How are KOD 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 KOD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 84.50%), the computed maximum profit is $195.50 per contract and the computed maximum loss is -$104.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a KOD collar?

The breakeven for the KOD collar priced on this page is roughly $36.04 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 KOD market-implied 1-standard-deviation expected move is approximately 24.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current KOD implied volatility affect this collar?

KOD ATM IV is at 84.50% with IV rank near 6.33%, 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.

KOD Collar Strategy

KOD (Kodiak Sciences Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Kodiak Sciences Inc., a clinical stage biopharmaceutical company, researches, develops, and commercializes therapeutics to treat retinal diseases. Its lead product candidate is KSI-301, an anti-vascular endothelial growth factor antibody biopolymer that is in Phase IIb/III clinical study to treat wet age-related macular degeneration (AMD), as well as for the treatment of diabetic macular edema, naïve macular edema due to retinal vein occlusion, and non-proliferative diabetic retinopathy. The company's preclinical stage product candidate includes KSI-501, a bispecific conjugate to treat retinal diseases with an inflammatory component; and KSI-601, a triplet inhibitor for the treatment of dry AMD. The company was formerly known as Oligasis, LLC and changed its name to Kodiak Sciences Inc. in September 2015. Kodiak Sciences Inc. was incorporated in 2009 and is based in Palo Alto, California.

KOD (Kodiak Sciences Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.10B, a beta of 2.32 versus the broader market, a 52-week range of 2.81-47.84, average daily share volume of 1.1M, a public-listing history dating back to 2018, approximately 109 full-time employees. These structural characteristics shape how KOD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.32 indicates KOD 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 KOD?

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 KOD snapshot

As of May 15, 2026, spot at $36.62, ATM IV 84.50%, IV rank 6.33%, expected move 24.23%. The collar on KOD 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 KOD specifically: IV regime affects collar pricing on both sides; compressed KOD IV at 84.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 24.23% (roughly $8.87 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 KOD expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOD should anchor to the underlying notional of $36.62 per share and to the trader's directional view on KOD stock.

KOD collar setup

The KOD 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 KOD near $36.62, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KOD 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 KOD shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$36.62	long
Sell 1	Call	$38.00	$3.25
Buy 1	Put	$35.00	$2.68

KOD collar risk and reward

Net Premium / Debit: -$3,604.50
Max Profit (per contract): $195.50
Max Loss (per contract): -$104.50
Breakeven(s): $36.04
Risk / Reward Ratio: 1.871

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.

KOD collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on KOD. 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%	-$104.50
$8.11	-77.9%	-$104.50
$16.20	-55.8%	-$104.50
$24.30	-33.7%	-$104.50
$32.39	-11.5%	-$104.50
$40.49	+10.6%	+$195.50
$48.58	+32.7%	+$195.50
$56.68	+54.8%	+$195.50
$64.78	+76.9%	+$195.50
$72.87	+99.0%	+$195.50

When traders use collar on KOD

Collars on KOD hedge an existing long KOD 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.

KOD thesis for this collar

The market-implied 1-standard-deviation range for KOD extends from approximately $27.75 on the downside to $45.49 on the upside. A KOD collar hedges an existing long KOD 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 KOD IV rank near 6.33% 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 KOD at 84.50%. As a Healthcare name, KOD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOD-specific events.

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

Frequently asked questions

What is a collar on KOD?: A collar on KOD is the collar strategy applied to KOD (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 KOD stock trading near $36.62, the strikes shown on this page are snapped to the nearest listed KOD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are KOD 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 KOD collar priced from the end-of-day chain at a 30-day expiry (ATM IV 84.50%), the computed maximum profit is $195.50 per contract and the computed maximum loss is -$104.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a KOD collar?: The breakeven for the KOD collar priced on this page is roughly $36.04 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 KOD market-implied 1-standard-deviation expected move is approximately 24.23%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on KOD?: Collars on KOD hedge an existing long KOD 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 KOD implied volatility affect this collar?: KOD ATM IV is at 84.50% with IV rank near 6.33%, 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.