ILMN Collar Strategy
ILMN (Illumina, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Illumina, Inc. specializes in delivering advanced genetic and genomic analysis tools, primarily through sequencing and array technologies. The company's offerings empower clients across various sectors to integrate genomic insights into both research and clinical environments, with applications spanning critical fields like life sciences, cancer diagnostics, reproductive health, agriculture, and innovative new domains. Illumina's portfolio encompasses specialized instrumentation and necessary consumables for genetic analysis, alongside comprehensive genotyping and sequencing services. They also offer instrument maintenance agreements, collaborate through development and licensing deals, and perform cancer detection tests. Its diverse clientele comprises leading genomic research facilities, universities, state-funded laboratories, medical centers, pharmaceutical and biotechnology firms, commercial molecular diagnostic providers, and businesses focused on consumer genomics. Illumina employs a two-pronged distribution strategy, selling directly to clients across North America, Europe, Latin America, and the Asia-Pacific.
ILMN (Illumina, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $26.71B, a trailing P/E of 31.67, a beta of 1.49 versus the broader market, a 52-week range of 88-182.84, average daily share volume of 1.7M, a public-listing history dating back to 2000, approximately 9K full-time employees. These structural characteristics shape how ILMN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.49 indicates ILMN 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 ILMN?
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 ILMN snapshot
As of June 30, 2026, spot at $177.55, ATM IV 43.00%, IV rank 17.90%, expected move 12.33%. The collar on ILMN 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 17-day expiry.
Why this collar structure on ILMN specifically: IV regime affects collar pricing on both sides; compressed ILMN IV at 43.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.33% (roughly $21.89 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ILMN expiries trade a higher absolute premium for lower per-day decay. Position sizing on ILMN should anchor to the underlying notional of $177.55 per share and to the trader's directional view on ILMN stock.
ILMN collar setup
The ILMN 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 ILMN near $177.55, the first option leg uses a $185.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ILMN chain at a 17-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 ILMN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $177.55 | long |
| Sell 1 | Call | $185.00 | $3.80 |
| Buy 1 | Put | $170.00 | $3.30 |
ILMN collar risk and reward
- Net Premium / Debit
- -$17,705.00
- Max Profit (per contract)
- $795.00
- Max Loss (per contract)
- -$705.00
- Breakeven(s)
- $177.05
- Risk / Reward Ratio
- 1.128
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.
ILMN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ILMN. 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% | -$705.00 |
| $39.27 | -77.9% | -$705.00 |
| $78.52 | -55.8% | -$705.00 |
| $117.78 | -33.7% | -$705.00 |
| $157.03 | -11.6% | -$705.00 |
| $196.29 | +10.6% | +$795.00 |
| $235.55 | +32.7% | +$795.00 |
| $274.80 | +54.8% | +$795.00 |
| $314.06 | +76.9% | +$795.00 |
| $353.32 | +99.0% | +$795.00 |
When traders use collar on ILMN
Collars on ILMN hedge an existing long ILMN 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.
ILMN thesis for this collar
The market-implied 1-standard-deviation range for ILMN extends from approximately $155.66 on the downside to $199.44 on the upside. A ILMN collar hedges an existing long ILMN 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 ILMN IV rank near 17.90% 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 ILMN at 43.00%. As a Healthcare name, ILMN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ILMN-specific events.
ILMN 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. ILMN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ILMN alongside the broader basket even when ILMN-specific fundamentals are unchanged. Always rebuild the position from current ILMN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ILMN?
- A collar on ILMN is the collar strategy applied to ILMN (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 ILMN stock trading near $177.55, the strikes shown on this page are snapped to the nearest listed ILMN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ILMN 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 ILMN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.00%), the computed maximum profit is $795.00 per contract and the computed maximum loss is -$705.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ILMN collar?
- The breakeven for the ILMN collar priced on this page is roughly $177.05 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 ILMN market-implied 1-standard-deviation expected move is approximately 12.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ILMN?
- Collars on ILMN hedge an existing long ILMN 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 ILMN implied volatility affect this collar?
- ILMN ATM IV is at 43.00% with IV rank near 17.90%, 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.