INVA Collar Strategy
INVA (Innoviva, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Innoviva, Inc. engages in the development and commercialization of pharmaceuticals in the United States and internationally. Its products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA, and VI; and TRELEGY ELLIPTA, a once-daily combination medicine consisting of an ICS, LAMA, and LABA. Innoviva, Inc. has a strategic partnership with Sarissa Capital Management LP. The company has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California.
INVA (Innoviva, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.71B, a trailing P/E of 3.40, a beta of 0.38 versus the broader market, a 52-week range of 16.52-25.15, average daily share volume of 711K, a public-listing history dating back to 2004, approximately 127 full-time employees. These structural characteristics shape how INVA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.38 indicates INVA has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 3.40 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price.
What is a collar on INVA?
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 INVA snapshot
As of May 15, 2026, spot at $21.97, ATM IV 68.80%, IV rank 39.08%, expected move 19.72%. The collar on INVA 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 INVA specifically: IV regime affects collar pricing on both sides; mid-range INVA IV at 68.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.72% (roughly $4.33 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 INVA expiries trade a higher absolute premium for lower per-day decay. Position sizing on INVA should anchor to the underlying notional of $21.97 per share and to the trader's directional view on INVA stock.
INVA collar setup
The INVA 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 INVA near $21.97, the first option leg uses a $23.07 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed INVA 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 INVA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.97 | long |
| Sell 1 | Call | $23.07 | N/A |
| Buy 1 | Put | $20.87 | N/A |
INVA 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.
INVA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on INVA. 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 INVA
Collars on INVA hedge an existing long INVA 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.
INVA thesis for this collar
The market-implied 1-standard-deviation range for INVA extends from approximately $17.64 on the downside to $26.30 on the upside. A INVA collar hedges an existing long INVA 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 INVA IV rank near 39.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on INVA should anchor more to the directional view and the expected-move geometry. As a Healthcare name, INVA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to INVA-specific events.
INVA 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. INVA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move INVA alongside the broader basket even when INVA-specific fundamentals are unchanged. Always rebuild the position from current INVA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on INVA?
- A collar on INVA is the collar strategy applied to INVA (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 INVA stock trading near $21.97, the strikes shown on this page are snapped to the nearest listed INVA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are INVA 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 INVA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 68.80%), 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 INVA collar?
- The breakeven for the INVA 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 INVA market-implied 1-standard-deviation expected move is approximately 19.72%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on INVA?
- Collars on INVA hedge an existing long INVA 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 INVA implied volatility affect this collar?
- INVA ATM IV is at 68.80% with IV rank near 39.08%, 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.