GRCE Collar Strategy
GRCE (Grace Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Grace Therapeutics, Inc. engages in the development and commercialization of pharmaceutical products for rare and orphan diseases in Canada. The company's lead product candidate is the GTX-104, an intravenous infusion to treat subarachnoid hemorrhage. It also develops GTX-102, an oral mucosal betamethasone spray for the treatment of ataxia-telangiectasia; and GTX-101, a topical bioadhesive film-forming bupivacaine spray for postherpetic neuralgia. The company was formerly known as Acasti Pharma Inc. and changed its name to Grace Therapeutics, Inc. in October 2024. The company was incorporated in 2002 and is headquartered in Princeton, New Jersey.
GRCE (Grace Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $34.8M, a beta of 0.32 versus the broader market, a 52-week range of 1.79-5.18, average daily share volume of 785K, a public-listing history dating back to 2012, approximately 4 full-time employees. These structural characteristics shape how GRCE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.32 indicates GRCE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on GRCE?
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 GRCE snapshot
As of May 15, 2026, spot at $2.19, ATM IV 102.30%, expected move 29.33%. The collar on GRCE 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 GRCE specifically: IV rank is unavailable in the current snapshot, so regime-based timing for GRCE is inferred from ATM IV at 102.30% alone, with a market-implied 1-standard-deviation move of approximately 29.33% (roughly $0.64 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 GRCE expiries trade a higher absolute premium for lower per-day decay. Position sizing on GRCE should anchor to the underlying notional of $2.19 per share and to the trader's directional view on GRCE stock.
GRCE collar setup
The GRCE 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 GRCE near $2.19, the first option leg uses a $2.30 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GRCE 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 GRCE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.19 | long |
| Sell 1 | Call | $2.30 | N/A |
| Buy 1 | Put | $2.08 | N/A |
GRCE 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.
GRCE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GRCE. 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 GRCE
Collars on GRCE hedge an existing long GRCE 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.
GRCE thesis for this collar
The market-implied 1-standard-deviation range for GRCE extends from approximately $1.55 on the downside to $2.83 on the upside. A GRCE collar hedges an existing long GRCE 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. As a Healthcare name, GRCE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GRCE-specific events.
GRCE 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. GRCE positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GRCE alongside the broader basket even when GRCE-specific fundamentals are unchanged. Always rebuild the position from current GRCE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GRCE?
- A collar on GRCE is the collar strategy applied to GRCE (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 GRCE stock trading near $2.19, the strikes shown on this page are snapped to the nearest listed GRCE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GRCE 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 GRCE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 102.30%), 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 GRCE collar?
- The breakeven for the GRCE 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 GRCE market-implied 1-standard-deviation expected move is approximately 29.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GRCE?
- Collars on GRCE hedge an existing long GRCE 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 GRCE implied volatility affect this collar?
- Current GRCE ATM IV is 102.30%; IV rank context is unavailable in the current snapshot.