GMED Collar Strategy
GMED (Globus Medical, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.
Globus Medical, Inc., a medical device company, develops and commercializes healthcare solutions for patients with musculoskeletal disorders in the United States and internationally. It offers spine products, such as traditional fusion implants comprising pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices for treating degenerative, deformity, tumors, and trauma conditions; treatment options for motion preservation technologies that consist of dynamic stabilization, total disc replacement, and interspinous distraction devices; interventional pain management solutions to treat vertebral compression fractures; and regenerative biologic products comprising of allografts and synthetic alternatives. The company also offers products for the treatment of orthopedic trauma, including fracture plates, compression screws, intramedullary nails, and external fixation systems; and hip and knee joint solutions, including modular hip stems and acetabular cups, as well as posterior stabilizing and cruciate retaining knee arthroplasty implants. In addition, it distributes human cell, tissue, and cellular and tissue-based products. Globus Medical, Inc. was incorporated in 2003 and is headquartered in Audubon, Pennsylvania.
GMED (Globus Medical, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $10.19B, a trailing P/E of 17.43, a beta of 1.00 versus the broader market, a 52-week range of 51.79-101.4, average daily share volume of 1.2M, a public-listing history dating back to 2012, approximately 5K full-time employees. These structural characteristics shape how GMED stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.00 places GMED roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on GMED?
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 GMED snapshot
As of May 15, 2026, spot at $76.44, ATM IV 32.80%, IV rank 16.68%, expected move 9.40%. The collar on GMED 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 GMED specifically: IV regime affects collar pricing on both sides; compressed GMED IV at 32.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.40% (roughly $7.19 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 GMED expiries trade a higher absolute premium for lower per-day decay. Position sizing on GMED should anchor to the underlying notional of $76.44 per share and to the trader's directional view on GMED stock.
GMED collar setup
The GMED 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 GMED near $76.44, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GMED 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 GMED shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $76.44 | long |
| Sell 1 | Call | $80.00 | $1.65 |
| Buy 1 | Put | $72.50 | $1.60 |
GMED collar risk and reward
- Net Premium / Debit
- -$7,639.00
- Max Profit (per contract)
- $361.00
- Max Loss (per contract)
- -$389.00
- Breakeven(s)
- $76.39
- Risk / Reward Ratio
- 0.928
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.
GMED collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GMED. 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% | -$389.00 |
| $16.91 | -77.9% | -$389.00 |
| $33.81 | -55.8% | -$389.00 |
| $50.71 | -33.7% | -$389.00 |
| $67.61 | -11.6% | -$389.00 |
| $84.51 | +10.6% | +$361.00 |
| $101.41 | +32.7% | +$361.00 |
| $118.31 | +54.8% | +$361.00 |
| $135.21 | +76.9% | +$361.00 |
| $152.11 | +99.0% | +$361.00 |
When traders use collar on GMED
Collars on GMED hedge an existing long GMED 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.
GMED thesis for this collar
The market-implied 1-standard-deviation range for GMED extends from approximately $69.25 on the downside to $83.63 on the upside. A GMED collar hedges an existing long GMED 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 GMED IV rank near 16.68% 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 GMED at 32.80%. As a Healthcare name, GMED options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GMED-specific events.
GMED 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. GMED positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GMED alongside the broader basket even when GMED-specific fundamentals are unchanged. Always rebuild the position from current GMED chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GMED?
- A collar on GMED is the collar strategy applied to GMED (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 GMED stock trading near $76.44, the strikes shown on this page are snapped to the nearest listed GMED chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GMED 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 GMED collar priced from the end-of-day chain at a 30-day expiry (ATM IV 32.80%), the computed maximum profit is $361.00 per contract and the computed maximum loss is -$389.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GMED collar?
- The breakeven for the GMED collar priced on this page is roughly $76.39 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 GMED market-implied 1-standard-deviation expected move is approximately 9.40%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GMED?
- Collars on GMED hedge an existing long GMED 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 GMED implied volatility affect this collar?
- GMED ATM IV is at 32.80% with IV rank near 16.68%, 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.