PMVP Collar Strategy
PMVP (PMV Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
PMV Pharmaceuticals, Inc. operates as a precision oncology company focused on discovering and developing both small molecule and tumor-agnostic therapies to address p53 mutations in cancer patients. Their leading experimental drug, PC14586, is a small molecule designed to correct the p53 protein specifically when it contains the Y220C mutation, thereby restoring its natural, functional state. The company is also progressing a pipeline of other programs targeting various mutant p53 forms, including Wild-type p53 Induced-Phosphatase, R282W, R273H, and other prevalent p53 hotspot mutations. Originally known as PJ Pharmaceuticals, Inc., the firm rebranded to PMV Pharmaceuticals, Inc. in July 2013. The company was founded in 2013 and has its main operational base in Cranbury, New Jersey.
PMVP (PMV Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $67.2M, a beta of 1.35 versus the broader market, a 52-week range of 1.02-1.88, average daily share volume of 357K, a public-listing history dating back to 2020, approximately 54 full-time employees. These structural characteristics shape how PMVP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates PMVP 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 PMVP?
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.
PMVP snapshot
As of August 14, 2026, spot at $1.27, ATM IV 21.50%, IV rank 4.96%, expected move 6.16%. The collar on PMVP below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on PMVP specifically: IV regime affects collar pricing on both sides; compressed PMVP IV at 21.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.16% (roughly $0.08 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PMVP expiries trade a higher absolute premium for lower per-day decay. Position sizing on PMVP should anchor to the underlying notional of $1.27 per share and to the trader's directional view on PMVP stock.
PMVP collar setup
The PMVP 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 PMVP at $1.27 on that close, the first option leg uses a $1.33 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PMVP chain at a 35-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 PMVP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.27 | long |
| Sell 1 | Call | $1.33 | N/A |
| Buy 1 | Put | $1.21 | N/A |
PMVP 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.
PMVP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PMVP. 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 PMVP
Collars on PMVP hedge an existing long PMVP 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.
PMVP thesis for this collar
The market-implied 1-standard-deviation range for PMVP extends from approximately $1.19 on the downside to $1.35 on the upside. A PMVP collar hedges an existing long PMVP 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 PMVP IV rank near 4.96% 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 PMVP at 21.50%. As a Healthcare name, PMVP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PMVP-specific events.
PMVP 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. PMVP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PMVP alongside the broader basket even when PMVP-specific fundamentals are unchanged. Always rebuild the position from current PMVP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PMVP?
- A collar on PMVP is the collar strategy applied to PMVP (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 PMVP stock at $1.27 on the most recent close, the strikes shown on this page are snapped to the nearest listed PMVP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are PMVP 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 PMVP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 21.50%), 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 PMVP collar?
- The breakeven for the PMVP collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PMVP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 6.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PMVP?
- Collars on PMVP hedge an existing long PMVP 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 PMVP implied volatility affect this collar?
- PMVP ATM IV is at 21.50% with IV rank near 4.96%, 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.