ENTA Collar Strategy
ENTA (Enanta Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Enanta Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs for the treatment of viral infections and liver diseases. Its research and development disease targets include respiratory syncytial virus, SARS-CoV-2, human metapneumovirus, and hepatitis B virus. The company has a collaborative development and license agreement with Abbott Laboratories to identify, develop, and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir for the treatment of chronic hepatitis C virus. Enanta Pharmaceuticals, Inc. was founded in 1995 and is headquartered in Watertown, Massachusetts.
ENTA (Enanta Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $325.7M, a beta of 1.01 versus the broader market, a 52-week range of 5.04-17.15, average daily share volume of 165K, a public-listing history dating back to 2013, approximately 131 full-time employees. These structural characteristics shape how ENTA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places ENTA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on ENTA?
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 ENTA snapshot
As of May 15, 2026, spot at $13.45, ATM IV 62.30%, IV rank 8.62%, expected move 17.86%. The collar on ENTA 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 ENTA specifically: IV regime affects collar pricing on both sides; compressed ENTA IV at 62.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.86% (roughly $2.40 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 ENTA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ENTA should anchor to the underlying notional of $13.45 per share and to the trader's directional view on ENTA stock.
ENTA collar setup
The ENTA 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 ENTA near $13.45, the first option leg uses a $14.12 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ENTA 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 ENTA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $13.45 | long |
| Sell 1 | Call | $14.12 | N/A |
| Buy 1 | Put | $12.78 | N/A |
ENTA 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.
ENTA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ENTA. 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 ENTA
Collars on ENTA hedge an existing long ENTA 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.
ENTA thesis for this collar
The market-implied 1-standard-deviation range for ENTA extends from approximately $11.05 on the downside to $15.85 on the upside. A ENTA collar hedges an existing long ENTA 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 ENTA IV rank near 8.62% 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 ENTA at 62.30%. As a Healthcare name, ENTA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ENTA-specific events.
ENTA 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. ENTA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ENTA alongside the broader basket even when ENTA-specific fundamentals are unchanged. Always rebuild the position from current ENTA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ENTA?
- A collar on ENTA is the collar strategy applied to ENTA (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 ENTA stock trading near $13.45, the strikes shown on this page are snapped to the nearest listed ENTA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ENTA 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 ENTA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 62.30%), 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 ENTA collar?
- The breakeven for the ENTA 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 ENTA market-implied 1-standard-deviation expected move is approximately 17.86%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ENTA?
- Collars on ENTA hedge an existing long ENTA 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 ENTA implied volatility affect this collar?
- ENTA ATM IV is at 62.30% with IV rank near 8.62%, 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.