NUVB Collar Strategy
NUVB (Nuvation Bio Inc.), in the Healthcare sector, (Biotechnology industry), listed on NYSE.
Nuvation Bio Inc., a clinical-stage biopharmaceutical company, focuses on the development of therapeutic candidates for oncology. The company's lead product candidate is NUV-422, a small molecule inhibitor targeting cyclin-dependent kinase (CDK)2, CDK4, and CDK6. It is also developing NUV-868, a selective oral small molecule BET inhibitor that epigenetically regulates proteins that control tumor growth and differentiation; NUV-569, a differentiated oral small molecule selective inhibitor of the Wee1 kinase for DNA damage repair; NUV-1182, an adenosine receptor inhibitor; and drug-drug conjugate (DDC) platform that focuses on targeting an inhibitor of poly ADP ribose polymerase (PARP) to anti-cancer warheads of existing drugs, as well as PARP inhibitor to address ER+ breast and ovarian cancer. The company was formerly known as RePharmation Inc. and changed its name to Nuvation Bio Inc. in April 2019. Nuvation Bio Inc. was founded in 2018 and is headquartered in New York, New York.
NUVB (Nuvation Bio Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.66B, a beta of 1.52 versus the broader market, a 52-week range of 1.57-9.75, average daily share volume of 4.4M, a public-listing history dating back to 2020, approximately 273 full-time employees. These structural characteristics shape how NUVB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.52 indicates NUVB 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 NUVB?
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 NUVB snapshot
As of May 15, 2026, spot at $4.34, ATM IV 147.80%, IV rank 46.81%, expected move 31.24%. The collar on NUVB 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 NUVB specifically: IV regime affects collar pricing on both sides; mid-range NUVB IV at 147.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.24% (roughly $1.36 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 NUVB expiries trade a higher absolute premium for lower per-day decay. Position sizing on NUVB should anchor to the underlying notional of $4.34 per share and to the trader's directional view on NUVB stock.
NUVB collar setup
The NUVB 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 NUVB near $4.34, the first option leg uses a $4.56 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NUVB 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 NUVB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $4.34 | long |
| Sell 1 | Call | $4.56 | N/A |
| Buy 1 | Put | $4.12 | N/A |
NUVB 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.
NUVB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on NUVB. 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 NUVB
Collars on NUVB hedge an existing long NUVB 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.
NUVB thesis for this collar
The market-implied 1-standard-deviation range for NUVB extends from approximately $2.98 on the downside to $5.70 on the upside. A NUVB collar hedges an existing long NUVB 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 NUVB IV rank near 46.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on NUVB should anchor more to the directional view and the expected-move geometry. As a Healthcare name, NUVB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NUVB-specific events.
NUVB 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. NUVB positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NUVB alongside the broader basket even when NUVB-specific fundamentals are unchanged. Always rebuild the position from current NUVB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on NUVB?
- A collar on NUVB is the collar strategy applied to NUVB (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 NUVB stock trading near $4.34, the strikes shown on this page are snapped to the nearest listed NUVB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NUVB 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 NUVB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 147.80%), 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 NUVB collar?
- The breakeven for the NUVB 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 NUVB market-implied 1-standard-deviation expected move is approximately 31.24%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on NUVB?
- Collars on NUVB hedge an existing long NUVB 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 NUVB implied volatility affect this collar?
- NUVB ATM IV is at 147.80% with IV rank near 46.81%, 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.