How are CGEM 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 CGEM collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 93.90%), the computed maximum profit is $137.00 per contract and the computed maximum loss is $37.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CGEM collar?

The breakeven for the CGEM collar priced on this page is no defined breakeven on the modeled curve 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 CGEM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CGEM implied volatility affect this collar?

CGEM ATM IV is at 93.90% with IV rank near 17.54%, 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.

CGEM Collar Strategy

CGEM (Cullinan Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Cullinan Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops therapies for autoimmune diseases and cancer in the United States. It engages in the development of CLN-978, a CD19xCD3 bispecific T cell engager for autoimmune diseases in Phase 1 clinical trials; Velinotamig, a BCMAxCD3 bispecific T cell in Phase 1 clinical trials in patients with autoimmune diseases; and CLN-049, a FLT3xCD3 bispecific T cell engager, which is in Phase 1 clinical trials in patients with relapsed and refractory acute myeloid leukemia or myelodysplastic syndrome. The company is also developing Zipalertinib, an orally available small-molecule, irreversible epidermal growth factor receptor inhibitor in Phase 2b portion of the REZILIENT1 clinical trial in patients with EGFR ex20ins non-small cell lung cancer. It has a license agreement with Chongqing Genrix Biopharmaceutical Co., Ltd to develop and commercialize velinotamig; a co-development agreement with Taiho Pharmaceutical Co., Ltd to develop zipalertinib; and a collaboration agreement with Adimab, LLC to discover and/or optimize antibodies. The company was formerly known as Cullinan Oncology, Inc. and changed its name to Cullinan Therapeutics, Inc. in April 2024. Cullinan Therapeutics, Inc. was incorporated in 2016 and is headquartered in Cambridge, Massachusetts.

CGEM (Cullinan Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $667.4M, a beta of -0.01 versus the broader market, a 52-week range of 7.93-23.19, average daily share volume of 857K, a public-listing history dating back to 2021, approximately 109 full-time employees. These structural characteristics shape how CGEM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of -0.01 indicates CGEM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on CGEM?

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.

CGEM snapshot

As of November 13, 2026, spot at $10.20, ATM IV 93.90%, IV rank 17.54%, expected move 26.92%. The collar on CGEM 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 CGEM specifically: IV regime affects collar pricing on both sides; compressed CGEM IV at 93.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.92% (roughly $2.75 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 CGEM expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGEM should anchor to the underlying notional of $10.20 per share and to the trader's directional view on CGEM stock.

CGEM collar setup

The CGEM 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 CGEM at $10.20 on that close, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGEM 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 CGEM shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$10.20	long
Sell 1	Call	$11.00	$2.27
Buy 1	Put	$10.00	$1.70

CGEM collar risk and reward

Net Premium / Debit: -$963.00
Max Profit (per contract): $137.00
Max Loss (per contract): $37.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: 3.703

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.

CGEM collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on CGEM. 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%	+$37.00
$2.26	-77.8%	+$37.00
$4.52	-55.7%	+$37.00
$6.77	-33.6%	+$37.00
$9.03	-11.5%	+$37.00
$11.28	+10.6%	+$137.00
$13.54	+32.7%	+$137.00
$15.79	+54.8%	+$137.00
$18.04	+76.9%	+$137.00
$20.30	+99.0%	+$137.00

When traders use collar on CGEM

Collars on CGEM hedge an existing long CGEM 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.

CGEM thesis for this collar

The market-implied 1-standard-deviation range for CGEM extends from approximately $7.45 on the downside to $12.95 on the upside. A CGEM collar hedges an existing long CGEM 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 CGEM IV rank near 17.54% 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 CGEM at 93.90%. As a Healthcare name, CGEM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGEM-specific events.

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

Frequently asked questions

What is a collar on CGEM?: A collar on CGEM is the collar strategy applied to CGEM (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 CGEM stock at $10.20 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed CGEM chain strike and the premiums come straight from that session's bid/ask midpoint.
How are CGEM 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 CGEM collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 93.90%), the computed maximum profit is $137.00 per contract and the computed maximum loss is $37.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CGEM collar?: The breakeven for the CGEM collar priced on this page is no defined breakeven on the modeled curve 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 CGEM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 26.92%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on CGEM?: Collars on CGEM hedge an existing long CGEM 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 CGEM implied volatility affect this collar?: CGEM ATM IV is at 93.90% with IV rank near 17.54%, 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.