PROK Collar Strategy
PROK (ProKidney Corp.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ProKidney Corp., a clinical-stage biotechnology, engages in developing cellular therapy candidates. It is developing Renal Autologous Cell Therapy, an autologous homologous cell admixture that is in a Phase III development program, as well as Phase II clinical trials for the treatment of moderate to severe diabetic kidney disease; and Phase I clinical trial for patients with congenital anomalies of the kidney and urinary tract. The company was founded in 2015 and is headquartered in Winston-Salem, North Carolina.
PROK (ProKidney Corp.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $506.7M, a beta of 1.75 versus the broader market, a 52-week range of 0.54-7.13, average daily share volume of 814K, a public-listing history dating back to 2021, approximately 204 full-time employees. These structural characteristics shape how PROK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.75 indicates PROK 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 PROK?
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 PROK snapshot
As of May 14, 2026, spot at $1.70, ATM IV 170.80%, IV rank 33.67%, expected move 48.97%. The collar on PROK 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 35-day expiry.
Why this collar structure on PROK specifically: IV regime affects collar pricing on both sides; mid-range PROK IV at 170.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 48.97% (roughly $0.83 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 PROK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PROK should anchor to the underlying notional of $1.70 per share and to the trader's directional view on PROK stock.
PROK collar setup
The PROK 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 PROK near $1.70, the first option leg uses a $1.79 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PROK 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 PROK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.70 | long |
| Sell 1 | Call | $1.79 | N/A |
| Buy 1 | Put | $1.62 | N/A |
PROK 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.
PROK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PROK. 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 PROK
Collars on PROK hedge an existing long PROK 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.
PROK thesis for this collar
The market-implied 1-standard-deviation range for PROK extends from approximately $0.87 on the downside to $2.53 on the upside. A PROK collar hedges an existing long PROK 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 PROK IV rank near 33.67% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on PROK should anchor more to the directional view and the expected-move geometry. As a Healthcare name, PROK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PROK-specific events.
PROK 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. PROK positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PROK alongside the broader basket even when PROK-specific fundamentals are unchanged. Always rebuild the position from current PROK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PROK?
- A collar on PROK is the collar strategy applied to PROK (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 PROK stock trading near $1.70, the strikes shown on this page are snapped to the nearest listed PROK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PROK 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 PROK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 170.80%), 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 PROK collar?
- The breakeven for the PROK 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 PROK market-implied 1-standard-deviation expected move is approximately 48.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PROK?
- Collars on PROK hedge an existing long PROK 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 PROK implied volatility affect this collar?
- PROK ATM IV is at 170.80% with IV rank near 33.67%, 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.