OLMA Collar Strategy
OLMA (Olema Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Olema Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for women's cancers. Its lead product candidate is OP-1250, an estrogen receptor (ER) antagonist and a selective ER degrader, which is in Phase 1/2 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive, human epidermal growth factor receptor 2-negative breast cancer. The company was formerly known as CombiThera, Inc. and changed its name to Olema Pharmaceuticals, Inc. in March 2009. Olema Pharmaceuticals, Inc. was incorporated in 2006 and is headquartered in San Francisco, California.
OLMA (Olema Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.18B, a beta of 2.06 versus the broader market, a 52-week range of 3.89-36.259, average daily share volume of 1.5M, a public-listing history dating back to 2020, approximately 96 full-time employees. These structural characteristics shape how OLMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.06 indicates OLMA 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 OLMA?
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 OLMA snapshot
As of May 15, 2026, spot at $13.57, ATM IV 97.80%, IV rank 9.85%, expected move 28.04%. The collar on OLMA 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 63-day expiry.
Why this collar structure on OLMA specifically: IV regime affects collar pricing on both sides; compressed OLMA IV at 97.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.04% (roughly $3.80 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated OLMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on OLMA should anchor to the underlying notional of $13.57 per share and to the trader's directional view on OLMA stock.
OLMA collar setup
The OLMA 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 OLMA near $13.57, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OLMA chain at a 63-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 OLMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.57 | long |
| Sell 1 | Call | $14.00 | $1.88 |
| Buy 1 | Put | $13.00 | $1.71 |
OLMA collar risk and reward
- Net Premium / Debit
- -$1,340.00
- Max Profit (per contract)
- $60.00
- Max Loss (per contract)
- -$40.00
- Breakeven(s)
- $13.40
- Risk / Reward Ratio
- 1.500
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.
OLMA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on OLMA. 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% | -$40.00 |
| $3.01 | -77.8% | -$40.00 |
| $6.01 | -55.7% | -$40.00 |
| $9.01 | -33.6% | -$40.00 |
| $12.01 | -11.5% | -$40.00 |
| $15.01 | +10.6% | +$60.00 |
| $18.01 | +32.7% | +$60.00 |
| $21.01 | +54.8% | +$60.00 |
| $24.00 | +76.9% | +$60.00 |
| $27.00 | +99.0% | +$60.00 |
When traders use collar on OLMA
Collars on OLMA hedge an existing long OLMA 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.
OLMA thesis for this collar
The market-implied 1-standard-deviation range for OLMA extends from approximately $9.77 on the downside to $17.37 on the upside. A OLMA collar hedges an existing long OLMA 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 OLMA IV rank near 9.85% 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 OLMA at 97.80%. As a Healthcare name, OLMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OLMA-specific events.
OLMA 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. OLMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OLMA alongside the broader basket even when OLMA-specific fundamentals are unchanged. Always rebuild the position from current OLMA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on OLMA?
- A collar on OLMA is the collar strategy applied to OLMA (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 OLMA stock trading near $13.57, the strikes shown on this page are snapped to the nearest listed OLMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OLMA 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 OLMA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 97.80%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a OLMA collar?
- The breakeven for the OLMA collar priced on this page is roughly $13.40 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 OLMA market-implied 1-standard-deviation expected move is approximately 28.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on OLMA?
- Collars on OLMA hedge an existing long OLMA 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 OLMA implied volatility affect this collar?
- OLMA ATM IV is at 97.80% with IV rank near 9.85%, 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.