ORMP Collar Strategy
ORMP (Oramed Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Oramed Pharmaceuticals Inc., founded in 2002 and based in New York, New York, specializes in the development of groundbreaking pharmaceutical treatments. Their primary focus is on creating orally ingested capsules or pills for the delivery of polypeptides, particularly aimed at managing diabetes. The company's leading product, ORMD-0801, is an oral insulin capsule that has successfully completed Phase II clinical trials for patients with diabetes. Oramed is also advancing ORMD-0901, an oral glucagon-like peptide-1 (GLP-1) capsule, which has concluded Phase I clinical trials for the treatment of type 2 diabetes. Additionally, an oral leptin capsule for weight loss is currently under development. The firm was originally incorporated as Integrated Security Technologies, Inc., before officially changing its name to Oramed Pharmaceuticals Inc. in April 2006.
ORMP (Oramed Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $191.1M, a trailing P/E of 1.73, a beta of 1.24 versus the broader market, a 52-week range of 1.98-5.19, average daily share volume of 253K, a public-listing history dating back to 2007, approximately 13 full-time employees. These structural characteristics shape how ORMP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.24 places ORMP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 1.73 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. ORMP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ORMP?
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 ORMP snapshot
As of June 30, 2026, spot at $4.79, ATM IV 166.80%, IV rank 33.08%, expected move 47.82%. The collar on ORMP 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 17-day expiry.
Why this collar structure on ORMP specifically: IV regime affects collar pricing on both sides; mid-range ORMP IV at 166.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 47.82% (roughly $2.29 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ORMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on ORMP should anchor to the underlying notional of $4.79 per share and to the trader's directional view on ORMP stock.
ORMP collar setup
The ORMP 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 ORMP near $4.79, the first option leg uses a $5.03 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ORMP chain at a 17-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 ORMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.79 | long |
| Sell 1 | Call | $5.03 | N/A |
| Buy 1 | Put | $4.55 | N/A |
ORMP 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.
ORMP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ORMP. 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 ORMP
Collars on ORMP hedge an existing long ORMP 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.
ORMP thesis for this collar
The market-implied 1-standard-deviation range for ORMP extends from approximately $2.50 on the downside to $7.08 on the upside. A ORMP collar hedges an existing long ORMP 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 ORMP IV rank near 33.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ORMP should anchor more to the directional view and the expected-move geometry. As a Healthcare name, ORMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ORMP-specific events.
ORMP 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. ORMP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ORMP alongside the broader basket even when ORMP-specific fundamentals are unchanged. Always rebuild the position from current ORMP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ORMP?
- A collar on ORMP is the collar strategy applied to ORMP (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 ORMP stock trading near $4.79, the strikes shown on this page are snapped to the nearest listed ORMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ORMP 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 ORMP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 166.80%), 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 ORMP collar?
- The breakeven for the ORMP 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 ORMP market-implied 1-standard-deviation expected move is approximately 47.82%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ORMP?
- Collars on ORMP hedge an existing long ORMP 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 ORMP implied volatility affect this collar?
- ORMP ATM IV is at 166.80% with IV rank near 33.08%, 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.