KRMD Collar Strategy
KRMD (KORU Medical Systems, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
KORU Medical Systems, Inc. designs, manufactures, and markets portable medical devices primarily for the ambulatory infusion market in the United States and internationally. It offers mechanical infusion product comprising the FREEDOM infusion systems that include the FREEDOM60 syringe driver, the FreedomEdge syringe driver, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing. The company also provides education and training materials to clinicians, patients, and patient advocates. It sells its products through direct sales and medical device distributors, as well as online. KORU Medical Systems, Inc. was incorporated in 1980 and is headquartered in Chester, New York.
KRMD (KORU Medical Systems, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $176.8M, a beta of 0.42 versus the broader market, a 52-week range of 2.625-6.608, average daily share volume of 154K, a public-listing history dating back to 1994, approximately 80 full-time employees. These structural characteristics shape how KRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates KRMD 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 KRMD?
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 KRMD snapshot
As of May 15, 2026, spot at $3.92, ATM IV 24.10%, IV rank 0.78%, expected move 6.91%. The collar on KRMD 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 KRMD specifically: IV regime affects collar pricing on both sides; compressed KRMD IV at 24.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $0.27 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 KRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRMD should anchor to the underlying notional of $3.92 per share and to the trader's directional view on KRMD stock.
KRMD collar setup
The KRMD 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 KRMD near $3.92, the first option leg uses a $4.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRMD 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 KRMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.92 | long |
| Sell 1 | Call | $4.12 | N/A |
| Buy 1 | Put | $3.72 | N/A |
KRMD 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.
KRMD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KRMD. 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 KRMD
Collars on KRMD hedge an existing long KRMD 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.
KRMD thesis for this collar
The market-implied 1-standard-deviation range for KRMD extends from approximately $3.65 on the downside to $4.19 on the upside. A KRMD collar hedges an existing long KRMD 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 KRMD IV rank near 0.78% 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 KRMD at 24.10%. As a Healthcare name, KRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRMD-specific events.
KRMD 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. KRMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRMD alongside the broader basket even when KRMD-specific fundamentals are unchanged. Always rebuild the position from current KRMD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KRMD?
- A collar on KRMD is the collar strategy applied to KRMD (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 KRMD stock trading near $3.92, the strikes shown on this page are snapped to the nearest listed KRMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRMD 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 KRMD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), 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 KRMD collar?
- The breakeven for the KRMD 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 KRMD market-implied 1-standard-deviation expected move is approximately 6.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KRMD?
- Collars on KRMD hedge an existing long KRMD 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 KRMD implied volatility affect this collar?
- KRMD ATM IV is at 24.10% with IV rank near 0.78%, 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.