How are COGT 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 COGT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), the computed maximum profit is $240.00 per contract and the computed maximum loss is -$160.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a COGT collar?

The breakeven for the COGT collar priced on this page is roughly $38.60 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 COGT market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current COGT implied volatility affect this collar?

COGT ATM IV is at 46.30% with IV rank near 0.39%, 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.

COGT Collar Strategy

COGT (Cogent Biosciences, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Cogent Biosciences, Inc. is a biotechnology firm dedicated to creating targeted treatments for illnesses rooted in specific genetic anomalies. The company's primary therapeutic candidate is CGT9486, a selective tyrosine kinase inhibitor engineered to block the KIT D816V mutation, a key driver of systemic mastocytosis, along with other KIT exon 17 mutations observed in individuals suffering from advanced gastrointestinal stromal tumors (GIST). Furthermore, Cogent holds a licensing pact with Plexxikon Inc., granting it rights for the investigation, advancement, and marketing of bezuclastinib. Previously known as Unum Therapeutics Inc., the company adopted its current name, Cogent Biosciences, Inc., in October 2020. Established in 2014, Cogent Biosciences is headquartered in Cambridge, Massachusetts.

COGT (Cogent Biosciences, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.51B, a beta of 0.35 versus the broader market, a 52-week range of 7.07-43.73, average daily share volume of 2.4M, a public-listing history dating back to 2018, approximately 205 full-time employees. These structural characteristics shape how COGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.35 indicates COGT 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 COGT?

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 COGT snapshot

As of June 30, 2026, spot at $38.75, ATM IV 46.30%, IV rank 0.39%, expected move 13.27%. The collar on COGT 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 17-day expiry.

Why this collar structure on COGT specifically: IV regime affects collar pricing on both sides; compressed COGT IV at 46.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.27% (roughly $5.14 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated COGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on COGT should anchor to the underlying notional of $38.75 per share and to the trader's directional view on COGT stock.

COGT collar setup

The COGT 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 COGT near $38.75, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COGT chain at a 17-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 COGT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$38.75	long
Sell 1	Call	$41.00	$1.08
Buy 1	Put	$37.00	$0.93

COGT collar risk and reward

Net Premium / Debit: -$3,860.00
Max Profit (per contract): $240.00
Max Loss (per contract): -$160.00
Breakeven(s): $38.60
Risk / Reward Ratio: 1.500

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.

COGT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on COGT. 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%	-$160.00
$8.58	-77.9%	-$160.00
$17.14	-55.8%	-$160.00
$25.71	-33.7%	-$160.00
$34.28	-11.5%	-$160.00
$42.84	+10.6%	+$240.00
$51.41	+32.7%	+$240.00
$59.98	+54.8%	+$240.00
$68.54	+76.9%	+$240.00
$77.11	+99.0%	+$240.00

When traders use collar on COGT

Collars on COGT hedge an existing long COGT 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.

COGT thesis for this collar

The market-implied 1-standard-deviation range for COGT extends from approximately $33.61 on the downside to $43.89 on the upside. A COGT collar hedges an existing long COGT 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 COGT IV rank near 0.39% 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 COGT at 46.30%. As a Healthcare name, COGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COGT-specific events.

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

Frequently asked questions

What is a collar on COGT?: A collar on COGT is the collar strategy applied to COGT (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 COGT stock trading near $38.75, the strikes shown on this page are snapped to the nearest listed COGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are COGT 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 COGT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), the computed maximum profit is $240.00 per contract and the computed maximum loss is -$160.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a COGT collar?: The breakeven for the COGT collar priced on this page is roughly $38.60 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 COGT market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on COGT?: Collars on COGT hedge an existing long COGT 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 COGT implied volatility affect this collar?: COGT ATM IV is at 46.30% with IV rank near 0.39%, 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.