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 18.10%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$85.00 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 $14.85 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 5.19%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MDWD implied volatility affect this collar?

MDWD ATM IV is at 18.10% with IV rank near 0.00%, 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.

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, bio-therapeutic, and non-surgical solutions for tissue repair and regeneration in the United States, Germany, Italy, Spain, and internationally. The company markets NexoBrid, a biopharmaceutical product for the removal of eschar in patients with deep partial- and full-thickness thermal burns to burn centers and hospitals burn units. It also develops EscharEx, a bromelain-based, bioactive enzymatic therapy for the treatment of chronic wounds and other hard-to-heal wounds; and MW005, a topically applied biological product candidate to treat non-melanoma skin cancers. MediWound Ltd. was incorporated in 2000 and is headquartered in Yavne, Israel.

MDWD (MediWound Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $165.0M, a beta of 0.15 versus the broader market, a 52-week range of 13.54-21.255, average daily share volume of 97K, a public-listing history dating back to 2014, approximately 121 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 0.15 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 June 29, 2026, spot at $15.05, ATM IV 18.10%, IV rank 0.00%, expected move 5.19%. 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 81-day expiry.

Why this collar structure on MDWD specifically: IV regime affects collar pricing on both sides; compressed MDWD IV at 18.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.19% (roughly $0.78 on the underlying). The 81-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 $15.05 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 $15.05, the first option leg uses a $16.00 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 81-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	$15.05	long
Sell 1	Call	$16.00	$1.29
Buy 1	Put	$14.00	$1.09

MDWD collar risk and reward

Net Premium / Debit: -$1,485.00
Max Profit (per contract): $115.00
Max Loss (per contract): -$85.00
Breakeven(s): $14.85
Risk / Reward Ratio: 1.353

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$85.00
$3.34	-77.8%	-$85.00
$6.66	-55.7%	-$85.00
$9.99	-33.6%	-$85.00
$13.32	-11.5%	-$85.00
$16.64	+10.6%	+$115.00
$19.97	+32.7%	+$115.00
$23.30	+54.8%	+$115.00
$26.62	+76.9%	+$115.00
$29.95	+99.0%	+$115.00

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 $14.27 on the downside to $15.83 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 0.00% 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 18.10%. 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 $15.05, 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 18.10%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$85.00 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 $14.85 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 5.19%; 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 18.10% with IV rank near 0.00%, 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.