CGEM Collar Strategy
CGEM (Cullinan Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Cullinan Therapeutics, Inc. operates as a biopharmaceutical firm actively advancing its therapeutic candidates through clinical trials. This company is focused on developing innovative treatments primarily for cancer, including those that leverage the immune system (immuno-oncology). Its current roster of investigational drugs comprises CLN-978, CLN-619, Zipalertinib CLN-081/TAS6417, CLN-049, and CLN-617. Patrick A. Baeuerle founded the organization on September 15, 2016, and it is presently headquartered in Cambridge, Massachusetts.
CGEM (Cullinan Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.20B, a beta of -0.01 versus the broader market, a 52-week range of 5.68-19.94, average daily share volume of 934K, 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 August 14, 2026, spot at $20.02, ATM IV 113.10%, IV rank 19.50%, expected move 32.42%. The collar on CGEM 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 7-day expiry.
Why this collar structure on CGEM specifically: IV regime affects collar pricing on both sides; compressed CGEM IV at 113.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 32.42% (roughly $6.49 on the underlying). The 7-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 $20.02 per share and to the trader's directional view on CGEM stock.
CGEM collar setup
The CGEM 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 CGEM at $20.02 on that close, the first option leg uses a $21.00 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 7-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 | $20.02 | long |
| Sell 1 | Call | $21.00 | $2.29 |
| Buy 1 | Put | $19.00 | $2.16 |
CGEM collar risk and reward
- Net Premium / Debit
- -$1,989.00
- Max Profit (per contract)
- $111.00
- Max Loss (per contract)
- -$89.00
- Breakeven(s)
- $19.89
- Risk / Reward Ratio
- 1.247
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$89.00 |
| $4.44 | -77.8% | -$89.00 |
| $8.86 | -55.7% | -$89.00 |
| $13.29 | -33.6% | -$89.00 |
| $17.71 | -11.5% | -$89.00 |
| $22.14 | +10.6% | +$111.00 |
| $26.56 | +32.7% | +$111.00 |
| $30.99 | +54.8% | +$111.00 |
| $35.41 | +76.9% | +$111.00 |
| $39.84 | +99.0% | +$111.00 |
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 $13.53 on the downside to $26.51 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 19.50% 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 113.10%. 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 $20.02 on the August 14, 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 113.10%), the computed maximum profit is $111.00 per contract and the computed maximum loss is -$89.00 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 roughly $19.89 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 CGEM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.42%; 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 113.10% with IV rank near 19.50%, 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.