How are CDNA 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 CDNA collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is $364.00 per contract and the computed maximum loss is -$136.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CDNA collar?

The breakeven for the CDNA collar priced on this page is roughly $61.36 at expiration, derived from the September 29, 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 CDNA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CDNA implied volatility affect this collar?

CDNA ATM IV is at 59.70% with IV rank near 15.18%, 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.

CDNA Collar Strategy

CDNA (CareDx, Inc), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

CareDx, Inc. is a global innovator specializing in the discovery, development, and commercialization of diagnostic and management tools designed for transplant recipients and their healthcare providers. The company's extensive portfolio features a range of specialized diagnostic solutions for organ monitoring, including: AlloSure Kidney, AlloSure Heart, and AlloSure Lung: Advanced tests employing donor-derived cell-free DNA (dd-cfDNA) technology to assess the health of kidney, heart, and lung transplants, respectively. AlloMap Heart: A gene expression-based solution specifically for heart transplant patients. AlloSeq cfDNA: A broader surveillance tool to measure dd-cfDNA levels in the blood. CareDx also provides cutting-edge human leukocyte antigen (HLA) typing technologies, such as TruSight HLA, an NGS-based high-resolution typing solution; Olerup SSP, which uses sequence-specific primer technology for HLA allele typing; QTYPE for precise HLA typing; and AlloSeq Tx, another high-resolution HLA typing offering. For stem cell transplant recipients, the company offers AlloSeq HCT for chimerism testing.

CDNA (CareDx, Inc) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $3.29B, a trailing P/E of 29.52, a beta of 2.43 versus the broader market, a 52-week range of 13.95-65.19, average daily share volume of 1.1M, a public-listing history dating back to 2014, approximately 763 full-time employees. These structural characteristics shape how CDNA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.43 indicates CDNA 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 CDNA?

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.

CDNA snapshot

As of September 29, 2026, spot at $63.91, ATM IV 59.70%, IV rank 15.18%, expected move 17.12%. The collar on CDNA below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 52-day expiry.

Why this collar structure on CDNA specifically: IV regime affects collar pricing on both sides; compressed CDNA IV at 59.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.12% (roughly $10.94 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CDNA expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDNA should anchor to the underlying notional of $63.91 per share and to the trader's directional view on CDNA stock.

CDNA collar setup

The CDNA collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With CDNA at $63.91 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDNA chain at a 52-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 CDNA shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$63.91	long
Sell 1	Call	$65.00	$6.80
Buy 1	Put	$60.00	$4.25

CDNA collar risk and reward

Net Premium / Debit: -$6,136.00
Max Profit (per contract): $364.00
Max Loss (per contract): -$136.00
Breakeven(s): $61.36
Risk / Reward Ratio: 2.676

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.

CDNA collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CDNA. 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%	-$136.00
$14.14	-77.9%	-$136.00
$28.27	-55.8%	-$136.00
$42.40	-33.7%	-$136.00
$56.53	-11.5%	-$136.00
$70.66	+10.6%	+$364.00
$84.79	+32.7%	+$364.00
$98.92	+54.8%	+$364.00
$113.05	+76.9%	+$364.00
$127.18	+99.0%	+$364.00

When traders use collar on CDNA

Collars on CDNA hedge an existing long CDNA 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.

CDNA thesis for this collar

The market-implied 1-standard-deviation range for CDNA extends from approximately $52.97 on the downside to $74.85 on the upside. A CDNA collar hedges an existing long CDNA 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 CDNA IV rank near 15.18% 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 CDNA at 59.70%. As a Healthcare name, CDNA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDNA-specific events.

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

Frequently asked questions

What is a collar on CDNA?: A collar on CDNA is the collar strategy applied to CDNA (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 CDNA stock at $63.91 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed CDNA chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CDNA 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 CDNA collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 59.70%), the computed maximum profit is $364.00 per contract and the computed maximum loss is -$136.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CDNA collar?: The breakeven for the CDNA collar priced on this page is roughly $61.36 at expiration, derived from the September 29, 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 CDNA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 17.12%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CDNA?: Collars on CDNA hedge an existing long CDNA 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 CDNA implied volatility affect this collar?: CDNA ATM IV is at 59.70% with IV rank near 15.18%, 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.