AKBA Collar Strategy
AKBA (Akebia Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Akebia Therapeutics, Inc., established in 2007 and headquartered in Cambridge, Massachusetts, is a biopharmaceutical company focused on discovering and commercializing therapies for patients suffering from kidney diseases. The firm's leading experimental drug, vadadustat, is an oral treatment currently in Phase III clinical trials. Its purpose is to address anemia resulting from chronic kidney disease (CKD) in adult patients, encompassing both those dependent on dialysis and those who are not. Akebia also markets Auryxia, a ferric citrate product used to manage serum phosphorus levels in adult CKD patients undergoing dialysis, and to treat iron deficiency anemia in adult CKD patients who are not on dialysis. The company has several key collaboration agreements: with Otsuka Pharmaceutical Co. Ltd. for vadadustat's development and commercialization across major regions including the United States, European Union, Russia, China, Australia, Canada, and the Middle East; with Mitsubishi Tanabe Pharma Corporation for vadadustat in Japan and other Asian territories; and a research and licensing deal with Janssen Pharmaceutica NV pertaining to hypoxia-inducible factor prolyl hydroxylase targeted compounds globally.
AKBA (Akebia Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $239.6M, a beta of 0.24 versus the broader market, a 52-week range of 0.823-3.375, average daily share volume of 4.5M, a public-listing history dating back to 2014, approximately 194 full-time employees. These structural characteristics shape how AKBA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.24 indicates AKBA 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 AKBA?
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.
AKBA snapshot
As of August 14, 2026, spot at $0.88, ATM IV 31.30%, IV rank 2.70%, expected move 8.97%. The collar on AKBA below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on AKBA specifically: IV regime affects collar pricing on both sides; compressed AKBA IV at 31.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.97% (roughly $0.08 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AKBA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AKBA should anchor to the underlying notional of $0.88 per share and to the trader's directional view on AKBA stock.
AKBA collar setup
The AKBA 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 AKBA at $0.88 on that close, the first option leg uses a $0.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AKBA chain at a 35-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 AKBA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $0.88 | long |
| Sell 1 | Call | $0.92 | N/A |
| Buy 1 | Put | $0.84 | N/A |
AKBA 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.
AKBA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AKBA. 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 AKBA
Collars on AKBA hedge an existing long AKBA 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.
AKBA thesis for this collar
The market-implied 1-standard-deviation range for AKBA extends from approximately $0.80 on the downside to $0.96 on the upside. A AKBA collar hedges an existing long AKBA 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 AKBA IV rank near 2.70% 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 AKBA at 31.30%. As a Healthcare name, AKBA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AKBA-specific events.
AKBA 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. AKBA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AKBA alongside the broader basket even when AKBA-specific fundamentals are unchanged. Always rebuild the position from current AKBA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AKBA?
- A collar on AKBA is the collar strategy applied to AKBA (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 AKBA stock at $0.88 on the most recent close, the strikes shown on this page are snapped to the nearest listed AKBA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AKBA 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 AKBA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 31.30%), 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 AKBA collar?
- The breakeven for the AKBA collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AKBA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AKBA?
- Collars on AKBA hedge an existing long AKBA 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 AKBA implied volatility affect this collar?
- AKBA ATM IV is at 31.30% with IV rank near 2.70%, 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.