PLSE Collar Strategy
PLSE (Pulse Biosciences, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
Pulse Biosciences, Inc. operates as a novel bioelectric medicine company. It offers CellFX System, a tunable, software-enabled, and console-based platform that delivers nano second duration pulses of electrical energy to non-thermally clear targeted cells while sparing adjacent non-cellular tissue to treat a various medical condition by using its Nano-Pulse Stimulation technology. The company was formerly known as Electroblate, Inc. and changed its name to Pulse Biosciences, Inc. in December 2015. Pulse Biosciences, Inc. was incorporated in 2014 and is headquartered in Hayward, California.
PLSE (Pulse Biosciences, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $1.63B, a beta of 1.63 versus the broader market, a 52-week range of 12.56-26.3, average daily share volume of 299K, a public-listing history dating back to 2016, approximately 75 full-time employees. These structural characteristics shape how PLSE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.63 indicates PLSE 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 PLSE?
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 PLSE snapshot
As of May 15, 2026, spot at $24.66, ATM IV 71.20%, IV rank 5.58%, expected move 20.41%. The collar on PLSE 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 PLSE specifically: IV regime affects collar pricing on both sides; compressed PLSE IV at 71.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.41% (roughly $5.03 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 PLSE expiries trade a higher absolute premium for lower per-day decay. Position sizing on PLSE should anchor to the underlying notional of $24.66 per share and to the trader's directional view on PLSE stock.
PLSE collar setup
The PLSE 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 PLSE near $24.66, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PLSE 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 PLSE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $24.66 | long |
| Sell 1 | Call | $26.00 | $1.35 |
| Buy 1 | Put | $23.00 | $1.39 |
PLSE collar risk and reward
- Net Premium / Debit
- -$2,470.00
- Max Profit (per contract)
- $130.00
- Max Loss (per contract)
- -$170.00
- Breakeven(s)
- $24.70
- Risk / Reward Ratio
- 0.765
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.
PLSE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PLSE. 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 | -100.0% | -$170.00 |
| $5.46 | -77.9% | -$170.00 |
| $10.91 | -55.7% | -$170.00 |
| $16.36 | -33.6% | -$170.00 |
| $21.82 | -11.5% | -$170.00 |
| $27.27 | +10.6% | +$130.00 |
| $32.72 | +32.7% | +$130.00 |
| $38.17 | +54.8% | +$130.00 |
| $43.62 | +76.9% | +$130.00 |
| $49.07 | +99.0% | +$130.00 |
When traders use collar on PLSE
Collars on PLSE hedge an existing long PLSE 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.
PLSE thesis for this collar
The market-implied 1-standard-deviation range for PLSE extends from approximately $19.63 on the downside to $29.69 on the upside. A PLSE collar hedges an existing long PLSE 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 PLSE IV rank near 5.58% 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 PLSE at 71.20%. As a Healthcare name, PLSE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PLSE-specific events.
PLSE 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. PLSE positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PLSE alongside the broader basket even when PLSE-specific fundamentals are unchanged. Always rebuild the position from current PLSE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PLSE?
- A collar on PLSE is the collar strategy applied to PLSE (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 PLSE stock trading near $24.66, the strikes shown on this page are snapped to the nearest listed PLSE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PLSE 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 PLSE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 71.20%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$170.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PLSE collar?
- The breakeven for the PLSE collar priced on this page is roughly $24.70 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 PLSE market-implied 1-standard-deviation expected move is approximately 20.41%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PLSE?
- Collars on PLSE hedge an existing long PLSE 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 PLSE implied volatility affect this collar?
- PLSE ATM IV is at 71.20% with IV rank near 5.58%, 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.