How are RLAY 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 RLAY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 132.20%), the computed maximum profit is -$51.50 per contract and the computed maximum loss is -$251.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RLAY collar?

The breakeven for the RLAY 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 RLAY market-implied 1-standard-deviation expected move is approximately 37.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current RLAY implied volatility affect this collar?

RLAY ATM IV is at 132.20% with IV rank near 23.52%, 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.

RLAY Collar Strategy

RLAY (Relay Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Relay Therapeutics, Inc. is a precision medicine company currently engaged in clinical trials. Its central mission involves revolutionizing the drug discovery process, with a particular focus on enhancing the creation of small molecule therapies for specific types of cancer and genetic conditions. The company's pipeline features several promising drug candidates: RLY-4008, an orally administered small molecule designed to inhibit fibroblast growth factor receptor 2 (FGFR2), which is undergoing its initial human trials for patients with advanced or metastatic solid tumors exhibiting FGFR2 alterations; RLY-2608, a leading program targeting mutant phosphoinositide 3 kinase alpha (PI3Ka); and RLY-1971, another oral small molecule, an inhibitor of SHP2 (protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2), currently in Phase 1 trials for individuals with advanced solid tumors. Relay Therapeutics has established strategic partnerships, including a collaboration with D. E. Shaw Research, LLC, which utilizes computational modeling to analyze protein motion for the identification and development of therapeutic compounds.

RLAY (Relay Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.25B, a beta of 1.75 versus the broader market, a 52-week range of 3.025-18.94, average daily share volume of 4.2M, a public-listing history dating back to 2020, approximately 259 full-time employees. These structural characteristics shape how RLAY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.75 indicates RLAY 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 RLAY?

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 RLAY snapshot

As of June 29, 2026, spot at $19.74, ATM IV 132.20%, IV rank 23.52%, expected move 37.90%. The collar on RLAY 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 RLAY specifically: IV regime affects collar pricing on both sides; compressed RLAY IV at 132.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 37.90% (roughly $7.48 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 RLAY expiries trade a higher absolute premium for lower per-day decay. Position sizing on RLAY should anchor to the underlying notional of $19.74 per share and to the trader's directional view on RLAY stock.

RLAY collar setup

The RLAY 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 RLAY near $19.74, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RLAY 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 RLAY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$19.74	long
Sell 1	Call	$21.00	$1.13
Buy 1	Put	$19.00	$2.90

RLAY collar risk and reward

Net Premium / Debit: -$2,151.50
Max Profit (per contract): -$51.50
Max Loss (per contract): -$251.50
Breakeven(s): None on modeled curve
Risk / Reward Ratio: -0.205

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.

RLAY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on RLAY. 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%	-$251.50
$4.37	-77.8%	-$251.50
$8.74	-55.7%	-$251.50
$13.10	-33.6%	-$251.50
$17.46	-11.5%	-$251.50
$21.83	+10.6%	-$51.50
$26.19	+32.7%	-$51.50
$30.55	+54.8%	-$51.50
$34.92	+76.9%	-$51.50
$39.28	+99.0%	-$51.50

When traders use collar on RLAY

Collars on RLAY hedge an existing long RLAY 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.

RLAY thesis for this collar

The market-implied 1-standard-deviation range for RLAY extends from approximately $12.26 on the downside to $27.22 on the upside. A RLAY collar hedges an existing long RLAY 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 RLAY IV rank near 23.52% 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 RLAY at 132.20%. As a Healthcare name, RLAY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RLAY-specific events.

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

Frequently asked questions

What is a collar on RLAY?: A collar on RLAY is the collar strategy applied to RLAY (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 RLAY stock trading near $19.74, the strikes shown on this page are snapped to the nearest listed RLAY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RLAY 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 RLAY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 132.20%), the computed maximum profit is -$51.50 per contract and the computed maximum loss is -$251.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RLAY collar?: The breakeven for the RLAY 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 RLAY market-implied 1-standard-deviation expected move is approximately 37.90%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on RLAY?: Collars on RLAY hedge an existing long RLAY 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 RLAY implied volatility affect this collar?: RLAY ATM IV is at 132.20% with IV rank near 23.52%, 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.