How are PTCT 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 PTCT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.70%), the computed maximum profit is $309.50 per contract and the computed maximum loss is -$190.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PTCT collar?

The breakeven for the PTCT collar priced on this page is roughly $71.91 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PTCT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current PTCT implied volatility affect this collar?

PTCT ATM IV is at 49.70% with IV rank near 16.44%, 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.

PTCT Collar Strategy

PTCT (PTC Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

PTC Therapeutics, Inc. (PTCT) is a biopharmaceutical company committed to the research, development, and commercialization of innovative therapies for patients afflicted with rare genetic disorders. Its robust pipeline encompasses both commercialized therapies and a variety of experimental drug candidates, spanning all stages of development—from early research and preclinical studies to clinical trials—with a primary focus on addressing various rare disease indications. Among its commercialized products, PTC Therapeutics provides Translarna and Emflaza, offering therapeutic options for Duchenne muscular dystrophy patients in the European Economic Area and the United States. Translarna also addresses nonsense mutation Duchenne muscular dystrophy in Brazil and Russia. The company additionally commercializes Tegsedi and Waylivra for various rare conditions throughout Latin America and the Caribbean. Furthermore, in Brazil, PTC Therapeutics distributes Evrysdi as a treatment for spinal muscular atrophy (SMA) in patients aged two months and older.

PTCT (PTC Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $6.06B, a beta of 0.55 versus the broader market, a 52-week range of 45.425-90.87, average daily share volume of 1.6M, a public-listing history dating back to 2013, approximately 991 full-time employees. These structural characteristics shape how PTCT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.55 indicates PTCT 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 PTCT?

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.

PTCT snapshot

As of August 14, 2026, spot at $71.93, ATM IV 49.70%, IV rank 16.44%, expected move 14.25%. The collar on PTCT below is built from the August 14, 2026 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 PTCT specifically: IV regime affects collar pricing on both sides; compressed PTCT IV at 49.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.25% (roughly $10.25 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 PTCT expiries trade a higher absolute premium for lower per-day decay. Position sizing on PTCT should anchor to the underlying notional of $71.93 per share and to the trader's directional view on PTCT stock.

PTCT collar setup

The PTCT collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With PTCT at $71.93 on that close, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PTCT 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 PTCT shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$71.93	long
Sell 1	Call	$75.00	$3.40
Buy 1	Put	$70.00	$3.38

PTCT collar risk and reward

Net Premium / Debit: -$7,190.50
Max Profit (per contract): $309.50
Max Loss (per contract): -$190.50
Breakeven(s): $71.91
Risk / Reward Ratio: 1.625

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.

PTCT collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on PTCT. 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	-100.0%	-$190.50
$15.91	-77.9%	-$190.50
$31.82	-55.8%	-$190.50
$47.72	-33.7%	-$190.50
$63.62	-11.6%	-$190.50
$79.53	+10.6%	+$309.50
$95.43	+32.7%	+$309.50
$111.33	+54.8%	+$309.50
$127.23	+76.9%	+$309.50
$143.14	+99.0%	+$309.50

When traders use collar on PTCT

Collars on PTCT hedge an existing long PTCT 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.

PTCT thesis for this collar

The market-implied 1-standard-deviation range for PTCT extends from approximately $61.68 on the downside to $82.18 on the upside. A PTCT collar hedges an existing long PTCT 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 PTCT IV rank near 16.44% 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 PTCT at 49.70%. As a Healthcare name, PTCT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PTCT-specific events.

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

Frequently asked questions

What is a collar on PTCT?: A collar on PTCT is the collar strategy applied to PTCT (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 PTCT stock at $71.93 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed PTCT chain strike and the premiums come straight from that session's bid/ask midpoint.
How are PTCT 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 PTCT collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 49.70%), the computed maximum profit is $309.50 per contract and the computed maximum loss is -$190.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PTCT collar?: The breakeven for the PTCT collar priced on this page is roughly $71.91 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The PTCT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 14.25%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on PTCT?: Collars on PTCT hedge an existing long PTCT 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 PTCT implied volatility affect this collar?: PTCT ATM IV is at 49.70% with IV rank near 16.44%, 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.