sides; compressed DMAC IV at 109.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.25% (roughly $1.89 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 DMAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DMAC should anchor to the underlying notional of $6.05 per share and to the trader's directional view on DMAC stock.
DMAC collar setup
The DMAC 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 DMAC near $6.05, the first option leg uses a $6.35 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DMAC 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 DMAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.05 | long |
| Sell 1 | Call | $6.35 | N/A |
| Buy 1 | Put | $5.75 | N/A |
DMAC 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.
DMAC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DMAC. 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 DMAC
Collars on DMAC hedge an existing long DMAC 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.
DMAC thesis for this collar
The market-implied 1-standard-deviation range for DMAC extends from approximately $4.16 on the downside to $7.94 on the upside. A DMAC collar hedges an existing long DMAC 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 DMAC IV rank near 23.19% 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 DMAC at 109.00%. As a Healthcare name, DMAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DMAC-specific events.
DMAC 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. DMAC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DMAC alongside the broader basket even when DMAC-specific fundamentals are unchanged. Always rebuild the position from current DMAC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DMAC?
- A collar on DMAC is the collar strategy applied to DMAC (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 DMAC stock trading near $6.05, the strikes shown on this page are snapped to the nearest listed DMAC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DMAC 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 DMAC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 109.00%), 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 DMAC collar?
- The breakeven for the DMAC 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 DMAC market-implied 1-standard-deviation expected move is approximately 31.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DMAC?
- Collars on DMAC hedge an existing long DMAC 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 DMAC implied volatility affect this collar?
- DMAC ATM IV is at 109.00% with IV rank near 23.19%, 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.