How are NVAX 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 NVAX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.41%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a NVAX collar?

The breakeven for the NVAX collar priced on this page is roughly $9.40 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 NVAX market-implied 1-standard-deviation expected move is approximately 22.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current NVAX implied volatility affect this collar?

NVAX ATM IV is at 78.41% with IV rank near 24.44%, 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.

NVAX Collar Strategy

NVAX (Novavax, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Novavax, Inc. is a biotechnology firm dedicated to discovering, developing, and commercializing vaccines aimed at preventing serious infectious diseases and addressing critical health needs. The company's diverse pipeline includes NVX-CoV2373, a coronavirus vaccine candidate currently undergoing two Phase III trials, one Phase IIb, and one Phase I/II trial. Also featured is NanoFlu, a nanoparticle-based seasonal quadrivalent influenza vaccine in Phase 3 clinical trials. Furthermore, Novavax is advancing ResVax, a respiratory syncytial virus (RSV) fusion (F) protein nanoparticle vaccine, which is in Phase II clinical trials for adults aged 60 and older, and in Phase I for pediatric use. The company holds a collaboration agreement with Takeda Pharmaceutical Company Limited for the development, manufacturing, and commercialization of its COVID-19 vaccine candidate, NVX-CoV2373. Established in 1987, Novavax, Inc. is headquartered in Gaithersburg, Maryland.

NVAX (Novavax, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.46B, a beta of 2.41 versus the broader market, a 52-week range of 6.2-11.97, average daily share volume of 4.8M, a public-listing history dating back to 1995, approximately 952 full-time employees. These structural characteristics shape how NVAX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.41 indicates NVAX 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 NVAX?

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 NVAX snapshot

As of June 30, 2026, spot at $9.39, ATM IV 78.41%, IV rank 24.44%, expected move 22.48%. The collar on NVAX 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 31-day expiry.

Why this collar structure on NVAX specifically: IV regime affects collar pricing on both sides; compressed NVAX IV at 78.41% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 22.48% (roughly $2.11 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVAX expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVAX should anchor to the underlying notional of $9.39 per share and to the trader's directional view on NVAX stock.

NVAX collar setup

The NVAX 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 NVAX near $9.39, the first option leg uses a $10.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVAX chain at a 31-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 NVAX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$9.39	long
Sell 1	Call	$10.00	$0.60
Buy 1	Put	$9.00	$0.61

NVAX collar risk and reward

Net Premium / Debit: -$940.00
Max Profit (per contract): $60.00
Max Loss (per contract): -$40.00
Breakeven(s): $9.40
Risk / Reward Ratio: 1.500

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.

NVAX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on NVAX. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-99.9%	-$40.00
$2.09	-77.8%	-$40.00
$4.16	-55.7%	-$40.00
$6.24	-33.6%	-$40.00
$8.31	-11.5%	-$40.00
$10.39	+10.6%	+$60.00
$12.46	+32.7%	+$60.00
$14.54	+54.8%	+$60.00
$16.61	+76.9%	+$60.00
$18.69	+99.0%	+$60.00

When traders use collar on NVAX

Collars on NVAX hedge an existing long NVAX 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.

NVAX thesis for this collar

The market-implied 1-standard-deviation range for NVAX extends from approximately $7.28 on the downside to $11.50 on the upside. A NVAX collar hedges an existing long NVAX 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 NVAX IV rank near 24.44% 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 NVAX at 78.41%. As a Healthcare name, NVAX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVAX-specific events.

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

Frequently asked questions

What is a collar on NVAX?: A collar on NVAX is the collar strategy applied to NVAX (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 NVAX stock trading near $9.39, the strikes shown on this page are snapped to the nearest listed NVAX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are NVAX 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 NVAX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 78.41%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a NVAX collar?: The breakeven for the NVAX collar priced on this page is roughly $9.40 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 NVAX market-implied 1-standard-deviation expected move is approximately 22.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on NVAX?: Collars on NVAX hedge an existing long NVAX 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 NVAX implied volatility affect this collar?: NVAX ATM IV is at 78.41% with IV rank near 24.44%, 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.