PYPD Collar Strategy
PYPD (PolyPid Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
PolyPid Ltd., a late-stage biopharma company, develops, manufactures, and commercializes products based on polymer-lipid encapsulation matrix (PLEX) platform to address unmet medical needs. Its lead product candidate is D-PLEX100, which is in Phase III clinical trial for the prevention of sternal (bone) surgical site infections (SSIs), as well as for the prevention of abdominal (soft tissue) SSIs. PolyPid Ltd. was incorporated in 2008 and is headquartered in Petah Tikva, Israel.
PYPD (PolyPid Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $43.0M, a beta of 1.41 versus the broader market, a 52-week range of 2.44-5.12, average daily share volume of 51K, a public-listing history dating back to 2020, approximately 57 full-time employees. These structural characteristics shape how PYPD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.41 indicates PYPD 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 PYPD?
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 PYPD snapshot
As of May 15, 2026, spot at $4.50, ATM IV 480.60%, IV rank 97.15%, expected move 137.78%. The collar on PYPD 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 PYPD specifically: IV regime affects collar pricing on both sides; elevated PYPD IV at 480.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 137.78% (roughly $6.20 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 PYPD expiries trade a higher absolute premium for lower per-day decay. Position sizing on PYPD should anchor to the underlying notional of $4.50 per share and to the trader's directional view on PYPD stock.
PYPD collar setup
The PYPD 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 PYPD near $4.50, the first option leg uses a $4.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PYPD 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 PYPD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.50 | long |
| Sell 1 | Call | $4.73 | N/A |
| Buy 1 | Put | $4.27 | N/A |
PYPD 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.
PYPD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PYPD. 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 PYPD
Collars on PYPD hedge an existing long PYPD 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.
PYPD thesis for this collar
The market-implied 1-standard-deviation range for PYPD extends from approximately $-1.70 on the downside to $10.70 on the upside. A PYPD collar hedges an existing long PYPD 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 PYPD IV rank near 97.15% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on PYPD at 480.60%. As a Healthcare name, PYPD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PYPD-specific events.
PYPD 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. PYPD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PYPD alongside the broader basket even when PYPD-specific fundamentals are unchanged. Always rebuild the position from current PYPD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PYPD?
- A collar on PYPD is the collar strategy applied to PYPD (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 PYPD stock trading near $4.50, the strikes shown on this page are snapped to the nearest listed PYPD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PYPD 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 PYPD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 480.60%), 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 PYPD collar?
- The breakeven for the PYPD 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 PYPD market-implied 1-standard-deviation expected move is approximately 137.78%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PYPD?
- Collars on PYPD hedge an existing long PYPD 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 PYPD implied volatility affect this collar?
- PYPD ATM IV is at 480.60% with IV rank near 97.15%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.