CGEN Collar Strategy
CGEN (Compugen Ltd.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Compugen Ltd., a clinical-stage therapeutic discovery and development company, researches, develops, and commercializes therapeutic and product candidates in Israel, the United States, and Europe. The company's immuno-oncology pipeline consists of COM701, an anti-PVRIG antibody that is in Phase I clinical study used for the treatment of solid tumors; COM902, a therapeutic antibody targeting TIGIT, which is in Phase I clinical study in patients with advanced malignancies as a monotherapy; Bapotulimab, a therapeutic antibody targeting ILDR2 that is in Phase I clinical study in patients with solid tumors; and AZD2936, a novel anti-TIGIT/PD-1 bispecific antibody, which is in Phase I/II clinical study in patients with advanced or metastatic non-small cell lung cancer. Its therapeutic pipeline also includes early-stage immuno-oncology programs focused primarily on myeloid targets. The company has collaboration agreement with Bayer Pharma AG for the research, development, and commercialization of antibody-based therapeutics against the company's immune checkpoint regulators; Bristol-Myers Squibb to evaluate the safety and tolerability of COM701 in combination with Bristol-Myers Squibb's PD-1 immune checkpoint inhibitor Opdivo in patients with advanced solid tumors; and Johns Hopkins School of Medicine to evaluate novel T cell and myeloid checkpoint targets. It has license agreement with AstraZeneca for the development of bi-specific and multi-specific immuno-oncology antibody products; and research collaboration with Johns Hopkins University for myeloid. Compugen Ltd. was incorporated in 1993 and is headquartered in Holon, Israel.
CGEN (Compugen Ltd.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $269.5M, a trailing P/E of 7.60, a beta of 2.80 versus the broader market, a 52-week range of 1.29-3.24, average daily share volume of 396K, a public-listing history dating back to 2000, approximately 74 full-time employees. These structural characteristics shape how CGEN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.80 indicates CGEN has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. The trailing P/E of 7.60 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on CGEN?
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 CGEN snapshot
As of May 15, 2026, spot at $2.79, ATM IV 67.30%, IV rank 10.95%, expected move 19.29%. The collar on CGEN 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 CGEN specifically: IV regime affects collar pricing on both sides; compressed CGEN IV at 67.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.29% (roughly $0.54 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 CGEN expiries trade a higher absolute premium for lower per-day decay. Position sizing on CGEN should anchor to the underlying notional of $2.79 per share and to the trader's directional view on CGEN stock.
CGEN collar setup
The CGEN 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 CGEN near $2.79, the first option leg uses a $2.93 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CGEN 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 CGEN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.79 | long |
| Sell 1 | Call | $2.93 | N/A |
| Buy 1 | Put | $2.65 | N/A |
CGEN 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.
CGEN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CGEN. 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 CGEN
Collars on CGEN hedge an existing long CGEN 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.
CGEN thesis for this collar
The market-implied 1-standard-deviation range for CGEN extends from approximately $2.25 on the downside to $3.33 on the upside. A CGEN collar hedges an existing long CGEN 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 CGEN IV rank near 10.95% 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 CGEN at 67.30%. As a Healthcare name, CGEN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CGEN-specific events.
CGEN 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. CGEN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CGEN alongside the broader basket even when CGEN-specific fundamentals are unchanged. Always rebuild the position from current CGEN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CGEN?
- A collar on CGEN is the collar strategy applied to CGEN (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 CGEN stock trading near $2.79, the strikes shown on this page are snapped to the nearest listed CGEN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CGEN 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 CGEN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 67.30%), 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 CGEN collar?
- The breakeven for the CGEN 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 CGEN market-implied 1-standard-deviation expected move is approximately 19.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CGEN?
- Collars on CGEN hedge an existing long CGEN 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 CGEN implied volatility affect this collar?
- CGEN ATM IV is at 67.30% with IV rank near 10.95%, 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.