ICUI Collar Strategy
ICUI (ICU Medical, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
ICU Medical, Inc., together with its subsidiaries, develops, manufactures, and sells medical devices used in infusion therapy and critical care applications worldwide. The company's infusion therapy products include needlefree products under the MicroClave, MicroClave Clear, and NanoClave brands; Neutron catheter patency devices; SwabCap and SwabTip disinfecting caps; Tego hemodialysis connectors; ClearGuard HD, an antimicrobial barrier cap for hemodialysis catheters; and ChemoClave and ChemoLock closed system transfer devices, as well as Diana hazardous drug compounding system for the preparation of hazardous drugs. It also provides IV therapy and diluents, such as sodium chloride, dextrose, balanced electrolyte solutions, lactated ringer's, ringer's, mannitol, sodium chloride/dextrose, and sterile water; and irrigation comprising sodium chloride and sterile water irrigation, physiologic solutions, ringer's irrigation, acetic acid irrigation, glycine irrigation, sorbitol-mannitol irrigation, flexible containers, and pour bottle options. The company offers infusion pumps under the Plum 360 and LifeCare PCA brands; IV mediation safety software, including ICU Medical MedNet, an enterprise-class medication management platform that connects smart pumps to hospital's electronic health records, asset tracking systems, and alarm notification platforms; and related professional services. It also provides critical care products, such as Cogent 2-in-1 and CardioFlo hemodynamic monitoring systems; TDQ and OptiQ cardiac output monitoring catheters; TriOx venous oximetry catheters; Transpac blood pressure transducers; and SafeSet closed blood sampling and conservation systems. The company sells its products to acute care hospitals, wholesalers, ambulatory clinics, and alternate site facilities, including outpatient clinics, home health care providers, and long-term care facilities.
ICUI (ICU Medical, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $3.05B, a trailing P/E of 65.22, a beta of 0.74 versus the broader market, a 52-week range of 107-160.29, average daily share volume of 293K, a public-listing history dating back to 1992, approximately 15K full-time employees. These structural characteristics shape how ICUI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places ICUI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 65.22 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a collar on ICUI?
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 ICUI snapshot
As of May 15, 2026, spot at $119.44, ATM IV 38.30%, IV rank 10.56%, expected move 10.98%. The collar on ICUI 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 ICUI specifically: IV regime affects collar pricing on both sides; compressed ICUI IV at 38.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.98% (roughly $13.11 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 ICUI expiries trade a higher absolute premium for lower per-day decay. Position sizing on ICUI should anchor to the underlying notional of $119.44 per share and to the trader's directional view on ICUI stock.
ICUI collar setup
The ICUI 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 ICUI near $119.44, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ICUI 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 ICUI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $119.44 | long |
| Sell 1 | Call | $125.00 | $3.45 |
| Buy 1 | Put | $115.00 | $3.70 |
ICUI collar risk and reward
- Net Premium / Debit
- -$11,969.00
- Max Profit (per contract)
- $531.00
- Max Loss (per contract)
- -$469.00
- Breakeven(s)
- $119.69
- Risk / Reward Ratio
- 1.132
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.
ICUI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ICUI. 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% | -$469.00 |
| $26.42 | -77.9% | -$469.00 |
| $52.83 | -55.8% | -$469.00 |
| $79.23 | -33.7% | -$469.00 |
| $105.64 | -11.6% | -$469.00 |
| $132.05 | +10.6% | +$531.00 |
| $158.46 | +32.7% | +$531.00 |
| $184.86 | +54.8% | +$531.00 |
| $211.27 | +76.9% | +$531.00 |
| $237.68 | +99.0% | +$531.00 |
When traders use collar on ICUI
Collars on ICUI hedge an existing long ICUI 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.
ICUI thesis for this collar
The market-implied 1-standard-deviation range for ICUI extends from approximately $106.33 on the downside to $132.55 on the upside. A ICUI collar hedges an existing long ICUI 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 ICUI IV rank near 10.56% 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 ICUI at 38.30%. As a Healthcare name, ICUI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ICUI-specific events.
ICUI 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. ICUI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ICUI alongside the broader basket even when ICUI-specific fundamentals are unchanged. Always rebuild the position from current ICUI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ICUI?
- A collar on ICUI is the collar strategy applied to ICUI (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 ICUI stock trading near $119.44, the strikes shown on this page are snapped to the nearest listed ICUI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ICUI 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 ICUI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.30%), the computed maximum profit is $531.00 per contract and the computed maximum loss is -$469.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ICUI collar?
- The breakeven for the ICUI collar priced on this page is roughly $119.69 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 ICUI market-implied 1-standard-deviation expected move is approximately 10.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ICUI?
- Collars on ICUI hedge an existing long ICUI 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 ICUI implied volatility affect this collar?
- ICUI ATM IV is at 38.30% with IV rank near 10.56%, 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.