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 60.29%), the computed maximum profit is $358.50 per contract and the computed maximum loss is -$241.50 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 $54.42 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 17.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CRSP implied volatility affect this collar?

CRSP ATM IV is at 60.29% with IV rank near 31.56%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

CRSP Collar Strategy

CRSP (CRISPR Therapeutics AG), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

CRISPR Therapeutics AG (CRSP) is a biotechnology firm dedicated to pioneering gene-based medicines for severe diseases. The company achieves this through its exclusive Clustered Regularly Interspaced Short Palindromic Repeats (CRISPR)/CRISPR-associated protein 9 (Cas9) technology, which enables precise and targeted alterations to an organism's genetic code. Its extensive pipeline includes therapeutic candidates spanning multiple medical areas, such as blood disorders (hemoglobinopathies), various cancers (oncology), regenerative medicine, and rare conditions. The company's flagship investigational therapy is CTX001, an ex vivo CRISPR gene-edited treatment. This therapy aims to benefit patients with transfusion-dependent beta-thalassemia or severe sickle cell disease by modifying their own hematopoietic stem cells to markedly boost the production of fetal hemoglobin within red blood cells. CRISPR Therapeutics is also advancing several other genetically engineered allogeneic (donor-sourced) CAR-T investigational therapies: CTX110, designed to combat cluster of differentiation 19-positive malignancies; CTX120, which targets B-cell maturation antigen for multiple myeloma that has relapsed or proven resistant to previous treatments; and CTX130, focused on Cluster of Differentiation 70 for a spectrum of solid tumors and blood cancers.

CRSP (CRISPR Therapeutics AG) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.30B, a beta of 1.70 versus the broader market, a 52-week range of 44.12-78.48, average daily share volume of 1.7M, 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 1.70 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 June 30, 2026, spot at $54.84, ATM IV 60.29%, IV rank 31.56%, expected move 17.28%. 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 31-day expiry.

Why this collar structure on CRSP specifically: IV regime affects collar pricing on both sides; mid-range CRSP IV at 60.29% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.28% (roughly $9.48 on the underlying). The 31-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 $54.84 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 $54.84, the first option leg uses a $58.00 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 31-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	$54.84	long
Sell 1	Call	$58.00	$2.78
Buy 1	Put	$52.00	$2.35

CRSP collar risk and reward

Net Premium / Debit: -$5,441.50
Max Profit (per contract): $358.50
Max Loss (per contract): -$241.50
Breakeven(s): $54.42
Risk / Reward Ratio: 1.484

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.

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%	-$241.50
$12.13	-77.9%	-$241.50
$24.26	-55.8%	-$241.50
$36.38	-33.7%	-$241.50
$48.51	-11.5%	-$241.50
$60.63	+10.6%	+$358.50
$72.76	+32.7%	+$358.50
$84.88	+54.8%	+$358.50
$97.00	+76.9%	+$358.50
$109.13	+99.0%	+$358.50

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 $45.36 on the downside to $64.32 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 31.56% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on CRSP should anchor more to the directional view and the expected-move geometry. 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 $54.84, 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 60.29%), the computed maximum profit is $358.50 per contract and the computed maximum loss is -$241.50 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 $54.42 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 17.28%; 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 60.29% with IV rank near 31.56%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.