MRDN Collar Strategy
MRDN (Meridian Holdings Inc.), in the Technology sector, (Electronic Gaming & Multimedia industry), listed on NASDAQ.
Meridian Holdings, Inc. engages in offering casino, sportsbook, and competition products. Its brands include R Kings Competitions, MexPlay, and GM-AG. It operates through the Business-to-business (B2B) and Business-to-consumer (B2C) segments. The B2B segment is involved in the charges of usage of its software and royalties charged on the use of third-party gaming content. The B2C segment focuses on the charges to enter prize competitions in the United Kingdom. The company was founded by Weiting Feng and Anthony Brian Goodman on June 4, 2008 and is headquartered in Las Vegas, NV.
MRDN (Meridian Holdings Inc.) trades in the Technology sector, specifically Electronic Gaming & Multimedia, with a market capitalization of approximately $137.2M, a beta of 1.41 versus the broader market, a 52-week range of 5.796-23.76, average daily share volume of 41K, a public-listing history dating back to 2009, approximately 1K full-time employees. These structural characteristics shape how MRDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates MRDN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a collar on MRDN?
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 MRDN snapshot
As of May 15, 2026, spot at $10.92, ATM IV 247.30%, expected move 70.90%. The collar on MRDN 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 MRDN specifically: IV rank is unavailable in the current snapshot, so regime-based timing for MRDN is inferred from ATM IV at 247.30% alone, with a market-implied 1-standard-deviation move of approximately 70.90% (roughly $7.74 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 MRDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on MRDN should anchor to the underlying notional of $10.92 per share and to the trader's directional view on MRDN stock.
MRDN collar setup
The MRDN 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 MRDN near $10.92, the first option leg uses a $11.47 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MRDN 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 MRDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.92 | long |
| Sell 1 | Call | $11.47 | N/A |
| Buy 1 | Put | $10.37 | N/A |
MRDN 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.
MRDN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on MRDN. 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 MRDN
Collars on MRDN hedge an existing long MRDN 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.
MRDN thesis for this collar
The market-implied 1-standard-deviation range for MRDN extends from approximately $3.18 on the downside to $18.66 on the upside. A MRDN collar hedges an existing long MRDN 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. As a Technology name, MRDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MRDN-specific events.
MRDN 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. MRDN positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MRDN alongside the broader basket even when MRDN-specific fundamentals are unchanged. Always rebuild the position from current MRDN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on MRDN?
- A collar on MRDN is the collar strategy applied to MRDN (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 MRDN stock trading near $10.92, the strikes shown on this page are snapped to the nearest listed MRDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MRDN 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 MRDN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 247.30%), 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 MRDN collar?
- The breakeven for the MRDN 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 MRDN market-implied 1-standard-deviation expected move is approximately 70.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on MRDN?
- Collars on MRDN hedge an existing long MRDN 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 MRDN implied volatility affect this collar?
- Current MRDN ATM IV is 247.30%; IV rank context is unavailable in the current snapshot.