FDMT Collar Strategy
FDMT (4D Molecular Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
4D Molecular Therapeutics, Inc. is a clinical-stage gene therapy company that engineers therapeutic agents by leveraging its proprietary adeno-associated virus (AAV) vector technology. The company's developmental efforts are concentrated across a trio of therapeutic fields: ophthalmology (eye conditions), cardiology (heart ailments), and pulmonology (respiratory disorders). Within its active pipeline, three specific product candidates have advanced into clinical trial phases, all currently undergoing Phase 1/2 clinical assessment: 4D-125 is being evaluated for the treatment of X-linked retinitis pigmentosa. 4D-110 targets choroideremia. 4D-310 is focused on addressing Fabry disease. Beyond these, two Investigational New Drug (IND) candidates are in development: 4D-150, aimed at combating wet age-related macular degeneration, and 4D-710, designed to tackle cystic fibrosis lung disease. To advance its mission, 4D Molecular Therapeutics, Inc. actively engages in research and development partnerships with entities such as uniQure, CRF, Roche, and CFF. The firm commenced operations in 2013 and maintains its headquarters in Emeryville, California.
FDMT (4D Molecular Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $620.5M, a beta of 2.69 versus the broader market, a 52-week range of 5.97-14, average daily share volume of 795K, a public-listing history dating back to 2020, approximately 196 full-time employees. These structural characteristics shape how FDMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.69 indicates FDMT 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 FDMT?
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.
FDMT snapshot
As of August 14, 2026, spot at $12.09, ATM IV 105.00%, IV rank 20.99%, expected move 30.10%. The collar on FDMT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this collar structure on FDMT specifically: IV regime affects collar pricing on both sides; compressed FDMT IV at 105.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 30.10% (roughly $3.64 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDMT should anchor to the underlying notional of $12.09 per share and to the trader's directional view on FDMT stock.
FDMT collar setup
The FDMT collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FDMT at $12.09 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDMT chain at a 7-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 FDMT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.09 | long |
| Sell 1 | Call | $13.00 | $1.15 |
| Buy 1 | Put | $11.00 | $1.24 |
FDMT collar risk and reward
- Net Premium / Debit
- -$1,218.00
- Max Profit (per contract)
- $82.00
- Max Loss (per contract)
- -$118.00
- Breakeven(s)
- $12.18
- Risk / Reward Ratio
- 0.695
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.
FDMT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FDMT. 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% | -$118.00 |
| $2.68 | -77.8% | -$118.00 |
| $5.35 | -55.7% | -$118.00 |
| $8.03 | -33.6% | -$118.00 |
| $10.70 | -11.5% | -$118.00 |
| $13.37 | +10.6% | +$82.00 |
| $16.04 | +32.7% | +$82.00 |
| $18.71 | +54.8% | +$82.00 |
| $21.39 | +76.9% | +$82.00 |
| $24.06 | +99.0% | +$82.00 |
When traders use collar on FDMT
Collars on FDMT hedge an existing long FDMT 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.
FDMT thesis for this collar
The market-implied 1-standard-deviation range for FDMT extends from approximately $8.45 on the downside to $15.73 on the upside. A FDMT collar hedges an existing long FDMT 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 FDMT IV rank near 20.99% 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 FDMT at 105.00%. As a Healthcare name, FDMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDMT-specific events.
FDMT 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. FDMT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDMT alongside the broader basket even when FDMT-specific fundamentals are unchanged. Always rebuild the position from current FDMT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FDMT?
- A collar on FDMT is the collar strategy applied to FDMT (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 FDMT stock at $12.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FDMT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FDMT 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 FDMT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 105.00%), the computed maximum profit is $82.00 per contract and the computed maximum loss is -$118.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDMT collar?
- The breakeven for the FDMT collar priced on this page is roughly $12.18 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The FDMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 30.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FDMT?
- Collars on FDMT hedge an existing long FDMT 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 FDMT implied volatility affect this collar?
- FDMT ATM IV is at 105.00% with IV rank near 20.99%, 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.