STSS Collar Strategy
STSS (Sharps Technology, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
Sharps Technology Inc., a medical device company, researches, designs, develops, manufactures, distributes, and sells safety syringe products in the United States. It offers Sharps Provensa, an ultra-low waste space syringe for the administration of various vaccines and injectable medications. The company was incorporated in 2017 and is based in Melville, New York.
STSS (Sharps Technology, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $50.0M, a beta of 2.02 versus the broader market, a 52-week range of 1.415-18.23, average daily share volume of 333K, a public-listing history dating back to 2022, approximately 55 full-time employees. These structural characteristics shape how STSS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.02 indicates STSS 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 STSS?
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 STSS snapshot
As of May 15, 2026, spot at $1.91, ATM IV 92.90%, expected move 26.63%. The collar on STSS 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 STSS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for STSS is inferred from ATM IV at 92.90% alone, with a market-implied 1-standard-deviation move of approximately 26.63% (roughly $0.51 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 STSS expiries trade a higher absolute premium for lower per-day decay. Position sizing on STSS should anchor to the underlying notional of $1.91 per share and to the trader's directional view on STSS stock.
STSS collar setup
The STSS 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 STSS near $1.91, the first option leg uses a $2.01 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STSS 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 STSS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $1.91 | long |
| Sell 1 | Call | $2.01 | N/A |
| Buy 1 | Put | $1.81 | N/A |
STSS 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.
STSS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on STSS. 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 STSS
Collars on STSS hedge an existing long STSS 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.
STSS thesis for this collar
The market-implied 1-standard-deviation range for STSS extends from approximately $1.40 on the downside to $2.42 on the upside. A STSS collar hedges an existing long STSS 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. As a Healthcare name, STSS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STSS-specific events.
STSS 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. STSS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STSS alongside the broader basket even when STSS-specific fundamentals are unchanged. Always rebuild the position from current STSS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on STSS?
- A collar on STSS is the collar strategy applied to STSS (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 STSS stock trading near $1.91, the strikes shown on this page are snapped to the nearest listed STSS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STSS 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 STSS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 92.90%), 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 STSS collar?
- The breakeven for the STSS 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 STSS market-implied 1-standard-deviation expected move is approximately 26.63%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on STSS?
- Collars on STSS hedge an existing long STSS 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 STSS implied volatility affect this collar?
- Current STSS ATM IV is 92.90%; IV rank context is unavailable in the current snapshot.