How are DSGN 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 DSGN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 111.10%), the computed maximum profit is $21.00 per contract and the computed maximum loss is -$79.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a DSGN collar?

The breakeven for the DSGN collar priced on this page is roughly $14.79 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 DSGN market-implied 1-standard-deviation expected move is approximately 31.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current DSGN implied volatility affect this collar?

DSGN ATM IV is at 111.10% with IV rank near 16.03%, 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.

DSGN Collar Strategy

DSGN (Design Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Design Therapeutics, Inc. a preclinical-stage biopharmaceutical company, engages in the development of therapies for the treatment of genetic diseases caused by nucleotide repeat expansions. The company's portfolio of products comprises Friedreich Ataxia, a monogenic, autosomal recessive, progressive multi-system disease that affects organ systems dependent on mitochondrial function, eventually leading to neurological, cardiac, and metabolic dysfunction; and Myotonic Dystrophy Type-1 (DM1), a dominantly-inherited, monogenic progressive neuromuscular disease affecting skeletal muscle, heart, brain, and other organs. It is also developing GeneTAC product candidate portfolio for the treatment of other nucleotide repeat expansion-driven monogenic diseases, such as Fragile X syndrome, spinocerebellar ataxias, amyotrophic lateral sclerosis, frontotemporal dementia, Huntington disease, and spinobulbar muscular atrophy. Design Therapeutics, Inc. was incorporated in 2017 and is headquartered in Carlsbad, California.

DSGN (Design Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $975.6M, a beta of 1.74 versus the broader market, a 52-week range of 3.105-17.25, average daily share volume of 381K, a public-listing history dating back to 2021, approximately 56 full-time employees. These structural characteristics shape how DSGN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.74 indicates DSGN 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 DSGN?

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 DSGN snapshot

As of May 15, 2026, spot at $14.38, ATM IV 111.10%, IV rank 16.03%, expected move 31.85%. The collar on DSGN 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 34-day expiry.

Why this collar structure on DSGN specifically: IV regime affects collar pricing on both sides; compressed DSGN IV at 111.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.85% (roughly $4.58 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DSGN expiries trade a higher absolute premium for lower per-day decay. Position sizing on DSGN should anchor to the underlying notional of $14.38 per share and to the trader's directional view on DSGN stock.

DSGN collar setup

The DSGN 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 DSGN near $14.38, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DSGN chain at a 34-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 DSGN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$14.38	long
Sell 1	Call	$15.00	$1.50
Buy 1	Put	$14.00	$1.91

DSGN collar risk and reward

Net Premium / Debit: -$1,479.00
Max Profit (per contract): $21.00
Max Loss (per contract): -$79.00
Breakeven(s): $14.79
Risk / Reward Ratio: 0.266

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.

DSGN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on DSGN. 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	-99.9%	-$79.00
$3.19	-77.8%	-$79.00
$6.37	-55.7%	-$79.00
$9.55	-33.6%	-$79.00
$12.72	-11.5%	-$79.00
$15.90	+10.6%	+$21.00
$19.08	+32.7%	+$21.00
$22.26	+54.8%	+$21.00
$25.44	+76.9%	+$21.00
$28.62	+99.0%	+$21.00

When traders use collar on DSGN

Collars on DSGN hedge an existing long DSGN 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.

DSGN thesis for this collar

The market-implied 1-standard-deviation range for DSGN extends from approximately $9.80 on the downside to $18.96 on the upside. A DSGN collar hedges an existing long DSGN 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 DSGN IV rank near 16.03% 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 DSGN at 111.10%. As a Healthcare name, DSGN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DSGN-specific events.

DSGN 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. DSGN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DSGN alongside the broader basket even when DSGN-specific fundamentals are unchanged. Always rebuild the position from current DSGN chain quotes before placing a trade.

Frequently asked questions

What is a collar on DSGN?: A collar on DSGN is the collar strategy applied to DSGN (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 DSGN stock trading near $14.38, the strikes shown on this page are snapped to the nearest listed DSGN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are DSGN 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 DSGN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 111.10%), the computed maximum profit is $21.00 per contract and the computed maximum loss is -$79.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a DSGN collar?: The breakeven for the DSGN collar priced on this page is roughly $14.79 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 DSGN market-implied 1-standard-deviation expected move is approximately 31.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on DSGN?: Collars on DSGN hedge an existing long DSGN 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 DSGN implied volatility affect this collar?: DSGN ATM IV is at 111.10% with IV rank near 16.03%, 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.