MDWD Collar Strategy
MDWD (MediWound Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
MediWound Ltd., a biopharmaceutical company, develops, manufactures, and commercializes novel and bio-therapeutic solutions for tissue repair and regeneration. It markets NexoBrid, a biopharmaceutical product for the removal of eschar, a dead or damaged tissue in adults with deep partial- and full-thickness thermal burns to burn centers and hospitals burn units. The company also develops EscharEx, which has completed Phase II clinical trials for the debridement of chronic and other hard-to-heal wounds; MW005, which is in phase I/II for the treatment of low-risk basal cell carcinoma. MediWound Ltd. was founded in 2000 and is headquartered in Yavne, Israel.
MDWD (MediWound Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $176.5M, a beta of 0.22 versus the broader market, a 52-week range of 14.9-22.505, average daily share volume of 86K, a public-listing history dating back to 2014, approximately 111 full-time employees. These structural characteristics shape how MDWD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.22 indicates MDWD 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 MDWD?
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 MDWD snapshot
As of May 15, 2026, spot at $16.57, ATM IV 51.30%, IV rank 5.44%, expected move 14.71%. The collar on MDWD 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 126-day expiry.
Why this collar structure on MDWD specifically: IV regime affects collar pricing on both sides; compressed MDWD IV at 51.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.71% (roughly $2.44 on the underlying). The 126-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MDWD expiries trade a higher absolute premium for lower per-day decay. Position sizing on MDWD should anchor to the underlying notional of $16.57 per share and to the trader's directional view on MDWD stock.
MDWD collar setup
The MDWD 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 MDWD near $16.57, the first option leg uses a $17.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MDWD chain at a 126-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 MDWD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.57 | long |
| Sell 1 | Call | $17.00 | $1.70 |
| Buy 1 | Put | $16.00 | $1.93 |
MDWD collar risk and reward
- Net Premium / Debit
- -$1,679.50
- Max Profit (per contract)
- $20.50
- Max Loss (per contract)
- -$79.50
- Breakeven(s)
- $16.79
- Risk / Reward Ratio
- 0.258
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.
MDWD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MDWD. 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% | -$79.50 |
| $3.67 | -77.8% | -$79.50 |
| $7.34 | -55.7% | -$79.50 |
| $11.00 | -33.6% | -$79.50 |
| $14.66 | -11.5% | -$79.50 |
| $18.32 | +10.6% | +$20.50 |
| $21.99 | +32.7% | +$20.50 |
| $25.65 | +54.8% | +$20.50 |
| $29.31 | +76.9% | +$20.50 |
| $32.97 | +99.0% | +$20.50 |
When traders use collar on MDWD
Collars on MDWD hedge an existing long MDWD 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.
MDWD thesis for this collar
The market-implied 1-standard-deviation range for MDWD extends from approximately $14.13 on the downside to $19.01 on the upside. A MDWD collar hedges an existing long MDWD 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 MDWD IV rank near 5.44% 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 MDWD at 51.30%. As a Healthcare name, MDWD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MDWD-specific events.
MDWD 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. MDWD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MDWD alongside the broader basket even when MDWD-specific fundamentals are unchanged. Always rebuild the position from current MDWD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MDWD?
- A collar on MDWD is the collar strategy applied to MDWD (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 MDWD stock trading near $16.57, the strikes shown on this page are snapped to the nearest listed MDWD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MDWD 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 MDWD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.30%), the computed maximum profit is $20.50 per contract and the computed maximum loss is -$79.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MDWD collar?
- The breakeven for the MDWD collar priced on this page is roughly $16.79 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 MDWD market-implied 1-standard-deviation expected move is approximately 14.71%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MDWD?
- Collars on MDWD hedge an existing long MDWD 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 MDWD implied volatility affect this collar?
- MDWD ATM IV is at 51.30% with IV rank near 5.44%, 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.