LUNG Collar Strategy
LUNG (Pulmonx Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Pulmonx Corporation is a biomedical technology firm dedicated to developing and commercializing advanced, less invasive devices for managing chronic obstructive pulmonary diseases. Its primary offering, the Zephyr Endobronchial Valve, is specifically engineered to treat bronchoscopic hyperinflation in adults afflicted with severe emphysema. Complementing its therapeutic solutions, the company also provides the Chartis Pulmonary Assessment System. This system features a specialized balloon catheter and console, fitted with flow and pressure sensors, which is instrumental in evaluating the presence of collateral ventilation in patients. Additionally, Pulmonx offers the StratX Lung Analysis Platform, a cloud-based service that conducts quantitative computed tomography (CT) analysis. This platform delivers vital data concerning emphysema destruction, fissure completeness, and lobar volume, thereby aiding clinicians in accurately identifying the most suitable target lobes for treatment with Zephyr Valves.
LUNG (Pulmonx Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $52.8M, a beta of 0.28 versus the broader market, a 52-week range of 1.13-3.88, average daily share volume of 428K, a public-listing history dating back to 2020, approximately 291 full-time employees. These structural characteristics shape how LUNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.28 indicates LUNG 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 LUNG?
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 LUNG snapshot
As of June 30, 2026, spot at $1.29, ATM IV 22.00%, IV rank 0.31%, expected move 6.31%. The collar on LUNG 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 LUNG specifically: IV regime affects collar pricing on both sides; compressed LUNG IV at 22.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.31% (roughly $0.08 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 LUNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on LUNG should anchor to the underlying notional of $1.29 per share and to the trader's directional view on LUNG stock.
LUNG collar setup
The LUNG 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 LUNG near $1.29, the first option leg uses a $1.35 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LUNG 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 LUNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.29 | long |
| Sell 1 | Call | $1.35 | N/A |
| Buy 1 | Put | $1.23 | N/A |
LUNG 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.
LUNG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LUNG. 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 LUNG
Collars on LUNG hedge an existing long LUNG 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.
LUNG thesis for this collar
The market-implied 1-standard-deviation range for LUNG extends from approximately $1.21 on the downside to $1.37 on the upside. A LUNG collar hedges an existing long LUNG 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 LUNG IV rank near 0.31% 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 LUNG at 22.00%. As a Healthcare name, LUNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LUNG-specific events.
LUNG 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. LUNG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LUNG alongside the broader basket even when LUNG-specific fundamentals are unchanged. Always rebuild the position from current LUNG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LUNG?
- A collar on LUNG is the collar strategy applied to LUNG (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 LUNG stock trading near $1.29, the strikes shown on this page are snapped to the nearest listed LUNG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LUNG 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 LUNG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.00%), 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 LUNG collar?
- The breakeven for the LUNG 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 LUNG market-implied 1-standard-deviation expected move is approximately 6.31%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LUNG?
- Collars on LUNG hedge an existing long LUNG 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 LUNG implied volatility affect this collar?
- LUNG ATM IV is at 22.00% with IV rank near 0.31%, 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.