FHTX Collar Strategy
FHTX (Foghorn Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Foghorn Therapeutics Inc. is a clinical-stage biopharmaceutical company dedicated to discovering and developing medicines. Their focus is on addressing genetically determined vulnerabilities within the chromatin regulatory system. The company employs its exclusive "Gene Traffic Control" platform to pinpoint, validate, and strategize drug development for specific targets within this complex system. Its pipeline includes FHD-286, a small-molecule agent engineered to halt the enzymatic activity of BRG1 and BRM. This compound is being developed to treat metastatic uveal melanoma, as well as acute myeloid leukemia and myelodysplastic syndrome that have either recurred or are resistant to previous therapies. Another key candidate, FHD-609, is a small-molecule protein degrader designed to target BRD9, intended for patients diagnosed with synovial sarcoma.
FHTX (Foghorn Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $389.9M, a beta of 2.84 versus the broader market, a 52-week range of 3.27-6.95, average daily share volume of 216K, a public-listing history dating back to 2020, approximately 106 full-time employees. These structural characteristics shape how FHTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.84 indicates FHTX 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 FHTX?
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.
FHTX snapshot
As of August 14, 2026, spot at $6.28, ATM IV 277.30%, IV rank 56.87%, expected move 79.50%. The collar on FHTX below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on FHTX specifically: IV regime affects collar pricing on both sides; mid-range FHTX IV at 277.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 79.50% (roughly $4.99 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FHTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHTX should anchor to the underlying notional of $6.28 per share and to the trader's directional view on FHTX stock.
FHTX collar setup
The FHTX 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 FHTX at $6.28 on that close, the first option leg uses a $6.59 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHTX chain at a 35-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 FHTX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.28 | long |
| Sell 1 | Call | $6.59 | N/A |
| Buy 1 | Put | $5.97 | N/A |
FHTX 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.
FHTX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FHTX. 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 FHTX
Collars on FHTX hedge an existing long FHTX 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.
FHTX thesis for this collar
The market-implied 1-standard-deviation range for FHTX extends from approximately $1.29 on the downside to $11.27 on the upside. A FHTX collar hedges an existing long FHTX 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 FHTX IV rank near 56.87% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on FHTX should anchor more to the directional view and the expected-move geometry. As a Healthcare name, FHTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHTX-specific events.
FHTX 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. FHTX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHTX alongside the broader basket even when FHTX-specific fundamentals are unchanged. Always rebuild the position from current FHTX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FHTX?
- A collar on FHTX is the collar strategy applied to FHTX (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 FHTX stock at $6.28 on the most recent close, the strikes shown on this page are snapped to the nearest listed FHTX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FHTX 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 FHTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 277.30%), 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 FHTX collar?
- The breakeven for the FHTX collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 FHTX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 79.50%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FHTX?
- Collars on FHTX hedge an existing long FHTX 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 FHTX implied volatility affect this collar?
- FHTX ATM IV is at 277.30% with IV rank near 56.87%, 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.