DNTH Collar Strategy
DNTH (Dianthus Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Dianthus Therapeutics, Inc. operates as a clinical-stage biotechnology company that designs, develops, and delivers novel monoclonal antibodies for people living with severe autoimmune and inflammatory diseases. It develops DNTH103 that is in phase 1 clinical trails in patients with generalized myasthenia gravis, multifocal motor neuropathy, and chronic inflammatory demyelinating polyneuropathy. Dianthus Therapeutics, Inc. was incorporated in 2015 and is based in New York, New York.
DNTH (Dianthus Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.58B, a beta of 0.09 versus the broader market, a 52-week range of 16.64-96.5, average daily share volume of 958K, a public-listing history dating back to 2018, approximately 78 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 0.09 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.
Current DNTH snapshot
As of May 15, 2026, spot at $86.15, ATM IV 57.70%, IV rank 2.26%, expected move 16.54%. The collar on DNTH 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 98-day expiry.
Why this collar structure on DNTH specifically: IV regime affects collar pricing on both sides; compressed DNTH IV at 57.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 16.54% (roughly $14.25 on the underlying). The 98-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 $86.15 per share and to the trader's directional view on DNTH stock.
DNTH collar setup
The DNTH 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 DNTH near $86.15, the first option leg uses a $90.00 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 98-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 | $86.15 | long |
| Sell 1 | Call | $90.00 | $11.85 |
| Buy 1 | Put | $80.00 | $9.65 |
DNTH collar risk and reward
- Net Premium / Debit
- -$8,395.00
- Max Profit (per contract)
- $605.00
- Max Loss (per contract)
- -$395.00
- Breakeven(s)
- $83.95
- Risk / Reward Ratio
- 1.532
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% | -$395.00 |
| $19.06 | -77.9% | -$395.00 |
| $38.10 | -55.8% | -$395.00 |
| $57.15 | -33.7% | -$395.00 |
| $76.20 | -11.6% | -$395.00 |
| $95.25 | +10.6% | +$605.00 |
| $114.29 | +32.7% | +$605.00 |
| $133.34 | +54.8% | +$605.00 |
| $152.39 | +76.9% | +$605.00 |
| $171.43 | +99.0% | +$605.00 |
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 $71.90 on the downside to $100.40 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 2.26% 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 57.70%. 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 trading near $86.15, the strikes shown on this page are snapped to the nearest listed DNTH chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 57.70%), the computed maximum profit is $605.00 per contract and the computed maximum loss is -$395.00 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 $83.95 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 DNTH market-implied 1-standard-deviation expected move is approximately 16.54%; 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 57.70% with IV rank near 2.26%, 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.