IRMD Collar Strategy
IRMD (IRadimed Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
IRADIMED CORPORATION develops, manufactures, markets, and distributes magnetic resonance imaging (MRI) compatible medical devices, and related accessories and services in the United States and internationally. It offers MRidium MRI compatible intravenous (IV) infusion pump system with associated disposable IV tubing sets; and MRI compatible patient vital signs monitoring system. The company also provides non-magnetic IV poles, wireless remote displays/controls, side car pump modules, dose error reduction systems, and SpO2 monitoring with sensors and accessories. It serves hospitals, acute care facilities, and outpatient imaging centers. The company sells its products through direct field sales representatives, regional sales directors, clinical support representatives, and independent distributors. IRADIMED CORPORATION was incorporated in 1992 and is headquartered in Winter Springs, Florida.
IRMD (IRadimed Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $1.09B, a trailing P/E of 46.17, a beta of 0.91 versus the broader market, a 52-week range of 50.88-107.9, average daily share volume of 92K, a public-listing history dating back to 2014, approximately 160 full-time employees. These structural characteristics shape how IRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places IRMD roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 46.17 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. IRMD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IRMD?
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 IRMD snapshot
As of May 15, 2026, spot at $86.40, ATM IV 41.50%, IV rank 4.98%, expected move 11.90%. The collar on IRMD 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 63-day expiry.
Why this collar structure on IRMD specifically: IV regime affects collar pricing on both sides; compressed IRMD IV at 41.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.90% (roughly $10.28 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRMD should anchor to the underlying notional of $86.40 per share and to the trader's directional view on IRMD stock.
IRMD collar setup
The IRMD 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 IRMD near $86.40, the first option leg uses a $89.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRMD chain at a 63-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 IRMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $86.40 | long |
| Sell 1 | Call | $89.50 | $4.55 |
| Buy 1 | Put | $84.50 | $4.25 |
IRMD collar risk and reward
- Net Premium / Debit
- -$8,610.00
- Max Profit (per contract)
- $340.00
- Max Loss (per contract)
- -$160.00
- Breakeven(s)
- $86.10
- Risk / Reward Ratio
- 2.125
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.
IRMD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IRMD. 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% | -$160.00 |
| $19.11 | -77.9% | -$160.00 |
| $38.21 | -55.8% | -$160.00 |
| $57.32 | -33.7% | -$160.00 |
| $76.42 | -11.6% | -$160.00 |
| $95.52 | +10.6% | +$340.00 |
| $114.62 | +32.7% | +$340.00 |
| $133.73 | +54.8% | +$340.00 |
| $152.83 | +76.9% | +$340.00 |
| $171.93 | +99.0% | +$340.00 |
When traders use collar on IRMD
Collars on IRMD hedge an existing long IRMD 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.
IRMD thesis for this collar
The market-implied 1-standard-deviation range for IRMD extends from approximately $76.12 on the downside to $96.68 on the upside. A IRMD collar hedges an existing long IRMD 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 IRMD IV rank near 4.98% 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 IRMD at 41.50%. As a Healthcare name, IRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRMD-specific events.
IRMD 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. IRMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRMD alongside the broader basket even when IRMD-specific fundamentals are unchanged. Always rebuild the position from current IRMD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IRMD?
- A collar on IRMD is the collar strategy applied to IRMD (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 IRMD stock trading near $86.40, the strikes shown on this page are snapped to the nearest listed IRMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRMD 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 IRMD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 41.50%), the computed maximum profit is $340.00 per contract and the computed maximum loss is -$160.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRMD collar?
- The breakeven for the IRMD collar priced on this page is roughly $86.10 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 IRMD market-implied 1-standard-deviation expected move is approximately 11.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IRMD?
- Collars on IRMD hedge an existing long IRMD 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 IRMD implied volatility affect this collar?
- IRMD ATM IV is at 41.50% with IV rank near 4.98%, 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.