AGIO Collar Strategy
AGIO (Agios Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Agios Pharmaceuticals, Inc., a biopharmaceutical company, engages in the discovery and development of medicines in the field of cellular metabolism and adjacent areas of biology. The company offers PYRUKYND (mitapivat) an activator of both wild-type and a variety of mutant pyruvate kinase, PK, enzymes for the treatment of hemolytic anemias; and AG-946 that is in Phase I clinical study for treating hemolytic anemias and other indications. Agios Pharmaceuticals, Inc. was incorporated in 2007 and is headquartered in Cambridge, Massachusetts.
AGIO (Agios Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.71B, a beta of 0.58 versus the broader market, a 52-week range of 22.24-46, average daily share volume of 1.1M, a public-listing history dating back to 2013, approximately 486 full-time employees. These structural characteristics shape how AGIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.58 indicates AGIO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on AGIO?
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 AGIO snapshot
As of May 15, 2026, spot at $28.13, ATM IV 55.50%, IV rank 11.31%, expected move 15.91%. The collar on AGIO 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 AGIO specifically: IV regime affects collar pricing on both sides; compressed AGIO IV at 55.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.91% (roughly $4.48 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 AGIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on AGIO should anchor to the underlying notional of $28.13 per share and to the trader's directional view on AGIO stock.
AGIO collar setup
The AGIO 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 AGIO near $28.13, the first option leg uses a $29.54 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AGIO 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 AGIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.13 | long |
| Sell 1 | Call | $29.54 | N/A |
| Buy 1 | Put | $26.72 | N/A |
AGIO 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.
AGIO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AGIO. 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 AGIO
Collars on AGIO hedge an existing long AGIO 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.
AGIO thesis for this collar
The market-implied 1-standard-deviation range for AGIO extends from approximately $23.65 on the downside to $32.61 on the upside. A AGIO collar hedges an existing long AGIO 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 AGIO IV rank near 11.31% 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 AGIO at 55.50%. As a Healthcare name, AGIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AGIO-specific events.
AGIO 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. AGIO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AGIO alongside the broader basket even when AGIO-specific fundamentals are unchanged. Always rebuild the position from current AGIO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AGIO?
- A collar on AGIO is the collar strategy applied to AGIO (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 AGIO stock trading near $28.13, the strikes shown on this page are snapped to the nearest listed AGIO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AGIO 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 AGIO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 55.50%), 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 AGIO collar?
- The breakeven for the AGIO 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 AGIO market-implied 1-standard-deviation expected move is approximately 15.91%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AGIO?
- Collars on AGIO hedge an existing long AGIO 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 AGIO implied volatility affect this collar?
- AGIO ATM IV is at 55.50% with IV rank near 11.31%, 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.