How are BHVN 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 BHVN collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 89.50%), the computed maximum profit is $75.50 per contract and the computed maximum loss is -$74.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BHVN collar?

The breakeven for the BHVN collar priced on this page is roughly $13.25 at expiration, derived from the November 13, 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 BHVN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BHVN implied volatility affect this collar?

BHVN ATM IV is at 89.50% with IV rank near 18.29%, 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.

BHVN Collar Strategy

BHVN (Biohaven Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NYSE.

Biohaven Ltd., a biopharmaceutical company, focuses on the discovery, development, and commercialization of treatments for immunology, neuroscience, and oncology therapeutic areas worldwide. It develops BHV-1300, which is in Phase 2 clinical trial to treat Graves' disease and rheumatoid arthritis; BHV-1400 that is in Phase 2 clinical trial for treating IgA nephropathy; BHV-1600, which is in Phase 1 clinical trial for the treatment of peripartum cardiomyopathy; BHV-8000 that is in Phase 3 clinical trial for treating Parkinson's disease; Opakalim, which is in Phase 3 clinical trial for the treatment of focal epilepsy; BHV-2100 that is in Phase 2 clinical trial for the treatment of pain disorders; and BHV-2000, which is in Phase 2 clinical trial for treating obesity. The company is also developing BHV-1510 that is in Phase 2 clinical trial for the treatment of advanced or metastatic epithelial tumors; and BHV-1530, which is in Phase 2 clinical trial for treating urothelial cancer and other tumors. In addition, its preclinical product pipeline includes BHV-1310 for treating myasthenia gravis; BHV-1320 for treating immune mediated-diseases; BHV-1450 for treating Pemphigus, MuSK MG, and LGI-1 Encephalitis; BHV-1420 for treating membranous nephropathy; BHV-1440 for treating Graves' disease and TED; BHV-6500 for treating type 1 diabetes; BHV-1490 for treating IgM neuropathy and Waldenstrom's; BHV-8100 for treating neurodegenerative diseases; and BHV-1955 for treating tinnitus. The company was formerly known as Biohaven Research Ltd. and changed its name to Biohaven Ltd. in September 2022. Biohaven Ltd. was incorporated in 2022 and is headquartered in New Haven, Connecticut.

BHVN (Biohaven Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.09B, a beta of 3.14 versus the broader market, a 52-week range of 7.81-18.24, average daily share volume of 2.8M, a public-listing history dating back to 2022, approximately 274 full-time employees. These structural characteristics shape how BHVN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 3.14 indicates BHVN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.

What is a collar on BHVN?

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.

BHVN snapshot

As of November 13, 2026, spot at $13.72, ATM IV 89.50%, IV rank 18.29%, expected move 25.66%. The collar on BHVN below is built from the November 13, 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 BHVN specifically: IV regime affects collar pricing on both sides; compressed BHVN IV at 89.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 25.66% (roughly $3.52 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 BHVN expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHVN should anchor to the underlying notional of $13.72 per share and to the trader's directional view on BHVN stock.

BHVN collar setup

The BHVN collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BHVN at $13.72 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHVN 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 BHVN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$13.72	long
Sell 1	Call	$14.00	$1.38
Buy 1	Put	$12.50	$0.90

BHVN collar risk and reward

Net Premium / Debit: -$1,324.50
Max Profit (per contract): $75.50
Max Loss (per contract): -$74.50
Breakeven(s): $13.25
Risk / Reward Ratio: 1.013

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.

BHVN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BHVN. 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%	-$74.50
$3.04	-77.8%	-$74.50
$6.07	-55.7%	-$74.50
$9.11	-33.6%	-$74.50
$12.14	-11.5%	-$74.50
$15.17	+10.6%	+$75.50
$18.20	+32.7%	+$75.50
$21.24	+54.8%	+$75.50
$24.27	+76.9%	+$75.50
$27.30	+99.0%	+$75.50

When traders use collar on BHVN

Collars on BHVN hedge an existing long BHVN 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.

BHVN thesis for this collar

The market-implied 1-standard-deviation range for BHVN extends from approximately $10.20 on the downside to $17.24 on the upside. A BHVN collar hedges an existing long BHVN 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 BHVN IV rank near 18.29% 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 BHVN at 89.50%. As a Healthcare name, BHVN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHVN-specific events.

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

Frequently asked questions

What is a collar on BHVN?: A collar on BHVN is the collar strategy applied to BHVN (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 BHVN stock at $13.72 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed BHVN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BHVN 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 BHVN collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 89.50%), the computed maximum profit is $75.50 per contract and the computed maximum loss is -$74.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BHVN collar?: The breakeven for the BHVN collar priced on this page is roughly $13.25 at expiration, derived from the November 13, 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 BHVN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 25.66%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BHVN?: Collars on BHVN hedge an existing long BHVN 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 BHVN implied volatility affect this collar?: BHVN ATM IV is at 89.50% with IV rank near 18.29%, 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.