How are AXSM 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 AXSM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is $1,100.00 per contract and the computed maximum loss is -$900.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a AXSM collar?

The breakeven for the AXSM collar priced on this page is roughly $209.00 at expiration, derived from the August 14, 2026 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 AXSM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current AXSM implied volatility affect this collar?

AXSM ATM IV is at 40.10% with IV rank near 16.08%, 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.

AXSM Collar Strategy

AXSM (Axsome Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Axsome Therapeutics, Inc. is a biopharmaceutical company dedicated to discovering and advancing innovative treatments for a range of central nervous system (CNS) disorders within the United States. Its robust product pipeline features several promising candidates, including: AXS-05, an investigational therapy currently being developed for major depressive disorder and treatment-resistant depression. This compound is also in Phase III clinical evaluation for Alzheimer's disease agitation and has successfully finished Phase II trials investigating its use for smoking cessation. AXS-07, a novel, orally administered, rapidly-acting investigational medicine that employs multiple mechanisms of action. It has concluded two Phase III studies for the acute treatment of migraine attacks. AXS-12, a selective and potent norepinephrine reuptake inhibitor, which is presently undergoing a Phase III trial for narcolepsy.

AXSM (Axsome Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $11.05B, a beta of 0.60 versus the broader market, a 52-week range of 107.81-260.19, average daily share volume of 842K, a public-listing history dating back to 2015, approximately 1K full-time employees. These structural characteristics shape how AXSM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.60 indicates AXSM 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 AXSM?

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.

AXSM snapshot

As of August 14, 2026, spot at $213.90, ATM IV 40.10%, IV rank 16.08%, expected move 11.50%. The collar on AXSM below is built from the August 14, 2026 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 AXSM specifically: IV regime affects collar pricing on both sides; compressed AXSM IV at 40.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.50% (roughly $24.59 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 AXSM expiries trade a higher absolute premium for lower per-day decay. Position sizing on AXSM should anchor to the underlying notional of $213.90 per share and to the trader's directional view on AXSM stock.

AXSM collar setup

The AXSM collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AXSM at $213.90 on that close, the first option leg uses a $220.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AXSM 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 AXSM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$213.90	long
Sell 1	Call	$220.00	$8.95
Buy 1	Put	$200.00	$4.05

AXSM collar risk and reward

Net Premium / Debit: -$20,900.00
Max Profit (per contract): $1,100.00
Max Loss (per contract): -$900.00
Breakeven(s): $209.00
Risk / Reward Ratio: 1.222

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.

AXSM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on AXSM. 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	-100.0%	-$900.00
$47.30	-77.9%	-$900.00
$94.60	-55.8%	-$900.00
$141.89	-33.7%	-$900.00
$189.18	-11.6%	-$900.00
$236.48	+10.6%	+$1,100.00
$283.77	+32.7%	+$1,100.00
$331.06	+54.8%	+$1,100.00
$378.36	+76.9%	+$1,100.00
$425.65	+99.0%	+$1,100.00

When traders use collar on AXSM

Collars on AXSM hedge an existing long AXSM 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.

AXSM thesis for this collar

The market-implied 1-standard-deviation range for AXSM extends from approximately $189.31 on the downside to $238.49 on the upside. A AXSM collar hedges an existing long AXSM 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 AXSM IV rank near 16.08% 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 AXSM at 40.10%. As a Healthcare name, AXSM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AXSM-specific events.

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

Frequently asked questions

What is a collar on AXSM?: A collar on AXSM is the collar strategy applied to AXSM (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 AXSM stock at $213.90 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AXSM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are AXSM 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 AXSM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is $1,100.00 per contract and the computed maximum loss is -$900.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a AXSM collar?: The breakeven for the AXSM collar priced on this page is roughly $209.00 at expiration, derived from the August 14, 2026 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 AXSM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on AXSM?: Collars on AXSM hedge an existing long AXSM 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 AXSM implied volatility affect this collar?: AXSM ATM IV is at 40.10% with IV rank near 16.08%, 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.