BBIO Collar Strategy
BBIO (BridgeBio Pharma, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
BridgeBio Pharma, Inc. engages in the discovery, development, and delivery of various medicines for genetic diseases. The company has a pipeline of 30 development programs that include product candidates ranging from early discovery to late-stage development. Its products in development programs include AG10 and BBP-265, a small molecule stabilizer of transthyretin, or TTR that is in Phase 3 clinical trial for the treatment of TTR amyloidosis-cardiomyopathy, or ATTR-CM; BBP-831, a small molecule selective FGFR1-3 inhibitor, which is Phase 2 clinical trial to treat achondroplasia in pediatric patients; and BBP-631, an AAV5 gene transfer product candidate that is in Phase 2 clinical trial for the treatment of congenital adrenal hyperplasia, or CAH, driven by 21-hydroxylase deficiency, or 21OHD. The company also develops Encaleret, a small molecule antagonist of the calcium sensing receptor, or CaSR, which is in phase 2 proof-of-concept clinical trial for Autosomal Dominant Hypocalcemia Type 1, or ADH1; and BBP-711 for the treatment of hyperoxaluria, as well as patients suffering from recurrent kidney stones. In addition, it engages in developing products for Mendelian, oncology, and gene therapy diseases. BridgeBio Pharma, Inc. has license and collaboration agreements with the Leland Stanford Junior University; and The Regents of the University of California; Leidos Biomedical Research, Inc.
BBIO (BridgeBio Pharma, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $13.44B, a beta of 1.02 versus the broader market, a 52-week range of 31.77-84.94, average daily share volume of 2.7M, a public-listing history dating back to 2019, approximately 725 full-time employees. These structural characteristics shape how BBIO stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.02 places BBIO roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on BBIO?
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 BBIO snapshot
As of May 15, 2026, spot at $66.81, ATM IV 45.90%, IV rank 14.40%, expected move 13.16%. The collar on BBIO 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 BBIO specifically: IV regime affects collar pricing on both sides; compressed BBIO IV at 45.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.16% (roughly $8.79 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 BBIO expiries trade a higher absolute premium for lower per-day decay. Position sizing on BBIO should anchor to the underlying notional of $66.81 per share and to the trader's directional view on BBIO stock.
BBIO collar setup
The BBIO 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 BBIO near $66.81, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BBIO 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 BBIO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $66.81 | long |
| Sell 1 | Call | $70.00 | $2.48 |
| Buy 1 | Put | $62.50 | $1.88 |
BBIO collar risk and reward
- Net Premium / Debit
- -$6,621.00
- Max Profit (per contract)
- $379.00
- Max Loss (per contract)
- -$371.00
- Breakeven(s)
- $66.21
- Risk / Reward Ratio
- 1.022
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.
BBIO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BBIO. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$371.00 |
| $14.78 | -77.9% | -$371.00 |
| $29.55 | -55.8% | -$371.00 |
| $44.32 | -33.7% | -$371.00 |
| $59.09 | -11.5% | -$371.00 |
| $73.86 | +10.6% | +$379.00 |
| $88.64 | +32.7% | +$379.00 |
| $103.41 | +54.8% | +$379.00 |
| $118.18 | +76.9% | +$379.00 |
| $132.95 | +99.0% | +$379.00 |
When traders use collar on BBIO
Collars on BBIO hedge an existing long BBIO 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.
BBIO thesis for this collar
The market-implied 1-standard-deviation range for BBIO extends from approximately $58.02 on the downside to $75.60 on the upside. A BBIO collar hedges an existing long BBIO 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 BBIO IV rank near 14.40% 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 BBIO at 45.90%. As a Healthcare name, BBIO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BBIO-specific events.
BBIO 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. BBIO positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BBIO alongside the broader basket even when BBIO-specific fundamentals are unchanged. Always rebuild the position from current BBIO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BBIO?
- A collar on BBIO is the collar strategy applied to BBIO (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 BBIO stock trading near $66.81, the strikes shown on this page are snapped to the nearest listed BBIO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BBIO 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 BBIO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 45.90%), the computed maximum profit is $379.00 per contract and the computed maximum loss is -$371.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BBIO collar?
- The breakeven for the BBIO collar priced on this page is roughly $66.21 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 BBIO market-implied 1-standard-deviation expected move is approximately 13.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BBIO?
- Collars on BBIO hedge an existing long BBIO 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 BBIO implied volatility affect this collar?
- BBIO ATM IV is at 45.90% with IV rank near 14.40%, 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.