How are HROW 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 HROW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 57.80%), the computed maximum profit is $221.50 per contract and the computed maximum loss is -$178.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HROW collar?

The breakeven for the HROW collar priced on this page is roughly $41.79 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 HROW market-implied 1-standard-deviation expected move is approximately 16.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HROW implied volatility affect this collar?

HROW ATM IV is at 57.80% with IV rank near 14.27%, 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.

HROW Collar Strategy

HROW (Harrow Health, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.

Harrow Health, Inc. operates as a healthcare enterprise with a specialized focus on ophthalmic solutions. The company's portfolio includes ImprimisRx, a business dedicated to ophthalmology outsourcing and pharmaceutical compounding, as well as DEXYCU, a product utilized for managing post-operative inflammation. Beyond its direct offerings, Harrow Health maintains equity investments in several pharmaceutical ventures. These encompass Surface Ophthalmics, Inc., a clinical-stage firm actively developing and commercializing therapeutic agents for ocular surface diseases; Melt Pharmaceuticals, Inc., another clinical-stage entity concentrating on proprietary non-intravenous sedation and anesthesia treatments for various medical procedures conducted in hospital, outpatient, and office environments; and Eton Pharmaceuticals, Inc., a commercial-stage company involved in the creation and market launch of drug products. Moreover, Harrow Health holds royalty interests in four investigational drug candidates currently being advanced by Surface Ophthalmics, Inc. and Melt Pharmaceuticals, Inc. The company, initially incorporated in 2006 and based in San Diego, California, underwent a name change from Imprimis Pharmaceuticals, Inc. to Harrow Health, Inc. in December 2018.

HROW (Harrow Health, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $1.57B, a beta of 0.28 versus the broader market, a 52-week range of 28.54-54.85, average daily share volume of 774K, a public-listing history dating back to 2007, approximately 382 full-time employees. These structural characteristics shape how HROW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.28 indicates HROW 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 HROW?

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 HROW snapshot

As of June 30, 2026, spot at $42.36, ATM IV 57.80%, IV rank 14.27%, expected move 16.57%. The collar on HROW 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 HROW specifically: IV regime affects collar pricing on both sides; compressed HROW IV at 57.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.57% (roughly $7.02 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 HROW expiries trade a higher absolute premium for lower per-day decay. Position sizing on HROW should anchor to the underlying notional of $42.36 per share and to the trader's directional view on HROW stock.

HROW collar setup

The HROW 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 HROW near $42.36, the first option leg uses a $44.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HROW 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 HROW shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$42.36	long
Sell 1	Call	$44.00	$1.80
Buy 1	Put	$40.00	$1.23

HROW collar risk and reward

Net Premium / Debit: -$4,178.50
Max Profit (per contract): $221.50
Max Loss (per contract): -$178.50
Breakeven(s): $41.79
Risk / Reward Ratio: 1.241

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.

HROW collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HROW. 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%	-$178.50
$9.37	-77.9%	-$178.50
$18.74	-55.8%	-$178.50
$28.10	-33.7%	-$178.50
$37.47	-11.5%	-$178.50
$46.83	+10.6%	+$221.50
$56.20	+32.7%	+$221.50
$65.56	+54.8%	+$221.50
$74.93	+76.9%	+$221.50
$84.29	+99.0%	+$221.50

When traders use collar on HROW

Collars on HROW hedge an existing long HROW 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.

HROW thesis for this collar

The market-implied 1-standard-deviation range for HROW extends from approximately $35.34 on the downside to $49.38 on the upside. A HROW collar hedges an existing long HROW 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 HROW IV rank near 14.27% 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 HROW at 57.80%. As a Healthcare name, HROW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HROW-specific events.

HROW 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. HROW positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HROW alongside the broader basket even when HROW-specific fundamentals are unchanged. Always rebuild the position from current HROW chain quotes before placing a trade.

Frequently asked questions

What is a collar on HROW?: A collar on HROW is the collar strategy applied to HROW (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 HROW stock trading near $42.36, the strikes shown on this page are snapped to the nearest listed HROW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HROW 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 HROW collar priced from the end-of-day chain at a 30-day expiry (ATM IV 57.80%), the computed maximum profit is $221.50 per contract and the computed maximum loss is -$178.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HROW collar?: The breakeven for the HROW collar priced on this page is roughly $41.79 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 HROW market-implied 1-standard-deviation expected move is approximately 16.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HROW?: Collars on HROW hedge an existing long HROW 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 HROW implied volatility affect this collar?: HROW ATM IV is at 57.80% with IV rank near 14.27%, 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.