KURA Collar Strategy
KURA (Kura Oncology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Kura Oncology, Inc., a clinical-stage biopharmaceutical company, develops medicines for the treatment of cancer. The company’s first commercial product, KOMZIFTI (ziftomenib), a potent, selective, reversible and oral small molecule menin inhibitor; Darlifarnib, a Phase 1 first-in-human FIT-001 trial which includes multiple cohorts to evaluate darlifarnib in combination with other targeted therapies in large solid tumor indications; and KO-7246, a next-generation menin inhibitor, for use in diabetes and cardiometabolic disorders and additional next-generation menin inhibitors for use in combination with other therapies in solid tumors. The company is headquartered in San Diego, California.
KURA (Kura Oncology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $967.6M, a beta of 0.36 versus the broader market, a 52-week range of 5.45-12.49, average daily share volume of 1.7M, a public-listing history dating back to 2015, approximately 260 full-time employees. These structural characteristics shape how KURA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.36 indicates KURA 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 KURA?
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 KURA snapshot
As of June 30, 2026, spot at $10.99, ATM IV 68.20%, IV rank 8.67%, expected move 19.55%. The collar on KURA 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 KURA specifically: IV regime affects collar pricing on both sides; compressed KURA IV at 68.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.55% (roughly $2.15 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 KURA expiries trade a higher absolute premium for lower per-day decay. Position sizing on KURA should anchor to the underlying notional of $10.99 per share and to the trader's directional view on KURA stock.
KURA collar setup
The KURA 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 KURA near $10.99, the first option leg uses a $12.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KURA 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 KURA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.99 | long |
| Sell 1 | Call | $12.00 | $0.28 |
| Buy 1 | Put | $10.00 | $0.25 |
KURA collar risk and reward
- Net Premium / Debit
- -$1,096.50
- Max Profit (per contract)
- $103.50
- Max Loss (per contract)
- -$96.50
- Breakeven(s)
- $10.97
- Risk / Reward Ratio
- 1.073
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.
KURA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on KURA. 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 | -99.9% | -$96.50 |
| $2.44 | -77.8% | -$96.50 |
| $4.87 | -55.7% | -$96.50 |
| $7.30 | -33.6% | -$96.50 |
| $9.73 | -11.5% | -$96.50 |
| $12.15 | +10.6% | +$103.50 |
| $14.58 | +32.7% | +$103.50 |
| $17.01 | +54.8% | +$103.50 |
| $19.44 | +76.9% | +$103.50 |
| $21.87 | +99.0% | +$103.50 |
When traders use collar on KURA
Collars on KURA hedge an existing long KURA 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.
KURA thesis for this collar
The market-implied 1-standard-deviation range for KURA extends from approximately $8.84 on the downside to $13.14 on the upside. A KURA collar hedges an existing long KURA 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 KURA IV rank near 8.67% 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 KURA at 68.20%. As a Healthcare name, KURA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KURA-specific events.
KURA 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. KURA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KURA alongside the broader basket even when KURA-specific fundamentals are unchanged. Always rebuild the position from current KURA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on KURA?
- A collar on KURA is the collar strategy applied to KURA (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 KURA stock trading near $10.99, the strikes shown on this page are snapped to the nearest listed KURA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KURA 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 KURA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 68.20%), the computed maximum profit is $103.50 per contract and the computed maximum loss is -$96.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KURA collar?
- The breakeven for the KURA collar priced on this page is roughly $10.97 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 KURA market-implied 1-standard-deviation expected move is approximately 19.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on KURA?
- Collars on KURA hedge an existing long KURA 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 KURA implied volatility affect this collar?
- KURA ATM IV is at 68.20% with IV rank near 8.67%, 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.