TMCI Collar Strategy
TMCI (Treace Medical Concepts, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Treace Medical Concepts, Inc., an orthopedic medical device company, engages in the design, manufacture, and marketing of medical devices for foot and ankle surgeons in the United States. It offers Lapiplasty procedure that allows podiatric surgeons to treat all three dimensions of the bunion, providing patients with a cosmetic and medical improvement. The company also provides Lapiplasty Mini-Incision precision system. In addition, it offers products to address ancillary surgical procedures, including akin osteotomies, weil osteotomies, intercuneiform stabilization, lesser tarsometatarsal joint fusions, and autograft bone harvesting, as well as for MTP fusion. Treace Medical Concepts, Inc. was founded in 2013 and is headquartered in Ponte Vedra Beach, Florida.
TMCI (Treace Medical Concepts, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $164.1M, a beta of 1.11 versus the broader market, a 52-week range of 1.17-7.78, average daily share volume of 828K, a public-listing history dating back to 2021, approximately 477 full-time employees. These structural characteristics shape how TMCI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places TMCI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on TMCI?
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 TMCI snapshot
As of May 15, 2026, spot at $2.69, ATM IV 76.20%, IV rank 15.06%, expected move 21.85%. The collar on TMCI 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 TMCI specifically: IV regime affects collar pricing on both sides; compressed TMCI IV at 76.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.85% (roughly $0.59 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 TMCI expiries trade a higher absolute premium for lower per-day decay. Position sizing on TMCI should anchor to the underlying notional of $2.69 per share and to the trader's directional view on TMCI stock.
TMCI collar setup
The TMCI 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 TMCI near $2.69, the first option leg uses a $2.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TMCI 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 TMCI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.69 | long |
| Sell 1 | Call | $2.82 | N/A |
| Buy 1 | Put | $2.56 | N/A |
TMCI 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.
TMCI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TMCI. 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 TMCI
Collars on TMCI hedge an existing long TMCI 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.
TMCI thesis for this collar
The market-implied 1-standard-deviation range for TMCI extends from approximately $2.10 on the downside to $3.28 on the upside. A TMCI collar hedges an existing long TMCI 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 TMCI IV rank near 15.06% 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 TMCI at 76.20%. As a Healthcare name, TMCI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TMCI-specific events.
TMCI 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. TMCI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TMCI alongside the broader basket even when TMCI-specific fundamentals are unchanged. Always rebuild the position from current TMCI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TMCI?
- A collar on TMCI is the collar strategy applied to TMCI (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 TMCI stock trading near $2.69, the strikes shown on this page are snapped to the nearest listed TMCI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TMCI 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 TMCI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 76.20%), 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 TMCI collar?
- The breakeven for the TMCI 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 TMCI market-implied 1-standard-deviation expected move is approximately 21.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TMCI?
- Collars on TMCI hedge an existing long TMCI 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 TMCI implied volatility affect this collar?
- TMCI ATM IV is at 76.20% with IV rank near 15.06%, 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.