DNTH Collar Strategy
DNTH (Dianthus Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Dianthus Therapeutics, Inc., a clinical-stage biotechnology company, engages in the development of therapies for patients with severe autoimmune diseases. Its lead clinical-stage candidate, claseprubart, a monoclonal antibody engineered with extended half-life, improved potency, and high selectivity for only the active C1s complement protein; and DNTH212, a bifunctional fusion protein that targets plasmacytoid dendritic cell (pDC) BDCA2 to reduce Type 1 interferon production, while simultaneously inhibiting BAFF/APRIL to suppress B cell function. Dianthus Therapeutics, Inc. was founded in 2019 and is headquartered in New York, New York.
DNTH (Dianthus Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.29B, a beta of 0.08 versus the broader market, a 52-week range of 19.84-114.55, average daily share volume of 917K, a public-listing history dating back to 2018, approximately 92 full-time employees. These structural characteristics shape how DNTH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.08 indicates DNTH 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 DNTH?
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.
DNTH snapshot
As of August 14, 2026, spot at $115.72, ATM IV 56.10%, IV rank 1.68%, expected move 16.08%. The collar on DNTH 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 DNTH specifically: IV regime affects collar pricing on both sides; compressed DNTH IV at 56.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.08% (roughly $18.61 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 DNTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on DNTH should anchor to the underlying notional of $115.72 per share and to the trader's directional view on DNTH stock.
DNTH collar setup
The DNTH 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 DNTH at $115.72 on that close, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DNTH 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 DNTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $115.72 | long |
| Sell 1 | Call | $120.00 | $6.05 |
| Buy 1 | Put | $110.00 | $5.40 |
DNTH collar risk and reward
- Net Premium / Debit
- -$11,507.00
- Max Profit (per contract)
- $493.00
- Max Loss (per contract)
- -$507.00
- Breakeven(s)
- $115.07
- Risk / Reward Ratio
- 0.972
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.
DNTH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DNTH. 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% | -$507.00 |
| $25.60 | -77.9% | -$507.00 |
| $51.18 | -55.8% | -$507.00 |
| $76.77 | -33.7% | -$507.00 |
| $102.35 | -11.6% | -$507.00 |
| $127.94 | +10.6% | +$493.00 |
| $153.52 | +32.7% | +$493.00 |
| $179.11 | +54.8% | +$493.00 |
| $204.69 | +76.9% | +$493.00 |
| $230.28 | +99.0% | +$493.00 |
When traders use collar on DNTH
Collars on DNTH hedge an existing long DNTH 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.
DNTH thesis for this collar
The market-implied 1-standard-deviation range for DNTH extends from approximately $97.11 on the downside to $134.33 on the upside. A DNTH collar hedges an existing long DNTH 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 DNTH IV rank near 1.68% 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 DNTH at 56.10%. As a Healthcare name, DNTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DNTH-specific events.
DNTH 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. DNTH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DNTH alongside the broader basket even when DNTH-specific fundamentals are unchanged. Always rebuild the position from current DNTH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DNTH?
- A collar on DNTH is the collar strategy applied to DNTH (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 DNTH stock at $115.72 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DNTH chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DNTH 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 DNTH collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 56.10%), the computed maximum profit is $493.00 per contract and the computed maximum loss is -$507.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DNTH collar?
- The breakeven for the DNTH collar priced on this page is roughly $115.07 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 DNTH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 16.08%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DNTH?
- Collars on DNTH hedge an existing long DNTH 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 DNTH implied volatility affect this collar?
- DNTH ATM IV is at 56.10% with IV rank near 1.68%, 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.