IRTC Collar Strategy
IRTC (iRhythm Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. It offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. The company's Zio XT and AT monitors, a single-use, wire-free, and wearable patch-based biosensors, records patient's heartbeats and ECG data. It has a development collaboration agreement with Verily Life Sciences LLC to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
IRTC (iRhythm Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $3.77B, a beta of 1.33 versus the broader market, a 52-week range of 112.31-212, average daily share volume of 587K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how IRTC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates IRTC 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 IRTC?
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 IRTC snapshot
As of May 15, 2026, spot at $114.62, ATM IV 48.60%, IV rank 36.37%, expected move 13.93%. The collar on IRTC 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 IRTC specifically: IV regime affects collar pricing on both sides; mid-range IRTC IV at 48.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.93% (roughly $15.97 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 IRTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRTC should anchor to the underlying notional of $114.62 per share and to the trader's directional view on IRTC stock.
IRTC collar setup
The IRTC 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 IRTC near $114.62, 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 IRTC 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 IRTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $114.62 | long |
| Sell 1 | Call | $120.00 | $4.95 |
| Buy 1 | Put | $110.00 | $4.70 |
IRTC collar risk and reward
- Net Premium / Debit
- -$11,437.00
- Max Profit (per contract)
- $563.00
- Max Loss (per contract)
- -$437.00
- Breakeven(s)
- $114.37
- Risk / Reward Ratio
- 1.288
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.
IRTC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IRTC. 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% | -$437.00 |
| $25.35 | -77.9% | -$437.00 |
| $50.69 | -55.8% | -$437.00 |
| $76.04 | -33.7% | -$437.00 |
| $101.38 | -11.6% | -$437.00 |
| $126.72 | +10.6% | +$563.00 |
| $152.06 | +32.7% | +$563.00 |
| $177.40 | +54.8% | +$563.00 |
| $202.75 | +76.9% | +$563.00 |
| $228.09 | +99.0% | +$563.00 |
When traders use collar on IRTC
Collars on IRTC hedge an existing long IRTC 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.
IRTC thesis for this collar
The market-implied 1-standard-deviation range for IRTC extends from approximately $98.65 on the downside to $130.59 on the upside. A IRTC collar hedges an existing long IRTC 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 IRTC IV rank near 36.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on IRTC should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IRTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRTC-specific events.
IRTC 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. IRTC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRTC alongside the broader basket even when IRTC-specific fundamentals are unchanged. Always rebuild the position from current IRTC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IRTC?
- A collar on IRTC is the collar strategy applied to IRTC (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 IRTC stock trading near $114.62, the strikes shown on this page are snapped to the nearest listed IRTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRTC 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 IRTC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.60%), the computed maximum profit is $563.00 per contract and the computed maximum loss is -$437.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRTC collar?
- The breakeven for the IRTC collar priced on this page is roughly $114.37 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 IRTC market-implied 1-standard-deviation expected move is approximately 13.93%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IRTC?
- Collars on IRTC hedge an existing long IRTC 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 IRTC implied volatility affect this collar?
- IRTC ATM IV is at 48.60% with IV rank near 36.37%, 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.