DFTX Collar Strategy
DFTX (Definium Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Definium Therapeutics, Inc. operates as a clinical-stage biopharmaceutical firm dedicated to developing innovative therapeutic solutions for various brain health and neurological disorders. Its pipeline features key experimental drug candidates like MM120, which is currently undergoing Phase 3 clinical trials for generalized anxiety disorder (GAD) and attention deficit hyperactivity disorder (ADHD). Another significant compound, MM402 – an R-enantiomer of 3,4-methylenedioxymethamphetamine – is in Phase 1 trials, targeting the fundamental symptoms of autism spectrum disorder. The company maintains its headquarters in New York, New York.
DFTX (Definium Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $4.39B, a beta of 2.21 versus the broader market, a 52-week range of 12.882-49.2, average daily share volume of 2.0M, a public-listing history dating back to 2016, approximately 106 full-time employees. These structural characteristics shape how DFTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.21 indicates DFTX 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 DFTX?
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.
DFTX snapshot
As of November 13, 2026, spot at $32.16, ATM IV 74.80%, IV rank 16.32%, expected move 21.44%. The collar on DFTX below is built from the November 13, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on DFTX specifically: IV regime affects collar pricing on both sides; compressed DFTX IV at 74.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.44% (roughly $6.90 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DFTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on DFTX should anchor to the underlying notional of $32.16 per share and to the trader's directional view on DFTX stock.
DFTX collar setup
The DFTX collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DFTX at $32.16 on that close, the first option leg uses a $34.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DFTX chain at a 35-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 DFTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $32.16 | long |
| Sell 1 | Call | $34.00 | $2.33 |
| Buy 1 | Put | $31.00 | $2.63 |
DFTX collar risk and reward
- Net Premium / Debit
- -$3,246.00
- Max Profit (per contract)
- $154.00
- Max Loss (per contract)
- -$146.00
- Breakeven(s)
- $32.46
- Risk / Reward Ratio
- 1.055
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.
DFTX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DFTX. 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% | -$146.00 |
| $7.12 | -77.9% | -$146.00 |
| $14.23 | -55.8% | -$146.00 |
| $21.34 | -33.6% | -$146.00 |
| $28.45 | -11.5% | -$146.00 |
| $35.56 | +10.6% | +$154.00 |
| $42.67 | +32.7% | +$154.00 |
| $49.78 | +54.8% | +$154.00 |
| $56.89 | +76.9% | +$154.00 |
| $64.00 | +99.0% | +$154.00 |
When traders use collar on DFTX
Collars on DFTX hedge an existing long DFTX 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.
DFTX thesis for this collar
The market-implied 1-standard-deviation range for DFTX extends from approximately $25.26 on the downside to $39.06 on the upside. A DFTX collar hedges an existing long DFTX 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 DFTX IV rank near 16.32% 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 DFTX at 74.80%. As a Healthcare name, DFTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DFTX-specific events.
DFTX 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. DFTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DFTX alongside the broader basket even when DFTX-specific fundamentals are unchanged. Always rebuild the position from current DFTX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DFTX?
- A collar on DFTX is the collar strategy applied to DFTX (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 DFTX stock at $32.16 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed DFTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DFTX 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 DFTX collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 74.80%), the computed maximum profit is $154.00 per contract and the computed maximum loss is -$146.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DFTX collar?
- The breakeven for the DFTX collar priced on this page is roughly $32.46 at expiration, derived from the November 13, 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 DFTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DFTX?
- Collars on DFTX hedge an existing long DFTX 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 DFTX implied volatility affect this collar?
- DFTX ATM IV is at 74.80% with IV rank near 16.32%, 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.