MASI Collar Strategy
MASI (Masimo Corporation), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
Masimo Corporation develops, manufactures, and markets noninvasive monitoring technologies and hospital automation solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. It offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, handheld capnograph and capnometer devices, and capnography sampling lines; O3 regional oximetry for tissue oxygen saturation measurement; and hemodynamic monitoring solutions. Its Masimo Hospital Automation platform includes Patient SafetyNet, Patient SafetyNet surveillance, Kite, UniView, Replica, UniView : 60, and MyView. It offers connectivity devices; and nasal high flow ventilation and neuromodulation solutions.
MASI (Masimo Corporation) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $9.34B, a trailing P/E of 122.06, a beta of 1.13 versus the broader market, a 52-week range of 125.94-179, average daily share volume of 1.7M, a public-listing history dating back to 2007, approximately 4K full-time employees. These structural characteristics shape how MASI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places MASI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 122.06 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 MASI?
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 MASI snapshot
As of May 15, 2026, spot at $178.50, ATM IV 156.40%, IV rank 37.21%, expected move 0.21%. The collar on MASI 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 MASI specifically: IV regime affects collar pricing on both sides; mid-range MASI IV at 156.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 0.21% (roughly $0.37 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 MASI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MASI should anchor to the underlying notional of $178.50 per share and to the trader's directional view on MASI stock.
MASI collar setup
The MASI 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 MASI near $178.50, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MASI 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 MASI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $178.50 | long |
| Sell 1 | Call | $185.00 | $0.01 |
| Buy 1 | Put | $170.00 | $0.02 |
MASI collar risk and reward
- Net Premium / Debit
- -$17,851.00
- Max Profit (per contract)
- $649.00
- Max Loss (per contract)
- -$851.00
- Breakeven(s)
- $178.51
- Risk / Reward Ratio
- 0.763
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.
MASI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MASI. 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% | -$851.00 |
| $39.48 | -77.9% | -$851.00 |
| $78.94 | -55.8% | -$851.00 |
| $118.41 | -33.7% | -$851.00 |
| $157.87 | -11.6% | -$851.00 |
| $197.34 | +10.6% | +$649.00 |
| $236.81 | +32.7% | +$649.00 |
| $276.27 | +54.8% | +$649.00 |
| $315.74 | +76.9% | +$649.00 |
| $355.21 | +99.0% | +$649.00 |
When traders use collar on MASI
Collars on MASI hedge an existing long MASI 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.
MASI thesis for this collar
The market-implied 1-standard-deviation range for MASI extends from approximately $178.13 on the downside to $178.87 on the upside. A MASI collar hedges an existing long MASI 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 MASI IV rank near 37.21% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on MASI should anchor more to the directional view and the expected-move geometry. As a Healthcare name, MASI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MASI-specific events.
MASI 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. MASI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MASI alongside the broader basket even when MASI-specific fundamentals are unchanged. Always rebuild the position from current MASI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MASI?
- A collar on MASI is the collar strategy applied to MASI (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 MASI stock trading near $178.50, the strikes shown on this page are snapped to the nearest listed MASI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MASI 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 MASI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 156.40%), the computed maximum profit is $649.00 per contract and the computed maximum loss is -$851.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MASI collar?
- The breakeven for the MASI collar priced on this page is roughly $178.51 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 MASI market-implied 1-standard-deviation expected move is approximately 0.21%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MASI?
- Collars on MASI hedge an existing long MASI 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 MASI implied volatility affect this collar?
- MASI ATM IV is at 156.40% with IV rank near 37.21%, 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.