How are GH 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 GH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 59.60%), the computed maximum profit is $513.00 per contract and the computed maximum loss is -$487.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a GH collar?

The breakeven for the GH collar priced on this page is roughly $94.87 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 GH market-implied 1-standard-deviation expected move is approximately 17.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current GH implied volatility affect this collar?

GH ATM IV is at 59.60% with IV rank near 14.84%, 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.

GH Collar Strategy

GH (Guardant Health, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.

Guardant Health, Inc., a precision oncology company, provides blood tests, data sets, and analytics in the United States and internationally. The company offers Guardant360, Guardant360 LDT, Guardant360 CDx, and GuardantOMNI liquid biopsy-based tests for advanced stage cancer; and GuardantINFORM, an in-silico research platform that comprise a clinical-genomic liquid biopsy dataset of advanced cancer patients. It is also developing LUNAR-2 test for the early detection of colorectal cancer in asymptomatic individuals eligible; and GuardantConnect, an integrated software-based solution for clinical and biopharmaceutical customers seeking to connect patients tested with the Guardant360 assay with actionable alterations with potentially relevant clinical trials. In addition, the company offers Guardant Reveal Test for neoadjuvant and adjuvant treatment selection in early-stage cancer patients; Guardant360 tissue genotyping product; and Guardant-19 for use in the detection of the novel coronavirus. Further, it offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, and kits fulfillment related services to biopharmaceutical companies and medical institutions. The company was incorporated in 2011 and is headquartered in Redwood City, California.

GH (Guardant Health, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $13.06B, a beta of 1.49 versus the broader market, a 52-week range of 36.36-120.74, average daily share volume of 2.1M, a public-listing history dating back to 2018, approximately 2K full-time employees. These structural characteristics shape how GH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.49 indicates GH 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 GH?

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 GH snapshot

As of May 15, 2026, spot at $95.32, ATM IV 59.60%, IV rank 14.84%, expected move 17.09%. The collar on GH 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 63-day expiry.

Why this collar structure on GH specifically: IV regime affects collar pricing on both sides; compressed GH IV at 59.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.09% (roughly $16.29 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated GH expiries trade a higher absolute premium for lower per-day decay. Position sizing on GH should anchor to the underlying notional of $95.32 per share and to the trader's directional view on GH stock.

GH collar setup

The GH 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 GH near $95.32, the first option leg uses a $100.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GH chain at a 63-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 GH shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$95.32	long
Sell 1	Call	$100.00	$7.20
Buy 1	Put	$90.00	$6.75

GH collar risk and reward

Net Premium / Debit: -$9,487.00
Max Profit (per contract): $513.00
Max Loss (per contract): -$487.00
Breakeven(s): $94.87
Risk / Reward Ratio: 1.053

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.

GH collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on GH. 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	-100.0%	-$487.00
$21.08	-77.9%	-$487.00
$42.16	-55.8%	-$487.00
$63.23	-33.7%	-$487.00
$84.31	-11.6%	-$487.00
$105.38	+10.6%	+$513.00
$126.46	+32.7%	+$513.00
$147.53	+54.8%	+$513.00
$168.61	+76.9%	+$513.00
$189.68	+99.0%	+$513.00

When traders use collar on GH

Collars on GH hedge an existing long GH 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.

GH thesis for this collar

The market-implied 1-standard-deviation range for GH extends from approximately $79.03 on the downside to $111.61 on the upside. A GH collar hedges an existing long GH 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 GH IV rank near 14.84% 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 GH at 59.60%. As a Healthcare name, GH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GH-specific events.

GH 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. GH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GH alongside the broader basket even when GH-specific fundamentals are unchanged. Always rebuild the position from current GH chain quotes before placing a trade.

Frequently asked questions

What is a collar on GH?: A collar on GH is the collar strategy applied to GH (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 GH stock trading near $95.32, the strikes shown on this page are snapped to the nearest listed GH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are GH 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 GH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 59.60%), the computed maximum profit is $513.00 per contract and the computed maximum loss is -$487.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a GH collar?: The breakeven for the GH collar priced on this page is roughly $94.87 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 GH market-implied 1-standard-deviation expected move is approximately 17.09%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on GH?: Collars on GH hedge an existing long GH 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 GH implied volatility affect this collar?: GH ATM IV is at 59.60% with IV rank near 14.84%, 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.