OFIX Collar Strategy
OFIX (Orthofix Medical Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Orthofix Medical Inc. operates as a medical device and biologics company in the United States, Italy, Germany, France, the United Kingdom, Brazil, and internationally. It operates through two segments, Global Spine and Global Orthopedics. The Global Spine segment manufactures, distributes, and provides support services for bone growth stimulator devices that enhance bone fusion, as well as used as a therapeutic treatment for non-spinal and appendicular fractures. This segment also designs, develops, and markets a portfolio of motion preservation and fixation implant products, which are used in surgical procedures of the spine; and a portfolio of products and tissue forms that allow physicians to treat a range of spinal and orthopedic conditions, as well as markets regenerative non-tissue biologic solutions derived from synthetic materials. The Global Orthopedics segment designs, develops, and markets orthopedic products that are used in fracture repair, deformity correction, and bone reconstruction procedures. The company markets and distributes its products through direct sales representatives; independent distributors; and employed and independent sales representatives to physicians, hospitals, ambulatory surgery centers, integrated health delivery systems, and other purchasing organizations.
OFIX (Orthofix Medical Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $493.5M, a beta of 0.79 versus the broader market, a 52-week range of 10.24-16.99, average daily share volume of 297K, a public-listing history dating back to 1992, approximately 2K full-time employees. These structural characteristics shape how OFIX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places OFIX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on OFIX?
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 OFIX snapshot
As of May 15, 2026, spot at $11.99, ATM IV 201.20%, IV rank 45.13%, expected move 57.68%. The collar on OFIX 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 OFIX specifically: IV regime affects collar pricing on both sides; mid-range OFIX IV at 201.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 57.68% (roughly $6.92 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 OFIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on OFIX should anchor to the underlying notional of $11.99 per share and to the trader's directional view on OFIX stock.
OFIX collar setup
The OFIX 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 OFIX near $11.99, the first option leg uses a $12.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OFIX 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 OFIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.99 | long |
| Sell 1 | Call | $12.59 | N/A |
| Buy 1 | Put | $11.39 | N/A |
OFIX 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.
OFIX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OFIX. 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 OFIX
Collars on OFIX hedge an existing long OFIX 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.
OFIX thesis for this collar
The market-implied 1-standard-deviation range for OFIX extends from approximately $5.07 on the downside to $18.91 on the upside. A OFIX collar hedges an existing long OFIX 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 OFIX IV rank near 45.13% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on OFIX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, OFIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OFIX-specific events.
OFIX 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. OFIX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OFIX alongside the broader basket even when OFIX-specific fundamentals are unchanged. Always rebuild the position from current OFIX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OFIX?
- A collar on OFIX is the collar strategy applied to OFIX (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 OFIX stock trading near $11.99, the strikes shown on this page are snapped to the nearest listed OFIX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OFIX 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 OFIX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 201.20%), 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 OFIX collar?
- The breakeven for the OFIX 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 OFIX market-implied 1-standard-deviation expected move is approximately 57.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OFIX?
- Collars on OFIX hedge an existing long OFIX 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 OFIX implied volatility affect this collar?
- OFIX ATM IV is at 201.20% with IV rank near 45.13%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.