IRIX Collar Strategy
IRIX (IRIDEX Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
IRIDEX Corporation is a medical technology firm specializing in ophthalmology. They develop and supply advanced therapeutic laser systems, various delivery instruments, and essential consumable tools designed to address vision-threatening ocular conditions. Their product portfolio includes several laser consoles, each tailored for specific eye conditions. The Cyclo G6 system is specifically engineered for glaucoma treatment. For ailments like diabetic macular edema and other retinal pathologies, IRIDEX provides the IQ 532 and IQ 577 laser photocoagulation systems. Furthermore, the OcuLight series, encompassing models such as TX, SL, SLx, GL, and GLx, offers solutions for managing severe retinal issues like proliferative diabetic retinopathy, macular holes, and retinal tears or detachments.
IRIX (IRIDEX Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $19.7M, a beta of 0.66 versus the broader market, a 52-week range of 0.87-1.65, average daily share volume of 263K, a public-listing history dating back to 1996, approximately 93 full-time employees. These structural characteristics shape how IRIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates IRIX 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 IRIX?
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 IRIX snapshot
As of June 30, 2026, spot at $1.15, ATM IV 20.40%, IV rank 0.85%, expected move 5.85%. The collar on IRIX 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 IRIX specifically: IV regime affects collar pricing on both sides; compressed IRIX IV at 20.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.85% (roughly $0.07 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 IRIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRIX should anchor to the underlying notional of $1.15 per share and to the trader's directional view on IRIX stock.
IRIX collar setup
The IRIX 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 IRIX near $1.15, the first option leg uses a $1.21 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRIX 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 IRIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.15 | long |
| Sell 1 | Call | $1.21 | N/A |
| Buy 1 | Put | $1.09 | N/A |
IRIX 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.
IRIX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IRIX. 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 IRIX
Collars on IRIX hedge an existing long IRIX 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.
IRIX thesis for this collar
The market-implied 1-standard-deviation range for IRIX extends from approximately $1.08 on the downside to $1.22 on the upside. A IRIX collar hedges an existing long IRIX 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 IRIX IV rank near 0.85% 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 IRIX at 20.40%. As a Healthcare name, IRIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRIX-specific events.
IRIX 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. IRIX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRIX alongside the broader basket even when IRIX-specific fundamentals are unchanged. Always rebuild the position from current IRIX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IRIX?
- A collar on IRIX is the collar strategy applied to IRIX (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 IRIX stock trading near $1.15, the strikes shown on this page are snapped to the nearest listed IRIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRIX 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 IRIX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.40%), 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 IRIX collar?
- The breakeven for the IRIX 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 IRIX market-implied 1-standard-deviation expected move is approximately 5.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IRIX?
- Collars on IRIX hedge an existing long IRIX 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 IRIX implied volatility affect this collar?
- IRIX ATM IV is at 20.40% with IV rank near 0.85%, 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.