CDXS Collar Strategy
CDXS (Codexis, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Codexis, Inc. discovers, develops, and sells enzymes and other proteins. It offers biocatalyst products and services; intermediate chemicals products that are used for further chemical processing; and Codex biocatalyst panels and kits that enable customers to perform chemistry screening. The company also provides biocatalyst screening and protein engineering services. In addition, it offers CodeEvolver protein engineering technology platform, which helps in developing and delivering biocatalysts that perform chemical transformations and enhance the efficiency and productivity of manufacturing processes. The company's platform is also used to discover novel biotherapeutic drug candidates for targeted human diseases, as well as for molecular biology and in vitro diagnostic enzymes. It sells its products to pharmaceutical manufacturers through its direct sales and business development force in the United States and Europe.
CDXS (Codexis, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $227.2M, a beta of 2.53 versus the broader market, a 52-week range of 0.96-3.87, average daily share volume of 2.4M, a public-listing history dating back to 2010, approximately 188 full-time employees. These structural characteristics shape how CDXS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.53 indicates CDXS 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 CDXS?
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 CDXS snapshot
As of May 15, 2026, spot at $2.45, ATM IV 240.20%, IV rank 45.29%, expected move 68.86%. The collar on CDXS 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 CDXS specifically: IV regime affects collar pricing on both sides; mid-range CDXS IV at 240.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 68.86% (roughly $1.69 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 CDXS expiries trade a higher absolute premium for lower per-day decay. Position sizing on CDXS should anchor to the underlying notional of $2.45 per share and to the trader's directional view on CDXS stock.
CDXS collar setup
The CDXS 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 CDXS near $2.45, the first option leg uses a $2.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CDXS 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 CDXS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.45 | long |
| Sell 1 | Call | $2.57 | N/A |
| Buy 1 | Put | $2.33 | N/A |
CDXS collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
CDXS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CDXS. 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.
When traders use collar on CDXS
Collars on CDXS hedge an existing long CDXS 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.
CDXS thesis for this collar
The market-implied 1-standard-deviation range for CDXS extends from approximately $0.76 on the downside to $4.14 on the upside. A CDXS collar hedges an existing long CDXS 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 CDXS IV rank near 45.29% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CDXS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, CDXS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CDXS-specific events.
CDXS 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. CDXS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CDXS alongside the broader basket even when CDXS-specific fundamentals are unchanged. Always rebuild the position from current CDXS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CDXS?
- A collar on CDXS is the collar strategy applied to CDXS (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 CDXS stock trading near $2.45, the strikes shown on this page are snapped to the nearest listed CDXS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CDXS 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 CDXS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 240.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CDXS collar?
- The breakeven for the CDXS collar priced on this page is no defined breakeven on the modeled curve 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 CDXS market-implied 1-standard-deviation expected move is approximately 68.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CDXS?
- Collars on CDXS hedge an existing long CDXS 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 CDXS implied volatility affect this collar?
- CDXS ATM IV is at 240.20% with IV rank near 45.29%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.