AVIR Collar Strategy
AVIR (Atea Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Atea Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focused on discovering, developing, and commercializing antiviral therapeutics for patients suffering from viral infections. Its lead product candidate is AT-527, an antiviral drug candidate that is in Phase II clinical trial for the treatment of patients with COVID-19. The company also develops AT-752, an oral purine nucleoside prodrug product candidate, which has completed Phase Ia clinical trial for the treatment of dengue; AT-777, an NS5A inhibitor; AT-787, a co-formulated, oral, pan-genotypic fixed dose combination of AT-527 and AT-777 for the treatment of hepatitis C virous (HCV); and AT-281, a pharmaceutically acceptable salt for the treatment or prevention of an RNA viral infection, including dengue fever, yellow fever, Zika virus, and coronaviridae viral infection, as well as Ruzasvir, an investigational oral, pan genotypic NS5A inhibitor for the treatment of chronic HCV infection. It has a license agreement with Merck & Co, Inc. for development and commercialization of ruzasvir for the treatment of HCV. Atea Pharmaceuticals, Inc. was incorporated in 2012 and is headquartered in Boston, Massachusetts.
AVIR (Atea Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $364.1M, a beta of 0.38 versus the broader market, a 52-week range of 2.455-6.45, average daily share volume of 447K, a public-listing history dating back to 2020, approximately 56 full-time employees. These structural characteristics shape how AVIR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates AVIR 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 AVIR?
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 AVIR snapshot
As of May 15, 2026, spot at $4.11, ATM IV 102.10%, IV rank 23.31%, expected move 29.27%. The collar on AVIR 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 AVIR specifically: IV regime affects collar pricing on both sides; compressed AVIR IV at 102.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.27% (roughly $1.20 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 AVIR expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVIR should anchor to the underlying notional of $4.11 per share and to the trader's directional view on AVIR stock.
AVIR collar setup
The AVIR 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 AVIR near $4.11, the first option leg uses a $4.32 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVIR 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 AVIR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.11 | long |
| Sell 1 | Call | $4.32 | N/A |
| Buy 1 | Put | $3.90 | N/A |
AVIR 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.
AVIR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on AVIR. 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 AVIR
Collars on AVIR hedge an existing long AVIR 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.
AVIR thesis for this collar
The market-implied 1-standard-deviation range for AVIR extends from approximately $2.91 on the downside to $5.31 on the upside. A AVIR collar hedges an existing long AVIR 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 AVIR IV rank near 23.31% 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 AVIR at 102.10%. As a Healthcare name, AVIR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVIR-specific events.
AVIR 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. AVIR positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVIR alongside the broader basket even when AVIR-specific fundamentals are unchanged. Always rebuild the position from current AVIR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on AVIR?
- A collar on AVIR is the collar strategy applied to AVIR (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 AVIR stock trading near $4.11, the strikes shown on this page are snapped to the nearest listed AVIR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are AVIR 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 AVIR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 102.10%), 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 AVIR collar?
- The breakeven for the AVIR 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 AVIR market-implied 1-standard-deviation expected move is approximately 29.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on AVIR?
- Collars on AVIR hedge an existing long AVIR 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 AVIR implied volatility affect this collar?
- AVIR ATM IV is at 102.10% with IV rank near 23.31%, 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.