MIRM Collar Strategy
MIRM (Mirum Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Mirum Pharmaceuticals, Inc. is a biopharmaceutical firm dedicated to discovering and commercializing groundbreaking therapies for serious rare and orphan conditions. Its lead experimental drug, LIVMARLI, an oral treatment, is currently undergoing trials for progressive familial intrahepatic cholestasis (PFIC), Alagille syndrome, and biliary atresia. Furthermore, the company is advancing Volixibat to address intrahepatic cholestasis of pregnancy and primary sclerosing cholangitis. Founded in 2018, Mirum Pharmaceuticals, Inc. operates from its headquarters in Foster City, California.
MIRM (Mirum Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.21B, a beta of 0.51 versus the broader market, a 52-week range of 47.89-124.44, average daily share volume of 960K, a public-listing history dating back to 2019, approximately 334 full-time employees. These structural characteristics shape how MIRM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.51 indicates MIRM 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 MIRM?
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 MIRM snapshot
As of June 30, 2026, spot at $116.91, ATM IV 38.90%, IV rank 17.05%, expected move 11.15%. The collar on MIRM 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 MIRM specifically: IV regime affects collar pricing on both sides; compressed MIRM IV at 38.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.15% (roughly $13.04 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 MIRM expiries trade a higher absolute premium for lower per-day decay. Position sizing on MIRM should anchor to the underlying notional of $116.91 per share and to the trader's directional view on MIRM stock.
MIRM collar setup
The MIRM 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 MIRM near $116.91, the first option leg uses a $125.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MIRM 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 MIRM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $116.91 | long |
| Sell 1 | Call | $125.00 | $2.00 |
| Buy 1 | Put | $110.00 | $1.07 |
MIRM collar risk and reward
- Net Premium / Debit
- -$11,598.00
- Max Profit (per contract)
- $902.00
- Max Loss (per contract)
- -$598.00
- Breakeven(s)
- $115.98
- Risk / Reward Ratio
- 1.508
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.
MIRM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MIRM. 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% | -$598.00 |
| $25.86 | -77.9% | -$598.00 |
| $51.71 | -55.8% | -$598.00 |
| $77.56 | -33.7% | -$598.00 |
| $103.40 | -11.6% | -$598.00 |
| $129.25 | +10.6% | +$902.00 |
| $155.10 | +32.7% | +$902.00 |
| $180.95 | +54.8% | +$902.00 |
| $206.80 | +76.9% | +$902.00 |
| $232.65 | +99.0% | +$902.00 |
When traders use collar on MIRM
Collars on MIRM hedge an existing long MIRM 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.
MIRM thesis for this collar
The market-implied 1-standard-deviation range for MIRM extends from approximately $103.87 on the downside to $129.95 on the upside. A MIRM collar hedges an existing long MIRM 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 MIRM IV rank near 17.05% 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 MIRM at 38.90%. As a Healthcare name, MIRM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MIRM-specific events.
MIRM 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. MIRM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MIRM alongside the broader basket even when MIRM-specific fundamentals are unchanged. Always rebuild the position from current MIRM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MIRM?
- A collar on MIRM is the collar strategy applied to MIRM (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 MIRM stock trading near $116.91, the strikes shown on this page are snapped to the nearest listed MIRM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MIRM 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 MIRM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.90%), the computed maximum profit is $902.00 per contract and the computed maximum loss is -$598.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MIRM collar?
- The breakeven for the MIRM collar priced on this page is roughly $115.98 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 MIRM market-implied 1-standard-deviation expected move is approximately 11.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MIRM?
- Collars on MIRM hedge an existing long MIRM 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 MIRM implied volatility affect this collar?
- MIRM ATM IV is at 38.90% with IV rank near 17.05%, 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.