DICE Collar Strategy
DICE (DICE Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
DICE Therapeutics, Inc. is a biopharmaceutical firm focused on creating innovative oral drug candidates to address chronic immunological disorders and other medical conditions. The company leverages its proprietary DELSCAPE platform, engineered to identify highly selective oral small molecules that can modulate protein-protein interactions (PPIs) with efficacy comparable to conventional systemic biologics. Their flagship therapeutic asset is DC-806, an orally administered antagonist designed to inhibit interleukin-17, a pivotal pro-inflammatory signaling molecule widely recognized as a validated target across numerous immunology indications. Furthermore, DICE is advancing other oral treatment options, including therapies aimed at the α4β7 integrin for the management of inflammatory bowel diseases, and compounds targeting the αVβ1/αVβ6 integrin to treat idiopathic pulmonary fibrosis. Beyond these areas, the company also dedicates efforts to immuno-oncology, specifically developing antibody-based therapeutics. Established in 2013, DICE Therapeutics is headquartered in South San Francisco, California.
DICE (DICE Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.27B, a beta of 0.00 versus the broader market, a 52-week range of 15.08-47.9, average daily share volume of 1.9M, a public-listing history dating back to 2021, approximately 71 full-time employees. These structural characteristics shape how DICE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates DICE 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 DICE?
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.
DICE snapshot
As of September 29, 2026, spot at $24.81, ATM IV 78.60%, IV rank 20.79%, expected move 22.53%. The collar on DICE below is built from the 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 DICE specifically: IV regime affects collar pricing on both sides; compressed DICE IV at 78.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.53% (roughly $5.59 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 DICE expiries trade a higher absolute premium for lower per-day decay. Position sizing on DICE should anchor to the underlying notional of $24.81 per share and to the trader's directional view on DICE stock.
DICE collar setup
The DICE 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 DICE at $24.81 on that close, the first option leg uses a $26.05 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DICE 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 DICE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $24.81 | long |
| Sell 1 | Call | $26.05 | N/A |
| Buy 1 | Put | $23.57 | N/A |
DICE collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
DICE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DICE. 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.
When traders use collar on DICE
Collars on DICE hedge an existing long DICE 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.
DICE thesis for this collar
The market-implied 1-standard-deviation range for DICE extends from approximately $19.22 on the downside to $30.40 on the upside. A DICE collar hedges an existing long DICE 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 DICE IV rank near 20.79% 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 DICE at 78.60%. As a Healthcare name, DICE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DICE-specific events.
DICE 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. DICE positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DICE alongside the broader basket even when DICE-specific fundamentals are unchanged. Always rebuild the position from current DICE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DICE?
- A collar on DICE is the collar strategy applied to DICE (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 DICE stock at $24.81 on the most recent close, the strikes shown on this page are snapped to the nearest listed DICE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DICE 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 DICE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.60%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DICE collar?
- The breakeven for the DICE collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 DICE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DICE?
- Collars on DICE hedge an existing long DICE 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 DICE implied volatility affect this collar?
- DICE ATM IV is at 78.60% with IV rank near 20.79%, 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.