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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 83.30%), the computed maximum profit is $315.50 per contract and the computed maximum loss is -$84.50 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 $40.85 at expiration, derived from the August 14, 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 23.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DFTX implied volatility affect this collar?

DFTX ATM IV is at 83.30% with IV rank near 11.51%, 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.

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 $5.68B, a beta of 2.24 versus the broader market, a 52-week range of 12.882-49.2, average daily share volume of 2.6M, 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 2.24 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 August 14, 2026, spot at $42.37, ATM IV 83.30%, IV rank 11.51%, expected move 23.88%. The collar on DFTX below is built from the August 14, 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 83.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 23.88% (roughly $10.12 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 $42.37 per share and to the trader's directional view on DFTX stock.

DFTX collar setup

The DFTX collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DFTX at $42.37 on that close, the first option leg uses a $44.00 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	$42.37	long
Sell 1	Call	$44.00	$4.33
Buy 1	Put	$40.00	$2.80

DFTX collar risk and reward

Net Premium / Debit: -$4,084.50
Max Profit (per contract): $315.50
Max Loss (per contract): -$84.50
Breakeven(s): $40.85
Risk / Reward Ratio: 3.734

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.

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%	-$84.50
$9.38	-77.9%	-$84.50
$18.74	-55.8%	-$84.50
$28.11	-33.7%	-$84.50
$37.48	-11.5%	-$84.50
$46.85	+10.6%	+$315.50
$56.21	+32.7%	+$315.50
$65.58	+54.8%	+$315.50
$74.95	+76.9%	+$315.50
$84.31	+99.0%	+$315.50

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 $32.25 on the downside to $52.49 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 11.51% 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 83.30%. 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 $42.37 on the August 14, 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 83.30%), the computed maximum profit is $315.50 per contract and the computed maximum loss is -$84.50 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 $40.85 at expiration, derived from the August 14, 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 23.88%; 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 83.30% with IV rank near 11.51%, 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.