ESPR Collar Strategy
ESPR (Esperion Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Esperion Therapeutics, Inc. operates as a pharmaceutical firm, concentrating on the development and commercialization of treatments for individuals with high levels of low-density lipoprotein (LDL) cholesterol. The company's flagship pharmaceutical products are NEXLETOL (bempedoic acid) and NEXLIZET (a tablet combining bempedoic acid and ezetimibe), prescribed for managing conditions such as atherosclerotic cardiovascular disease or heterozygous familial hypercholesterolemia. In addition, Esperion maintains a licensing and collaborative partnership with Daiichi Sankyo Europe GmbH, alongside an agreement with Serometrix to acquire rights to an oral, small molecule PCSK9 inhibitor program. Established in 2008, the company's corporate offices are situated in Ann Arbor, Michigan.
ESPR (Esperion Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $659.1M, a beta of 1.07 versus the broader market, a 52-week range of 0.95-4.18, average daily share volume of 13.1M, a public-listing history dating back to 2013, approximately 304 full-time employees. These structural characteristics shape how ESPR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.07 places ESPR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on ESPR?
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 ESPR snapshot
As of June 30, 2026, spot at $3.17, ATM IV 265.20%, IV rank 56.46%, expected move 76.03%. The collar on ESPR 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 17-day expiry.
Why this collar structure on ESPR specifically: IV regime affects collar pricing on both sides; mid-range ESPR IV at 265.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 76.03% (roughly $2.41 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ESPR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ESPR should anchor to the underlying notional of $3.17 per share and to the trader's directional view on ESPR stock.
ESPR collar setup
The ESPR 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 ESPR near $3.17, the first option leg uses a $3.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ESPR chain at a 17-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 ESPR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.17 | long |
| Sell 1 | Call | $3.33 | N/A |
| Buy 1 | Put | $3.01 | N/A |
ESPR 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.
ESPR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ESPR. 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 ESPR
Collars on ESPR hedge an existing long ESPR 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.
ESPR thesis for this collar
The market-implied 1-standard-deviation range for ESPR extends from approximately $0.76 on the downside to $5.58 on the upside. A ESPR collar hedges an existing long ESPR 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 ESPR IV rank near 56.46% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ESPR should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ESPR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ESPR-specific events.
ESPR 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. ESPR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ESPR alongside the broader basket even when ESPR-specific fundamentals are unchanged. Always rebuild the position from current ESPR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ESPR?
- A collar on ESPR is the collar strategy applied to ESPR (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 ESPR stock trading near $3.17, the strikes shown on this page are snapped to the nearest listed ESPR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ESPR 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 ESPR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 265.20%), 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 ESPR collar?
- The breakeven for the ESPR 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 ESPR market-implied 1-standard-deviation expected move is approximately 76.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ESPR?
- Collars on ESPR hedge an existing long ESPR 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 ESPR implied volatility affect this collar?
- ESPR ATM IV is at 265.20% with IV rank near 56.46%, 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.