ICLR Collar Strategy
ICLR (ICON Public Limited Company), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
ICON Public Limited Company, a clinical research organization, provides outsourced development and commercialization services in Ireland, rest of Europe, the United States, and internationally. The company specializes in the strategic development, management, and analysis of programs that support various stages of the clinical development process from compound selection to Phase I-IV clinical studies. It offers clinical development services, including early development, patient recruitment and retention, strategy and analytics, late phase research, data and technology solution, and consulting and analytics services. The company's clinical development services also comprise medical imaging, clinical research and laboratory services, project management, site monitoring and management services, data management, biostatistics and programming, medical writing and publishing, medical affair, endpoint adjudication/data monitoring committees, pharmacovigilance, interactive response technologies, clinical supplies management, strategic regulatory, medical communication, and consulting and advisory services. It serves pharmaceutical, biotechnology, and medical device industries, as well as government and public health organizations. The company was incorporated in 1990 and is headquartered in Dublin, Ireland.
ICLR (ICON Public Limited Company) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $8.96B, a trailing P/E of 15.15, a beta of 1.23 versus the broader market, a 52-week range of 66.57-211, average daily share volume of 1.3M, a public-listing history dating back to 1998, approximately 41K full-time employees. These structural characteristics shape how ICLR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places ICLR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on ICLR?
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 ICLR snapshot
As of May 15, 2026, spot at $115.55, ATM IV 69.00%, IV rank 52.08%, expected move 19.78%. The collar on ICLR 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 ICLR specifically: IV regime affects collar pricing on both sides; mid-range ICLR IV at 69.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.78% (roughly $22.86 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 ICLR expiries trade a higher absolute premium for lower per-day decay. Position sizing on ICLR should anchor to the underlying notional of $115.55 per share and to the trader's directional view on ICLR stock.
ICLR collar setup
The ICLR 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 ICLR near $115.55, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ICLR 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 ICLR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $115.55 | long |
| Sell 1 | Call | $120.00 | $8.10 |
| Buy 1 | Put | $110.00 | $6.25 |
ICLR collar risk and reward
- Net Premium / Debit
- -$11,370.00
- Max Profit (per contract)
- $630.00
- Max Loss (per contract)
- -$370.00
- Breakeven(s)
- $113.70
- Risk / Reward Ratio
- 1.703
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.
ICLR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ICLR. 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% | -$370.00 |
| $25.56 | -77.9% | -$370.00 |
| $51.11 | -55.8% | -$370.00 |
| $76.65 | -33.7% | -$370.00 |
| $102.20 | -11.6% | -$370.00 |
| $127.75 | +10.6% | +$630.00 |
| $153.30 | +32.7% | +$630.00 |
| $178.84 | +54.8% | +$630.00 |
| $204.39 | +76.9% | +$630.00 |
| $229.94 | +99.0% | +$630.00 |
When traders use collar on ICLR
Collars on ICLR hedge an existing long ICLR 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.
ICLR thesis for this collar
The market-implied 1-standard-deviation range for ICLR extends from approximately $92.69 on the downside to $138.41 on the upside. A ICLR collar hedges an existing long ICLR 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 ICLR IV rank near 52.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ICLR should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ICLR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ICLR-specific events.
ICLR 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. ICLR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ICLR alongside the broader basket even when ICLR-specific fundamentals are unchanged. Always rebuild the position from current ICLR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ICLR?
- A collar on ICLR is the collar strategy applied to ICLR (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 ICLR stock trading near $115.55, the strikes shown on this page are snapped to the nearest listed ICLR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ICLR 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 ICLR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 69.00%), the computed maximum profit is $630.00 per contract and the computed maximum loss is -$370.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ICLR collar?
- The breakeven for the ICLR collar priced on this page is roughly $113.70 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 ICLR market-implied 1-standard-deviation expected move is approximately 19.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ICLR?
- Collars on ICLR hedge an existing long ICLR 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 ICLR implied volatility affect this collar?
- ICLR ATM IV is at 69.00% with IV rank near 52.08%, 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.