HRTX Collar Strategy
HRTX (Heron Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Heron Therapeutics, Inc. is a biotechnology firm dedicated to creating innovative therapies for critical patient requirements. The company leverages its proprietary Biochronomer drug delivery platform, an advanced system that enables the controlled release of various short-acting pharmacological agents. This technology ensures therapeutic concentrations are maintained for periods ranging from days to weeks following just a single administration. Among its commercialized products is SUSTOL (granisetron), an extended-release injectable designed to prevent both immediate and delayed nausea and vomiting triggered by moderately emetogenic chemotherapy, or specific anthracycline and cyclophosphamide combination therapies. Additionally, Heron markets CINVANTI, an intravenous formulation of aprepitant. CINVANTI, which acts as a substance P/neurokinin-1 receptor antagonist, is indicated for the prevention of acute and delayed chemotherapy-induced nausea and vomiting in patients undergoing highly or moderately emetogenic cancer chemotherapy.
HRTX (Heron Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $67.9M, a beta of 1.57 versus the broader market, a 52-week range of 0.38-2.3, average daily share volume of 3.0M, a public-listing history dating back to 1987, approximately 122 full-time employees. These structural characteristics shape how HRTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.57 indicates HRTX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on HRTX?
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 HRTX snapshot
As of June 30, 2026, spot at $0.42, ATM IV 226.20%, IV rank 47.50%, expected move 64.85%. The collar on HRTX 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 HRTX specifically: IV regime affects collar pricing on both sides; mid-range HRTX IV at 226.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 64.85% (roughly $0.27 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 HRTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRTX should anchor to the underlying notional of $0.42 per share and to the trader's directional view on HRTX stock.
HRTX collar setup
The HRTX 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 HRTX near $0.42, the first option leg uses a $0.44 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HRTX 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 HRTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $0.42 | long |
| Sell 1 | Call | $0.44 | N/A |
| Buy 1 | Put | $0.40 | N/A |
HRTX 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.
HRTX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HRTX. 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 HRTX
Collars on HRTX hedge an existing long HRTX 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.
HRTX thesis for this collar
The market-implied 1-standard-deviation range for HRTX extends from approximately $0.15 on the downside to $0.69 on the upside. A HRTX collar hedges an existing long HRTX 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 HRTX IV rank near 47.50% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HRTX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, HRTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRTX-specific events.
HRTX 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. HRTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRTX alongside the broader basket even when HRTX-specific fundamentals are unchanged. Always rebuild the position from current HRTX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HRTX?
- A collar on HRTX is the collar strategy applied to HRTX (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 HRTX stock trading near $0.42, the strikes shown on this page are snapped to the nearest listed HRTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HRTX 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 HRTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 226.20%), 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 HRTX collar?
- The breakeven for the HRTX 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 HRTX market-implied 1-standard-deviation expected move is approximately 64.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HRTX?
- Collars on HRTX hedge an existing long HRTX 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 HRTX implied volatility affect this collar?
- HRTX ATM IV is at 226.20% with IV rank near 47.50%, 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.