NVCR Collar Strategy
NVCR (NovoCure Limited), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Europe, the Middle East, Africa, Japan, and Greater China. Its TTFields devices include Optune for the treatment of glioblastoma; and Optune Lua for the treatment of malignant pleural mesothelioma. The company also has ongoing or completed clinical trials investigating TTFields in brain metastases, gastric cancer, glioblastoma, liver cancer, non-small cell lung cancer, pancreatic cancer, and ovarian cancer. NovoCure Limited was incorporated in 2000 and is headquartered in Saint Helier, Jersey.
NVCR (NovoCure Limited) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $2.10B, a beta of 0.90 versus the broader market, a 52-week range of 9.82-20.06, average daily share volume of 1.8M, a public-listing history dating back to 2015, approximately 1K full-time employees. These structural characteristics shape how NVCR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.90 places NVCR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on NVCR?
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 NVCR snapshot
As of May 15, 2026, spot at $17.55, ATM IV 62.00%, IV rank 13.93%, expected move 17.77%. The collar on NVCR 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 NVCR specifically: IV regime affects collar pricing on both sides; compressed NVCR IV at 62.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.77% (roughly $3.12 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 NVCR expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVCR should anchor to the underlying notional of $17.55 per share and to the trader's directional view on NVCR stock.
NVCR collar setup
The NVCR 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 NVCR near $17.55, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVCR 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 NVCR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.55 | long |
| Sell 1 | Call | $18.00 | $1.13 |
| Buy 1 | Put | $17.00 | $1.05 |
NVCR collar risk and reward
- Net Premium / Debit
- -$1,747.50
- Max Profit (per contract)
- $52.50
- Max Loss (per contract)
- -$47.50
- Breakeven(s)
- $17.47
- Risk / Reward Ratio
- 1.105
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.
NVCR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NVCR. 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% | -$47.50 |
| $3.89 | -77.8% | -$47.50 |
| $7.77 | -55.7% | -$47.50 |
| $11.65 | -33.6% | -$47.50 |
| $15.53 | -11.5% | -$47.50 |
| $19.41 | +10.6% | +$52.50 |
| $23.29 | +32.7% | +$52.50 |
| $27.17 | +54.8% | +$52.50 |
| $31.04 | +76.9% | +$52.50 |
| $34.92 | +99.0% | +$52.50 |
When traders use collar on NVCR
Collars on NVCR hedge an existing long NVCR 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.
NVCR thesis for this collar
The market-implied 1-standard-deviation range for NVCR extends from approximately $14.43 on the downside to $20.67 on the upside. A NVCR collar hedges an existing long NVCR 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 NVCR IV rank near 13.93% 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 NVCR at 62.00%. As a Healthcare name, NVCR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVCR-specific events.
NVCR 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. NVCR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVCR alongside the broader basket even when NVCR-specific fundamentals are unchanged. Always rebuild the position from current NVCR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NVCR?
- A collar on NVCR is the collar strategy applied to NVCR (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 NVCR stock trading near $17.55, the strikes shown on this page are snapped to the nearest listed NVCR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVCR 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 NVCR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 62.00%), the computed maximum profit is $52.50 per contract and the computed maximum loss is -$47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVCR collar?
- The breakeven for the NVCR collar priced on this page is roughly $17.47 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 NVCR market-implied 1-standard-deviation expected move is approximately 17.77%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NVCR?
- Collars on NVCR hedge an existing long NVCR 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 NVCR implied volatility affect this collar?
- NVCR ATM IV is at 62.00% with IV rank near 13.93%, 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.