LNTH Collar Strategy
LNTH (Lantheus Holdings, Inc.), in the Healthcare sector, (Drug Manufacturers - Specialty & Generic industry), listed on NASDAQ.
Lantheus Holdings, Inc. is a global pharmaceutical company dedicated to the development, manufacturing, and commercialization of advanced diagnostic and therapeutic agents. Their mission is to empower clinicians worldwide in the accurate diagnosis and effective treatment of a wide spectrum of conditions, particularly heart disease, various cancers, and other serious illnesses. Their current diagnostic portfolio features several key products: DEFINITY, a microbubble ultrasound contrast agent for cardiac evaluations; TechneLite, a technetium generator essential for nuclear medicine; Xenon-133, used to assess pulmonary function; Neurolite, which helps identify stroke-damaged areas in the brain; Cardiolite, an injectable Tc-99m-labeled imaging agent; Thallium-201 for detecting cardiovascular disease; and Gallium-67, utilized in identifying infections and cancerous tumors. They also offer the Automated Bone Scan Index, a tool for quantifying prostate cancer burden from bone scans; PYLARIFY, designed for visualizing lymph nodes, bone, and soft tissue metastases to detect recurrent or metastatic prostate cancer; and Cobalt (Co 57), a non-pharmaceutical radiochemical. In the therapeutic space, Lantheus provides AZEDRA, a radiopharmaceutical treatment for both adult and pediatric patients, and RELISTOR, a medication addressing opioid-induced constipation. The company's robust development pipeline includes promising innovations such as flurpiridaz F 18, an agent for assessing myocardial blood flow; 1095, a PSMA-targeted iodine-131 labeled small molecule; LMI 1195 for neuroblastoma tumors in both children and adults; PYLARIFY AI, an AI-powered medical device software for standardized quantitative analysis of PSMA PET/CT images in prostate cancer; and leronlimab, an investigational humanized monoclonal antibody.
LNTH (Lantheus Holdings, Inc.) trades in the Healthcare sector, specifically Drug Manufacturers - Specialty & Generic, with a market capitalization of approximately $7.15B, a trailing P/E of 25.47, a beta of -0.04 versus the broader market, a 52-week range of 47.25-111.46, average daily share volume of 911K, a public-listing history dating back to 2015, approximately 808 full-time employees. These structural characteristics shape how LNTH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.04 indicates LNTH 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 LNTH?
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 LNTH snapshot
As of June 29, 2026, spot at $109.49, ATM IV 46.80%, IV rank 7.56%, expected move 13.42%. The collar on LNTH 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 18-day expiry.
Why this collar structure on LNTH specifically: IV regime affects collar pricing on both sides; compressed LNTH IV at 46.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.42% (roughly $14.69 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LNTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on LNTH should anchor to the underlying notional of $109.49 per share and to the trader's directional view on LNTH stock.
LNTH collar setup
The LNTH 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 LNTH near $109.49, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LNTH chain at a 18-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 LNTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $109.49 | long |
| Sell 1 | Call | $115.00 | $2.48 |
| Buy 1 | Put | $105.00 | $3.28 |
LNTH collar risk and reward
- Net Premium / Debit
- -$11,029.00
- Max Profit (per contract)
- $471.00
- Max Loss (per contract)
- -$529.00
- Breakeven(s)
- $110.29
- Risk / Reward Ratio
- 0.890
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.
LNTH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on LNTH. 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% | -$529.00 |
| $24.22 | -77.9% | -$529.00 |
| $48.43 | -55.8% | -$529.00 |
| $72.63 | -33.7% | -$529.00 |
| $96.84 | -11.6% | -$529.00 |
| $121.05 | +10.6% | +$471.00 |
| $145.26 | +32.7% | +$471.00 |
| $169.46 | +54.8% | +$471.00 |
| $193.67 | +76.9% | +$471.00 |
| $217.88 | +99.0% | +$471.00 |
When traders use collar on LNTH
Collars on LNTH hedge an existing long LNTH 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.
LNTH thesis for this collar
The market-implied 1-standard-deviation range for LNTH extends from approximately $94.80 on the downside to $124.18 on the upside. A LNTH collar hedges an existing long LNTH 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 LNTH IV rank near 7.56% 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 LNTH at 46.80%. As a Healthcare name, LNTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LNTH-specific events.
LNTH 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. LNTH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LNTH alongside the broader basket even when LNTH-specific fundamentals are unchanged. Always rebuild the position from current LNTH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on LNTH?
- A collar on LNTH is the collar strategy applied to LNTH (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 LNTH stock trading near $109.49, the strikes shown on this page are snapped to the nearest listed LNTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LNTH 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 LNTH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.80%), the computed maximum profit is $471.00 per contract and the computed maximum loss is -$529.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LNTH collar?
- The breakeven for the LNTH collar priced on this page is roughly $110.29 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 LNTH market-implied 1-standard-deviation expected move is approximately 13.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on LNTH?
- Collars on LNTH hedge an existing long LNTH 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 LNTH implied volatility affect this collar?
- LNTH ATM IV is at 46.80% with IV rank near 7.56%, 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.