LNAI Collar Strategy
LNAI (Lunai Bioworks Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
A company rebranding from Renovaro, focusing on AI-powered therapeutics and biodefense, with “Neurotoxicity Intelligence Technology” in development.
LNAI (Lunai Bioworks Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $5.3M, a beta of 0.33 versus the broader market, a 52-week range of 0.151-5.5, average daily share volume of 22.3M, a public-listing history dating back to 2025, approximately 29 full-time employees. These structural characteristics shape how LNAI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.33 indicates LNAI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on LNAI?
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 LNAI snapshot
As of May 14, 2026, spot at $0.28, ATM IV 17.50%, IV rank 0.00%, expected move 5.02%. The collar on LNAI 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 35-day expiry.
Why this collar structure on LNAI specifically: IV regime affects collar pricing on both sides; compressed LNAI IV at 17.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.02% (roughly $0.01 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LNAI expiries trade a higher absolute premium for lower per-day decay. Position sizing on LNAI should anchor to the underlying notional of $0.28 per share and to the trader's directional view on LNAI stock.
LNAI collar setup
The LNAI 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 LNAI near $0.28, the first option leg uses a $0.29 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LNAI chain at a 35-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 LNAI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $0.28 | long |
| Sell 1 | Call | $0.29 | N/A |
| Buy 1 | Put | $0.27 | N/A |
LNAI 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.
LNAI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LNAI. 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 LNAI
Collars on LNAI hedge an existing long LNAI 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.
LNAI thesis for this collar
The market-implied 1-standard-deviation range for LNAI extends from approximately $0.27 on the downside to $0.29 on the upside. A LNAI collar hedges an existing long LNAI 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 LNAI IV rank near 0.00% 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 LNAI at 17.50%. As a Healthcare name, LNAI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LNAI-specific events.
LNAI 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. LNAI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LNAI alongside the broader basket even when LNAI-specific fundamentals are unchanged. Always rebuild the position from current LNAI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LNAI?
- A collar on LNAI is the collar strategy applied to LNAI (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 LNAI stock trading near $0.28, the strikes shown on this page are snapped to the nearest listed LNAI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LNAI 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 LNAI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.50%), 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 LNAI collar?
- The breakeven for the LNAI 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 LNAI market-implied 1-standard-deviation expected move is approximately 5.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LNAI?
- Collars on LNAI hedge an existing long LNAI 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 LNAI implied volatility affect this collar?
- LNAI ATM IV is at 17.50% with IV rank near 0.00%, 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.