How are AUPH 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 AUPH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $119.00 per contract and the computed maximum loss is -$81.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AUPH collar?

The breakeven for the AUPH collar priced on this page is roughly $16.81 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 AUPH market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AUPH implied volatility affect this collar?

AUPH ATM IV is at 53.10% with IV rank near 22.47%, 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.

AUPH Collar Strategy

AUPH (Aurinia Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Aurinia Pharmaceuticals Inc. operates as a commercial-stage biopharmaceutical company, specializing in the development and commercialization of innovative therapies. Its core mission is to address a variety of diseases for which current medical solutions are inadequate, serving patient populations across the United States and internationally. The company's flagship product is LUPKYNIS, an approved treatment designed for adult individuals suffering from active lupus nephritis. Furthermore, Aurinia maintains a strategic collaboration and licensing agreement with Otsuka Pharmaceutical Co., Ltd. The firm's main corporate office is located in Victoria, Canada.

AUPH (Aurinia Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.22B, a trailing P/E of 7.65, a beta of 1.43 versus the broader market, a 52-week range of 7.285-19.25, average daily share volume of 1.3M, a public-listing history dating back to 2014, approximately 130 full-time employees. These structural characteristics shape how AUPH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.43 indicates AUPH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.65 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.

What is a collar on AUPH?

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 AUPH snapshot

As of June 29, 2026, spot at $16.81, ATM IV 53.10%, IV rank 22.47%, expected move 15.22%. The collar on AUPH 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 18-day expiry.

Why this collar structure on AUPH specifically: IV regime affects collar pricing on both sides; compressed AUPH IV at 53.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.22% (roughly $2.56 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AUPH expiries trade a higher absolute premium for lower per-day decay. Position sizing on AUPH should anchor to the underlying notional of $16.81 per share and to the trader's directional view on AUPH stock.

AUPH collar setup

The AUPH 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 AUPH near $16.81, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AUPH chain at a 18-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 AUPH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$16.81	long
Sell 1	Call	$18.00	$0.35
Buy 1	Put	$16.00	$0.35

AUPH collar risk and reward

Net Premium / Debit: -$1,681.00
Max Profit (per contract): $119.00
Max Loss (per contract): -$81.00
Breakeven(s): $16.81
Risk / Reward Ratio: 1.469

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.

AUPH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AUPH. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$81.00
$3.73	-77.8%	-$81.00
$7.44	-55.7%	-$81.00
$11.16	-33.6%	-$81.00
$14.87	-11.5%	-$81.00
$18.59	+10.6%	+$119.00
$22.30	+32.7%	+$119.00
$26.02	+54.8%	+$119.00
$29.74	+76.9%	+$119.00
$33.45	+99.0%	+$119.00

When traders use collar on AUPH

Collars on AUPH hedge an existing long AUPH 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.

AUPH thesis for this collar

The market-implied 1-standard-deviation range for AUPH extends from approximately $14.25 on the downside to $19.37 on the upside. A AUPH collar hedges an existing long AUPH 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 AUPH IV rank near 22.47% 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 AUPH at 53.10%. As a Healthcare name, AUPH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AUPH-specific events.

AUPH 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. AUPH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AUPH alongside the broader basket even when AUPH-specific fundamentals are unchanged. Always rebuild the position from current AUPH chain quotes before placing a trade.

Frequently asked questions

What is a collar on AUPH?: A collar on AUPH is the collar strategy applied to AUPH (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 AUPH stock trading near $16.81, the strikes shown on this page are snapped to the nearest listed AUPH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are AUPH 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 AUPH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.10%), the computed maximum profit is $119.00 per contract and the computed maximum loss is -$81.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AUPH collar?: The breakeven for the AUPH collar priced on this page is roughly $16.81 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 AUPH market-implied 1-standard-deviation expected move is approximately 15.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AUPH?: Collars on AUPH hedge an existing long AUPH 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 AUPH implied volatility affect this collar?: AUPH ATM IV is at 53.10% with IV rank near 22.47%, 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.