FLGT Collar Strategy
FLGT (Fulgent Genetics, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Fulgent Genetics, Inc., together with its subsidiaries, provides COVID-19, molecular diagnostic, and genetic testing services to physicians and patients in the United States and internationally. The company offers genetic tests comprising Focus and Comprehensive oncology panels tests; Beacon carrier screening panels test for inherited conditions; solid tumor molecular profiling for somatic cancer testing; rapid whole genome testing for children in NICU and PICU; newborn genetic analysis panel; single front-line test to detect ataxia-related variants and repeat expansions through sequencing; picture genetics, a patient-initiated genetic testing; whole exome and clinical exome panel tests; whole genome, mutation, and repeat expansion testing services, as well as research service tests. It also provides next generation sequencing and reverse transcription polymerase chain reaction-based tests, as well as antigen-based diagnostic tests for the detection of SARS-CoV-2. In addition, the company offers flow cytometry, a cell analysis technique providing diagnosis, prognosis, and monitoring of malignancies; fluorescence in-situ hybridization for detecting and locating a specific DNA sequence on a chromosome; immunohistochemistry, an imaging technique used to visualize antigens in cells; cytogenetics, which analyzes the chromosome set for numerical and structural abnormalities; and molecular testing that includes hematopoietic and solid tumor molecular assays. The company serves insurance, hospitals, medical institutions, other laboratories, governmental bodies, payors, municipalities and large corporations, and patients. Fulgent Genetics has strategic partnership with Helio Health, Inc. to commercialize blood-based early cancer detection tests.
FLGT (Fulgent Genetics, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $453.3M, a beta of 0.88 versus the broader market, a 52-week range of 13.46-31.04, average daily share volume of 656K, a public-listing history dating back to 2016, approximately 1K full-time employees. These structural characteristics shape how FLGT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places FLGT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on FLGT?
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 FLGT snapshot
As of May 15, 2026, spot at $15.74, ATM IV 44.90%, IV rank 10.19%, expected move 12.87%. The collar on FLGT 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 FLGT specifically: IV regime affects collar pricing on both sides; compressed FLGT IV at 44.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.87% (roughly $2.03 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 FLGT expiries trade a higher absolute premium for lower per-day decay. Position sizing on FLGT should anchor to the underlying notional of $15.74 per share and to the trader's directional view on FLGT stock.
FLGT collar setup
The FLGT 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 FLGT near $15.74, the first option leg uses a $16.53 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FLGT 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 FLGT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $15.74 | long |
| Sell 1 | Call | $16.53 | N/A |
| Buy 1 | Put | $14.95 | N/A |
FLGT 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.
FLGT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FLGT. 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 FLGT
Collars on FLGT hedge an existing long FLGT 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.
FLGT thesis for this collar
The market-implied 1-standard-deviation range for FLGT extends from approximately $13.71 on the downside to $17.77 on the upside. A FLGT collar hedges an existing long FLGT 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 FLGT IV rank near 10.19% 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 FLGT at 44.90%. As a Healthcare name, FLGT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FLGT-specific events.
FLGT 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. FLGT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FLGT alongside the broader basket even when FLGT-specific fundamentals are unchanged. Always rebuild the position from current FLGT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FLGT?
- A collar on FLGT is the collar strategy applied to FLGT (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 FLGT stock trading near $15.74, the strikes shown on this page are snapped to the nearest listed FLGT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FLGT 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 FLGT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 44.90%), 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 FLGT collar?
- The breakeven for the FLGT 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 FLGT market-implied 1-standard-deviation expected move is approximately 12.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FLGT?
- Collars on FLGT hedge an existing long FLGT 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 FLGT implied volatility affect this collar?
- FLGT ATM IV is at 44.90% with IV rank near 10.19%, 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.