ISRG Collar Strategy
ISRG (Intuitive Surgical, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Intuitive Surgical, Inc. is a leading medical technology firm dedicated to advancing patient care by developing, producing, and commercializing sophisticated tools. These innovations empower medical professionals to deliver superior, accessible, and less-invasive treatment options to patients both within the United States and across international markets. Its flagship offering, the da Vinci Surgical System, facilitates intricate operations through a minimally disruptive approach. Expanding beyond surgical applications, the company also provides the Ion endoluminal system, designed for diagnostic interventions like minimally invasive lung biopsies. Complementing its primary systems, Intuitive Surgical supplies a comprehensive array of instruments, including stapling tools, energy devices, and essential core components. Furthermore, it offers structured training programs to ensure proficient use of its technology, alongside extensive customer support services encompassing installation, repairs, and ongoing maintenance.
ISRG (Intuitive Surgical, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $143.18B, a trailing P/E of 48.16, a beta of 1.45 versus the broader market, a 52-week range of 396.68-603.88, average daily share volume of 2.3M, a public-listing history dating back to 2000, approximately 16K full-time employees. These structural characteristics shape how ISRG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates ISRG has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 48.16 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 ISRG?
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 ISRG snapshot
As of June 30, 2026, spot at $400.00, ATM IV 42.00%, IV rank 74.87%, expected move 12.04%. The collar on ISRG 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 31-day expiry.
Why this collar structure on ISRG specifically: IV regime affects collar pricing on both sides; elevated ISRG IV at 42.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.04% (roughly $48.17 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ISRG expiries trade a higher absolute premium for lower per-day decay. Position sizing on ISRG should anchor to the underlying notional of $400.00 per share and to the trader's directional view on ISRG stock.
ISRG collar setup
The ISRG 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 ISRG near $400.00, the first option leg uses a $420.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ISRG chain at a 31-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 ISRG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $400.00 | long |
| Sell 1 | Call | $420.00 | $13.10 |
| Buy 1 | Put | $380.00 | $8.60 |
ISRG collar risk and reward
- Net Premium / Debit
- -$39,550.00
- Max Profit (per contract)
- $2,450.00
- Max Loss (per contract)
- -$1,550.00
- Breakeven(s)
- $395.50
- Risk / Reward Ratio
- 1.581
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.
ISRG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ISRG. 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% | -$1,550.00 |
| $88.45 | -77.9% | -$1,550.00 |
| $176.89 | -55.8% | -$1,550.00 |
| $265.33 | -33.7% | -$1,550.00 |
| $353.77 | -11.6% | -$1,550.00 |
| $442.22 | +10.6% | +$2,450.00 |
| $530.66 | +32.7% | +$2,450.00 |
| $619.10 | +54.8% | +$2,450.00 |
| $707.54 | +76.9% | +$2,450.00 |
| $795.98 | +99.0% | +$2,450.00 |
When traders use collar on ISRG
Collars on ISRG hedge an existing long ISRG 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.
ISRG thesis for this collar
The market-implied 1-standard-deviation range for ISRG extends from approximately $351.83 on the downside to $448.17 on the upside. A ISRG collar hedges an existing long ISRG 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 ISRG IV rank near 74.87% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on ISRG at 42.00%. As a Healthcare name, ISRG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ISRG-specific events.
ISRG 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. ISRG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ISRG alongside the broader basket even when ISRG-specific fundamentals are unchanged. Always rebuild the position from current ISRG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ISRG?
- A collar on ISRG is the collar strategy applied to ISRG (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 ISRG stock trading near $400.00, the strikes shown on this page are snapped to the nearest listed ISRG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ISRG 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 ISRG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.00%), the computed maximum profit is $2,450.00 per contract and the computed maximum loss is -$1,550.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ISRG collar?
- The breakeven for the ISRG collar priced on this page is roughly $395.50 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 ISRG market-implied 1-standard-deviation expected move is approximately 12.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ISRG?
- Collars on ISRG hedge an existing long ISRG 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 ISRG implied volatility affect this collar?
- ISRG ATM IV is at 42.00% with IV rank near 74.87%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.