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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is $396.50 per contract and the computed maximum loss is -$353.50 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 $86.04 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GMED market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.43%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GMED implied volatility affect this collar?

GMED ATM IV is at 29.40% with IV rank near 4.19%, 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.

GMED Collar Strategy

GMED (Globus Medical, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NYSE.

Globus Medical, Inc. is a global medical technology company dedicated to inventing, developing, and marketing a diverse range of healthcare solutions. Their primary focus is on addressing musculoskeletal disorders for patients worldwide. Their extensive portfolio includes a variety of spinal products. These encompass traditional fusion implants like pedicle screw and rod systems, plating systems, intervertebral spacers, and corpectomy devices, all designed to treat conditions such as degenerative diseases, deformities, tumors, and trauma. Furthermore, they offer advanced motion preservation technologies, including dynamic stabilization, total disc replacement, and interspinous distraction devices. The company also provides interventional pain management options for vertebral compression fractures, alongside a selection of regenerative biologic products such as allografts and synthetic alternatives.

GMED (Globus Medical, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $11.55B, a trailing P/E of 21.66, a beta of 0.95 versus the broader market, a 52-week range of 54.15-101.4, average daily share volume of 1.7M, a public-listing history dating back to 2012, approximately 6K 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 0.95 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.

GMED snapshot

As of August 14, 2026, spot at $85.91, ATM IV 29.40%, IV rank 4.19%, expected move 8.43%. The collar on GMED below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on GMED specifically: IV regime affects collar pricing on both sides; compressed GMED IV at 29.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.43% (roughly $7.24 on the underlying). The 35-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 $85.91 per share and to the trader's directional view on GMED stock.

GMED collar setup

The GMED collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GMED at $85.91 on that close, the first option leg uses a $90.00 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 35-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	$85.91	long
Sell 1	Call	$90.00	$1.70
Buy 1	Put	$82.50	$1.83

GMED collar risk and reward

Net Premium / Debit: -$8,603.50
Max Profit (per contract): $396.50
Max Loss (per contract): -$353.50
Breakeven(s): $86.04
Risk / Reward Ratio: 1.122

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$353.50
$19.00	-77.9%	-$353.50
$38.00	-55.8%	-$353.50
$56.99	-33.7%	-$353.50
$75.99	-11.6%	-$353.50
$94.98	+10.6%	+$396.50
$113.97	+32.7%	+$396.50
$132.97	+54.8%	+$396.50
$151.96	+76.9%	+$396.50
$170.96	+99.0%	+$396.50

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 $78.67 on the downside to $93.15 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 4.19% 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 GMED at 29.40%. 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 at $85.91 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed GMED chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 29.40%), the computed maximum profit is $396.50 per contract and the computed maximum loss is -$353.50 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 $86.04 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The GMED market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.43%; 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 29.40% with IV rank near 4.19%, 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.