How are SEPN 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 SEPN collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 74.30%), the computed maximum profit is $305.00 per contract and the computed maximum loss is -$195.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a SEPN collar?

The breakeven for the SEPN collar priced on this page is roughly $43.95 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 SEPN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current SEPN implied volatility affect this collar?

SEPN ATM IV is at 74.30% with IV rank near 12.55%, 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.

SEPN Collar Strategy

SEPN (Septerna Inc), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Septerna, Inc., a clinical-stage biotechnology company, discovers and develops G protein-coupled receptor (GPCR) oral small molecule products for the treatment of endocrinology, immunology and inflammation, and metabolic diseases. It develops PTH1R Program, oral small molecule Parathyroid Hormone 1 Receptor agonists for the treatment of hypoparathyroidism; SEP-631, an oral small molecule MRGPRX2 negative allosteric modulator (NAM) for chronic spontaneous urticaria and other mast cell diseases; and TSHR Program, an oral small molecule TSHR NAM for graves’ disease and thyroid eye disease. In addition, it focuses on other therapeutic areas, including neurology, women’s health, cardiovascular disease, and respiratory disease. It has global collaboration and license agreement with Novo Nordisk to discover, develop and commercialize multiple potential oral small molecule therapies for metabolic-related diseases based on certain specified molecular targets. The company was formerly known as GPCR NewCo, Inc. and changed its name to Septerna Inc. in June 2021. Septerna, Inc. was incorporated in 2019 and is headquartered in South San Francisco, California.

SEPN (Septerna Inc) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.17B, a beta of 2.28 versus the broader market, a 52-week range of 10.74-51.1, average daily share volume of 378K, a public-listing history dating back to 2024, approximately 130 full-time employees. These structural characteristics shape how SEPN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.28 indicates SEPN 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 SEPN?

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.

SEPN snapshot

As of August 14, 2026, spot at $44.70, ATM IV 74.30%, IV rank 12.55%, expected move 21.30%. The collar on SEPN 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 SEPN specifically: IV regime affects collar pricing on both sides; compressed SEPN IV at 74.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 21.30% (roughly $9.52 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 SEPN expiries trade a higher absolute premium for lower per-day decay. Position sizing on SEPN should anchor to the underlying notional of $44.70 per share and to the trader's directional view on SEPN stock.

SEPN collar setup

The SEPN 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 SEPN at $44.70 on that close, the first option leg uses a $47.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SEPN 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 SEPN shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$44.70	long
Sell 1	Call	$47.00	$3.45
Buy 1	Put	$42.00	$2.70

SEPN collar risk and reward

Net Premium / Debit: -$4,395.00
Max Profit (per contract): $305.00
Max Loss (per contract): -$195.00
Breakeven(s): $43.95
Risk / Reward Ratio: 1.564

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.

SEPN collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on SEPN. 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%	-$195.00
$9.89	-77.9%	-$195.00
$19.77	-55.8%	-$195.00
$29.66	-33.7%	-$195.00
$39.54	-11.5%	-$195.00
$49.42	+10.6%	+$305.00
$59.30	+32.7%	+$305.00
$69.19	+54.8%	+$305.00
$79.07	+76.9%	+$305.00
$88.95	+99.0%	+$305.00

When traders use collar on SEPN

Collars on SEPN hedge an existing long SEPN 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.

SEPN thesis for this collar

The market-implied 1-standard-deviation range for SEPN extends from approximately $35.18 on the downside to $54.22 on the upside. A SEPN collar hedges an existing long SEPN 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 SEPN IV rank near 12.55% 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 SEPN at 74.30%. As a Healthcare name, SEPN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SEPN-specific events.

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

Frequently asked questions

What is a collar on SEPN?: A collar on SEPN is the collar strategy applied to SEPN (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 SEPN stock at $44.70 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SEPN chain strike and the premiums come straight from that session's bid/ask midpoint.
How are SEPN 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 SEPN collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 74.30%), the computed maximum profit is $305.00 per contract and the computed maximum loss is -$195.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a SEPN collar?: The breakeven for the SEPN collar priced on this page is roughly $43.95 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 SEPN market-implied 1-standard-deviation expected move in the same options snapshot is approximately 21.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on SEPN?: Collars on SEPN hedge an existing long SEPN 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 SEPN implied volatility affect this collar?: SEPN ATM IV is at 74.30% with IV rank near 12.55%, 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.