PBYI Collar Strategy
PBYI (Puma Biotechnology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care in the United States and internationally. The company's drug candidates include PB272 neratinib (oral) for the patients with early stage HER2-overexpressed/amplified breast cancer; PB272 (neratinib, oral) for the use of neratinib in combination with capecitabine for the treatment of adult patients with advanced or metastatic HER2-positive breast cancer; PB272 (neratinib, oral) for HER2 mutation-positive solid tumors. It has a license agreement with Pfizer, Inc.; and sub-license agreement with Specialised Therapeutics Asia Pte Ltd., CANbridge BIOMED Limited, Pint Pharma International SA, Knight Therapeutics, Inc., Pierre Fabre Medicament SAS, and Bixink Therapeutics Co., Ltd. The company was founded in 2010 and is headquartered in Los Angeles, California.
PBYI (Puma Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $364.9M, a trailing P/E of 14.95, a beta of 1.23 versus the broader market, a 52-week range of 2.85-7.9, average daily share volume of 358K, a public-listing history dating back to 2012, approximately 172 full-time employees. These structural characteristics shape how PBYI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.23 places PBYI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on PBYI?
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 PBYI snapshot
As of May 15, 2026, spot at $6.93, ATM IV 98.90%, IV rank 19.16%, expected move 28.35%. The collar on PBYI 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 PBYI specifically: IV regime affects collar pricing on both sides; compressed PBYI IV at 98.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.35% (roughly $1.96 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 PBYI expiries trade a higher absolute premium for lower per-day decay. Position sizing on PBYI should anchor to the underlying notional of $6.93 per share and to the trader's directional view on PBYI stock.
PBYI collar setup
The PBYI 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 PBYI near $6.93, the first option leg uses a $7.28 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PBYI 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 PBYI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $6.93 | long |
| Sell 1 | Call | $7.28 | N/A |
| Buy 1 | Put | $6.58 | N/A |
PBYI 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.
PBYI collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PBYI. 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 PBYI
Collars on PBYI hedge an existing long PBYI 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.
PBYI thesis for this collar
The market-implied 1-standard-deviation range for PBYI extends from approximately $4.97 on the downside to $8.89 on the upside. A PBYI collar hedges an existing long PBYI 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 PBYI IV rank near 19.16% 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 PBYI at 98.90%. As a Healthcare name, PBYI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PBYI-specific events.
PBYI 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. PBYI positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PBYI alongside the broader basket even when PBYI-specific fundamentals are unchanged. Always rebuild the position from current PBYI chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PBYI?
- A collar on PBYI is the collar strategy applied to PBYI (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 PBYI stock trading near $6.93, the strikes shown on this page are snapped to the nearest listed PBYI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PBYI 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 PBYI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 98.90%), 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 PBYI collar?
- The breakeven for the PBYI 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 PBYI market-implied 1-standard-deviation expected move is approximately 28.35%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PBYI?
- Collars on PBYI hedge an existing long PBYI 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 PBYI implied volatility affect this collar?
- PBYI ATM IV is at 98.90% with IV rank near 19.16%, 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.