NMAD Collar Strategy
NMAD (NOMAD Power Solutions, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Lixte Biotechnology Holdings, Inc. is a clinical-stage biopharmaceutical company, which engages in the business of developing a drug class called protein phosphatase 2A inhibitors. The firm is also involved in utilizing biomarker technology to identify enzyme targets associated with serious common diseases and then designing novel compounds to attack those targets. The company was founded by John S. Kovach and Robert B. Royds on May 24, 2005 and is headquartered in Boca Raton, FL.
NMAD (NOMAD Power Solutions, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $48.6M, a beta of 1.30 versus the broader market, a 52-week range of 2.36-8.38, average daily share volume of 482K, a public-listing history dating back to 2020, approximately 3 full-time employees. These structural characteristics shape how NMAD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.30 indicates NMAD 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 NMAD?
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.
NMAD snapshot
As of August 14, 2026, spot at $4.18, ATM IV 46.40%, expected move 13.30%. The collar on NMAD below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on NMAD specifically: IV rank is unavailable in the current snapshot, so regime-based timing for NMAD is inferred from ATM IV at 46.40% alone, with a market-implied 1-standard-deviation move of approximately 13.30% (roughly $0.56 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NMAD expiries trade a higher absolute premium for lower per-day decay. Position sizing on NMAD should anchor to the underlying notional of $4.18 per share and to the trader's directional view on NMAD stock.
NMAD collar setup
The NMAD 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 NMAD at $4.18 on that close, the first option leg uses a $4.39 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NMAD chain at a 35-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 NMAD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.18 | long |
| Sell 1 | Call | $4.39 | N/A |
| Buy 1 | Put | $3.97 | N/A |
NMAD 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.
NMAD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NMAD. 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 NMAD
Collars on NMAD hedge an existing long NMAD 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.
NMAD thesis for this collar
The market-implied 1-standard-deviation range for NMAD extends from approximately $3.62 on the downside to $4.74 on the upside. A NMAD collar hedges an existing long NMAD 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 Healthcare name, NMAD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NMAD-specific events.
NMAD 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. NMAD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NMAD alongside the broader basket even when NMAD-specific fundamentals are unchanged. Always rebuild the position from current NMAD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NMAD?
- A collar on NMAD is the collar strategy applied to NMAD (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 NMAD stock at $4.18 on the most recent close, the strikes shown on this page are snapped to the nearest listed NMAD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are NMAD 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 NMAD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.40%), 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 NMAD collar?
- The breakeven for the NMAD collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The NMAD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NMAD?
- Collars on NMAD hedge an existing long NMAD 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 NMAD implied volatility affect this collar?
- Current NMAD ATM IV is 46.40%; IV rank context is unavailable in the current snapshot.