STIM Collar Strategy
STIM (Neuronetics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Neuronetics, Inc., a commercial stage medical technology company, designs, develops, and markets products for patients with neurohealth disorders in the United States and internationally. The company offers NeuroStar Advanced Therapy System, a non-invasive and non-systemic office-based treatment to treat adult patients with major depressive disorder. Its NeuroStar Advanced Therapy System uses transcranial magnetic stimulation to create a pulsed, MRI-strength magnetic field that induces electrical currents designed to stimulate specific areas of the brain associated with mood. The company sells its products through its sales and customer support team to psychiatrists. Neuronetics, Inc. was incorporated in 2001 and is headquartered in Malvern, Pennsylvania.
STIM (Neuronetics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $105.1M, a beta of 1.13 versus the broader market, a 52-week range of 0.8-4.85, average daily share volume of 2.0M, a public-listing history dating back to 2018, approximately 716 full-time employees. These structural characteristics shape how STIM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.13 places STIM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on STIM?
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 STIM snapshot
As of May 15, 2026, spot at $1.31, ATM IV 167.60%, IV rank 35.38%, expected move 48.05%. The collar on STIM 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 STIM specifically: IV regime affects collar pricing on both sides; mid-range STIM IV at 167.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 48.05% (roughly $0.63 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 STIM expiries trade a higher absolute premium for lower per-day decay. Position sizing on STIM should anchor to the underlying notional of $1.31 per share and to the trader's directional view on STIM stock.
STIM collar setup
The STIM 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 STIM near $1.31, the first option leg uses a $1.38 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STIM 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 STIM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.31 | long |
| Sell 1 | Call | $1.38 | N/A |
| Buy 1 | Put | $1.24 | N/A |
STIM 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.
STIM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on STIM. 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 STIM
Collars on STIM hedge an existing long STIM 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.
STIM thesis for this collar
The market-implied 1-standard-deviation range for STIM extends from approximately $0.68 on the downside to $1.94 on the upside. A STIM collar hedges an existing long STIM 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 STIM IV rank near 35.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on STIM should anchor more to the directional view and the expected-move geometry. As a Healthcare name, STIM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STIM-specific events.
STIM 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. STIM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STIM alongside the broader basket even when STIM-specific fundamentals are unchanged. Always rebuild the position from current STIM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on STIM?
- A collar on STIM is the collar strategy applied to STIM (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 STIM stock trading near $1.31, the strikes shown on this page are snapped to the nearest listed STIM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STIM 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 STIM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 167.60%), 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 STIM collar?
- The breakeven for the STIM 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 STIM market-implied 1-standard-deviation expected move is approximately 48.05%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on STIM?
- Collars on STIM hedge an existing long STIM 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 STIM implied volatility affect this collar?
- STIM ATM IV is at 167.60% with IV rank near 35.38%, 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.