EYPT Collar Strategy
EYPT (EyePoint Pharmaceuticals, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
EyePoint Pharmaceuticals, Inc., a pharmaceutical company, develops and commercializes ophthalmic products for the treatment of eye diseases in the United States, China, and the United Kingdom. The company provides ILUVIEN, an injectable sustained-release micro-insert for treatment of diabetic macular edema; YUTIQ, a fluocinolone acetonide intravitreal implant for intravitreal injection for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye; and DEXYCU, a dexamethasone intraocular suspension, for the treatment of post-operative ocular inflammation, including treatment following cataract surgery. It is also developing EYP-1901, a twice-yearly bioerodible formulation of tyrosine kinase inhibitor for the treatment of wet age-related macular degeneration, diabetic retinopathy, and retinal vein occlusion; and YUTIQ50 for the treatment of chronic non-infectious uveitis affecting the posterior segment of the eye. The company has strategic collaborations with Alimera Sciences, Inc., Bausch & Lomb, OncoSil Medical UK Limited, Ocumension Therapeutics, and Equinox Science, LLC. It also has a commercial alliance with ImprimisRx PA, Inc. for the joint promotion of DEXYCU for the treatment of post-operative inflammation following ocular surgery. The company was formerly known as pSivida Corp. and changed its name to EyePoint Pharmaceuticals, Inc. in March 2018.
EYPT (EyePoint Pharmaceuticals, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.13B, a beta of 1.77 versus the broader market, a 52-week range of 5.35-19.11, average daily share volume of 1.3M, a public-listing history dating back to 2005, approximately 165 full-time employees. These structural characteristics shape how EYPT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.77 indicates EYPT 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 EYPT?
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 EYPT snapshot
As of May 15, 2026, spot at $12.46, ATM IV 69.60%, IV rank 8.17%, expected move 19.95%. The collar on EYPT 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 EYPT specifically: IV regime affects collar pricing on both sides; compressed EYPT IV at 69.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.95% (roughly $2.49 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 EYPT expiries trade a higher absolute premium for lower per-day decay. Position sizing on EYPT should anchor to the underlying notional of $12.46 per share and to the trader's directional view on EYPT stock.
EYPT collar setup
The EYPT 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 EYPT near $12.46, the first option leg uses a $13.08 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EYPT 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 EYPT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.46 | long |
| Sell 1 | Call | $13.08 | N/A |
| Buy 1 | Put | $11.84 | N/A |
EYPT 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.
EYPT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EYPT. 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 EYPT
Collars on EYPT hedge an existing long EYPT 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.
EYPT thesis for this collar
The market-implied 1-standard-deviation range for EYPT extends from approximately $9.97 on the downside to $14.95 on the upside. A EYPT collar hedges an existing long EYPT 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 EYPT IV rank near 8.17% 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 EYPT at 69.60%. As a Healthcare name, EYPT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EYPT-specific events.
EYPT 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. EYPT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EYPT alongside the broader basket even when EYPT-specific fundamentals are unchanged. Always rebuild the position from current EYPT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EYPT?
- A collar on EYPT is the collar strategy applied to EYPT (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 EYPT stock trading near $12.46, the strikes shown on this page are snapped to the nearest listed EYPT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EYPT 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 EYPT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 69.60%), 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 EYPT collar?
- The breakeven for the EYPT 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 EYPT market-implied 1-standard-deviation expected move is approximately 19.95%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EYPT?
- Collars on EYPT hedge an existing long EYPT 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 EYPT implied volatility affect this collar?
- EYPT ATM IV is at 69.60% with IV rank near 8.17%, 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.