EDIT Collar Strategy
EDIT (Editas Medicine, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Editas Medicine, Inc., a clinical stage genome editing company, focuses on developing transformative genomic medicines to treat a range of serious diseases. It develops a proprietary gene editing platform based on CRISPR technology. The company develops EDIT-101, which is in Phase 1/2 clinical trial for Leber Congenital Amaurosis 10 that leads to inherited childhood blindness. It also develops EDIT-102 for the treatment of Usher Syndrome 2A, which is a form of retinitis pigmentosa that also includes hearing loss; autosomal dominant retinitis pigmentosa, a progressive form of retinal degeneration; and EDIT-301 to treat sickle cell disease and transfusion-dependent beta-thalassemia. In addition, the company is developing gene-edited Natural Killer cell medicines to treat solid tumor cancers; alpha-beta T cells for multiple cancers; and gamma delta T cell therapies to treat cancer, as well as has an early discovery program to develop a therapy to treat a neurological disease. It has a research collaboration with Juno Therapeutics, Inc. to develop engineered T cells for cancer; strategic alliance and option agreement with Allergan Pharmaceuticals International Limited to discover, develop, and commercialize new gene editing medicines for a range of ocular disorders; and research collaboration with Asklepios BioPharmaceutical, Inc. to develop a therapy to treat a neurological disease, as well as research collaboration with AskBio.
EDIT (Editas Medicine, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $283.9M, a beta of 2.14 versus the broader market, a 52-week range of 1.345-4.537, average daily share volume of 1.6M, a public-listing history dating back to 2016, approximately 246 full-time employees. These structural characteristics shape how EDIT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.14 indicates EDIT 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 EDIT?
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 EDIT snapshot
As of May 15, 2026, spot at $2.60, ATM IV 95.10%, IV rank 34.34%, expected move 27.26%. The collar on EDIT 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 EDIT specifically: IV regime affects collar pricing on both sides; mid-range EDIT IV at 95.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 27.26% (roughly $0.71 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 EDIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on EDIT should anchor to the underlying notional of $2.60 per share and to the trader's directional view on EDIT stock.
EDIT collar setup
The EDIT 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 EDIT near $2.60, the first option leg uses a $2.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EDIT 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 EDIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $2.60 | long |
| Sell 1 | Call | $2.73 | N/A |
| Buy 1 | Put | $2.47 | N/A |
EDIT 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.
EDIT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EDIT. 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 EDIT
Collars on EDIT hedge an existing long EDIT 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.
EDIT thesis for this collar
The market-implied 1-standard-deviation range for EDIT extends from approximately $1.89 on the downside to $3.31 on the upside. A EDIT collar hedges an existing long EDIT 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 EDIT IV rank near 34.34% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on EDIT should anchor more to the directional view and the expected-move geometry. As a Healthcare name, EDIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EDIT-specific events.
EDIT 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. EDIT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EDIT alongside the broader basket even when EDIT-specific fundamentals are unchanged. Always rebuild the position from current EDIT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EDIT?
- A collar on EDIT is the collar strategy applied to EDIT (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 EDIT stock trading near $2.60, the strikes shown on this page are snapped to the nearest listed EDIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EDIT 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 EDIT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 95.10%), 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 EDIT collar?
- The breakeven for the EDIT collar priced on this page is no defined breakeven on the modeled curve 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 EDIT market-implied 1-standard-deviation expected move is approximately 27.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EDIT?
- Collars on EDIT hedge an existing long EDIT 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 EDIT implied volatility affect this collar?
- EDIT ATM IV is at 95.10% with IV rank near 34.34%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.