CRSP Collar Strategy
CRSP (CRISPR Therapeutics AG), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
CRISPR Therapeutics AG, a gene editing company, focuses on developing gene-based medicines for serious diseases using its proprietary Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) platform. Its CRISPR/Cas9 is a gene editing technology that allows for precise directed changes to genomic DNA. The company has a portfolio of therapeutic programs across a range of disease areas, including hemoglobinopathies, oncology, regenerative medicine, and rare diseases. The company's lead product candidate is CTX001, an ex vivo CRISPR gene-edited therapy for treating patients suffering from transfusion-dependent beta-thalassemia or severe sickle cell disease in which a patient's hematopoietic stem cells are engineered to produce high levels of fetal hemoglobin in red blood cells. It also develops CTX110, a donor-derived gene-edited allogeneic CAR-T investigational therapy targeting cluster of differentiation 19 positive malignancies; CTX120, a donor-derived gene-edited allogeneic CAR-T investigational therapy targeting B-cell maturation antigen for the treatment of relapsed or refractory multiple myeloma; and CTX130, a donor-derived gene-edited allogeneic CAR-T investigational therapy targeting Cluster of Differentiation 70 to treat various solid tumors and hematologic malignancies. In addition, the company develops VCTX210, a gene-edited immune-evasive stem cell-derived product candidate for the treatment of treatment of type 1 diabetes; and pursues various in vivo gene-editing programs that target the liver, lung, muscle, and central nervous system diseases.
CRSP (CRISPR Therapeutics AG) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.09B, a beta of 1.74 versus the broader market, a 52-week range of 34.87-78.48, average daily share volume of 1.9M, a public-listing history dating back to 2016, approximately 393 full-time employees. These structural characteristics shape how CRSP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.74 indicates CRSP 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 CRSP?
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 CRSP snapshot
As of May 15, 2026, spot at $48.77, ATM IV 53.87%, IV rank 12.78%, expected move 15.45%. The collar on CRSP 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 28-day expiry.
Why this collar structure on CRSP specifically: IV regime affects collar pricing on both sides; compressed CRSP IV at 53.87% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.45% (roughly $7.53 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CRSP expiries trade a higher absolute premium for lower per-day decay. Position sizing on CRSP should anchor to the underlying notional of $48.77 per share and to the trader's directional view on CRSP stock.
CRSP collar setup
The CRSP 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 CRSP near $48.77, the first option leg uses a $51.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CRSP chain at a 28-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 CRSP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $48.77 | long |
| Sell 1 | Call | $51.00 | $1.88 |
| Buy 1 | Put | $46.00 | $1.63 |
CRSP collar risk and reward
- Net Premium / Debit
- -$4,852.00
- Max Profit (per contract)
- $248.00
- Max Loss (per contract)
- -$252.00
- Breakeven(s)
- $48.52
- Risk / Reward Ratio
- 0.984
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.
CRSP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CRSP. 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% | -$252.00 |
| $10.79 | -77.9% | -$252.00 |
| $21.57 | -55.8% | -$252.00 |
| $32.36 | -33.7% | -$252.00 |
| $43.14 | -11.5% | -$252.00 |
| $53.92 | +10.6% | +$248.00 |
| $64.70 | +32.7% | +$248.00 |
| $75.49 | +54.8% | +$248.00 |
| $86.27 | +76.9% | +$248.00 |
| $97.05 | +99.0% | +$248.00 |
When traders use collar on CRSP
Collars on CRSP hedge an existing long CRSP 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.
CRSP thesis for this collar
The market-implied 1-standard-deviation range for CRSP extends from approximately $41.24 on the downside to $56.30 on the upside. A CRSP collar hedges an existing long CRSP 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 CRSP IV rank near 12.78% 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 CRSP at 53.87%. As a Healthcare name, CRSP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CRSP-specific events.
CRSP 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. CRSP positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CRSP alongside the broader basket even when CRSP-specific fundamentals are unchanged. Always rebuild the position from current CRSP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CRSP?
- A collar on CRSP is the collar strategy applied to CRSP (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 CRSP stock trading near $48.77, the strikes shown on this page are snapped to the nearest listed CRSP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CRSP 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 CRSP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.87%), the computed maximum profit is $248.00 per contract and the computed maximum loss is -$252.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CRSP collar?
- The breakeven for the CRSP collar priced on this page is roughly $48.52 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 CRSP market-implied 1-standard-deviation expected move is approximately 15.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CRSP?
- Collars on CRSP hedge an existing long CRSP 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 CRSP implied volatility affect this collar?
- CRSP ATM IV is at 53.87% with IV rank near 12.78%, 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.