ADCT Collar Strategy
ADCT (ADC Therapeutics S.A.), in the Healthcare sector, (Biotechnology industry), listed on NYSE.
ADC Therapeutics SA, a commercial-stage biotechnology company, develops antibody drug conjugates (ADC) for patients suffering from hematological malignancies and solid tumors. Its flagship product ZYNLONTA that is in Phase II clinical trial for the treatment of relapsed or refractory diffuse large B-cell lymphoma (DLBCL) and follicular lymphoma; Phase III clinical trial in combination with rituximab to treat relapsed or refractory DLBCL in second-line transplant-ineligible patients; and Phase I clinical trial for treatment of relapsed or refractory non-hodgkin lymphoma (NHL). The company is also developing camidanlumab tesirine, an ADC that has completed Phase I clinical trial to treat relapsed or refractory NHL; in Phase II clinical trial in relapsed or refractory hodgkin lymphoma; and in Phase Ib clinical trial for selected advanced solid tumors. In addition, it develops ADCT-602, which is in Phase Ia clinical trial for treatment of acute lymphoblastic leukemia; ADCT-601 and ADCT-901 that are in Phase Ia clinical trial for treatment of various solid tumors; and preclinical product candidates, including ADCT-701 and ADCT-901 for the treatment of solid tumors. It has a collaboration and license agreement with Genmab A/S, Bergenbio AS, Synaffix B.V., Mitsubishi Tanabe Pharma Corporation, Overland Pharmaceuticals, and MedImmune Limited. ADC Therapeutics SA was incorporated in 2011 and is headquartered in Epalinges, Switzerland.
ADCT (ADC Therapeutics S.A.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $442.6M, a beta of 1.84 versus the broader market, a 52-week range of 1.69-4.98, average daily share volume of 1.0M, a public-listing history dating back to 2020, approximately 263 full-time employees. These structural characteristics shape how ADCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.84 indicates ADCT 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 ADCT?
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 ADCT snapshot
As of May 15, 2026, spot at $3.27, ATM IV 22.90%, IV rank 0.91%, expected move 6.57%. The collar on ADCT 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 ADCT specifically: IV regime affects collar pricing on both sides; compressed ADCT IV at 22.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.57% (roughly $0.21 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 ADCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADCT should anchor to the underlying notional of $3.27 per share and to the trader's directional view on ADCT stock.
ADCT collar setup
The ADCT 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 ADCT near $3.27, the first option leg uses a $3.43 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADCT 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 ADCT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.27 | long |
| Sell 1 | Call | $3.43 | N/A |
| Buy 1 | Put | $3.11 | N/A |
ADCT 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.
ADCT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ADCT. 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 ADCT
Collars on ADCT hedge an existing long ADCT 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.
ADCT thesis for this collar
The market-implied 1-standard-deviation range for ADCT extends from approximately $3.06 on the downside to $3.48 on the upside. A ADCT collar hedges an existing long ADCT 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 ADCT IV rank near 0.91% 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 ADCT at 22.90%. As a Healthcare name, ADCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADCT-specific events.
ADCT 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. ADCT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADCT alongside the broader basket even when ADCT-specific fundamentals are unchanged. Always rebuild the position from current ADCT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ADCT?
- A collar on ADCT is the collar strategy applied to ADCT (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 ADCT stock trading near $3.27, the strikes shown on this page are snapped to the nearest listed ADCT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ADCT 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 ADCT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.90%), 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 ADCT collar?
- The breakeven for the ADCT 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 ADCT market-implied 1-standard-deviation expected move is approximately 6.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ADCT?
- Collars on ADCT hedge an existing long ADCT 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 ADCT implied volatility affect this collar?
- ADCT ATM IV is at 22.90% with IV rank near 0.91%, 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.