How are BEAM 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 BEAM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.10%), the computed maximum profit is $96.00 per contract and the computed maximum loss is -$204.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BEAM collar?

The breakeven for the BEAM collar priced on this page is roughly $27.04 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 BEAM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BEAM implied volatility affect this collar?

BEAM ATM IV is at 68.10% with IV rank near 13.14%, 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.

BEAM Collar Strategy

BEAM (Beam Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Beam Therapeutics Inc., founded in 2017 and based in Cambridge, Massachusetts, operates as a pioneering biopharmaceutical firm. Its core mission involves engineering precise genetic remedies to tackle a spectrum of severe human ailments, primarily within the United States. The company's developmental portfolio features several key candidates: BEAM-101 is being advanced to treat both sickle cell disease and beta thalassemia. BEAM-102 is specifically designed for addressing sickle cell disease. BEAM-201, an allogeneic chimeric antigen receptor T-cell therapy, is under investigation for individuals suffering from relapsed or refractory T-cell acute lymphoblastic leukemia. BEAM-301 is a liver-targeted candidate aimed at patients afflicted with Glycogen Storage Disease Type Ia.

BEAM (Beam Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.75B, a beta of 2.21 versus the broader market, a 52-week range of 15.6-38.26, average daily share volume of 2.2M, a public-listing history dating back to 2020, approximately 540 full-time employees. These structural characteristics shape how BEAM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.21 indicates BEAM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. BEAM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BEAM?

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.

BEAM snapshot

As of August 14, 2026, spot at $26.74, ATM IV 68.10%, IV rank 13.14%, expected move 19.52%. The collar on BEAM 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 BEAM specifically: IV regime affects collar pricing on both sides; compressed BEAM IV at 68.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.52% (roughly $5.22 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 BEAM expiries trade a higher absolute premium for lower per-day decay. Position sizing on BEAM should anchor to the underlying notional of $26.74 per share and to the trader's directional view on BEAM stock.

BEAM collar setup

The BEAM 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 BEAM at $26.74 on that close, the first option leg uses a $28.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BEAM 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 BEAM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$26.74	long
Sell 1	Call	$28.00	$1.45
Buy 1	Put	$25.00	$1.75

BEAM collar risk and reward

Net Premium / Debit: -$2,704.00
Max Profit (per contract): $96.00
Max Loss (per contract): -$204.00
Breakeven(s): $27.04
Risk / Reward Ratio: 0.471

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.

BEAM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BEAM. 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%	-$204.00
$5.92	-77.9%	-$204.00
$11.83	-55.7%	-$204.00
$17.74	-33.6%	-$204.00
$23.66	-11.5%	-$204.00
$29.57	+10.6%	+$96.00
$35.48	+32.7%	+$96.00
$41.39	+54.8%	+$96.00
$47.30	+76.9%	+$96.00
$53.21	+99.0%	+$96.00

When traders use collar on BEAM

Collars on BEAM hedge an existing long BEAM 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.

BEAM thesis for this collar

The market-implied 1-standard-deviation range for BEAM extends from approximately $21.52 on the downside to $31.96 on the upside. A BEAM collar hedges an existing long BEAM 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 BEAM IV rank near 13.14% 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 BEAM at 68.10%. As a Healthcare name, BEAM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BEAM-specific events.

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

Frequently asked questions

What is a collar on BEAM?: A collar on BEAM is the collar strategy applied to BEAM (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 BEAM stock at $26.74 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BEAM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BEAM 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 BEAM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 68.10%), the computed maximum profit is $96.00 per contract and the computed maximum loss is -$204.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BEAM collar?: The breakeven for the BEAM collar priced on this page is roughly $27.04 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 BEAM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 19.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BEAM?: Collars on BEAM hedge an existing long BEAM 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 BEAM implied volatility affect this collar?: BEAM ATM IV is at 68.10% with IV rank near 13.14%, 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.