TNGX Collar Strategy
TNGX (Tango Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Tango Therapeutics, Inc., a biotechnology company, discovers and develops drugs for the treatment of cancer. Its lead program is TNG908, a synthetic lethal small molecule inhibitor of protein arginine methyltransferase 5 that is being developed as a treatment for cancers with methylthioadenosine phosphorylase deletions. The company also develops Ubiquitin-specific protease 1, an inhibitor to treat patients with BRCA1 or BRCA2-mutant cancers; and Target 3 for STK11-mutant cancers. Tango Therapeutics, Inc. has a strategic collaboration with Gilead Sciences, Inc. for the discovery, development, and commercialization of a pipeline of therapies for patients with cancer. The company was founded in 2017 and is based in Cambridge, Massachusetts.
TNGX (Tango Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $2.96B, a beta of 1.22 versus the broader market, a 52-week range of 1.25-28.41, average daily share volume of 3.3M, a public-listing history dating back to 2020, approximately 155 full-time employees. These structural characteristics shape how TNGX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.22 places TNGX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on TNGX?
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 TNGX snapshot
As of May 15, 2026, spot at $20.77, ATM IV 128.60%, IV rank 16.87%, expected move 36.87%. The collar on TNGX 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 TNGX specifically: IV regime affects collar pricing on both sides; compressed TNGX IV at 128.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 36.87% (roughly $7.66 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 TNGX expiries trade a higher absolute premium for lower per-day decay. Position sizing on TNGX should anchor to the underlying notional of $20.77 per share and to the trader's directional view on TNGX stock.
TNGX collar setup
The TNGX 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 TNGX near $20.77, the first option leg uses a $22.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TNGX 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 TNGX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $20.77 | long |
| Sell 1 | Call | $22.00 | $2.20 |
| Buy 1 | Put | $20.00 | $2.65 |
TNGX collar risk and reward
- Net Premium / Debit
- -$2,122.00
- Max Profit (per contract)
- $78.00
- Max Loss (per contract)
- -$122.00
- Breakeven(s)
- $21.22
- Risk / Reward Ratio
- 0.639
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.
TNGX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TNGX. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$122.00 |
| $4.60 | -77.8% | -$122.00 |
| $9.19 | -55.7% | -$122.00 |
| $13.78 | -33.6% | -$122.00 |
| $18.38 | -11.5% | -$122.00 |
| $22.97 | +10.6% | +$78.00 |
| $27.56 | +32.7% | +$78.00 |
| $32.15 | +54.8% | +$78.00 |
| $36.74 | +76.9% | +$78.00 |
| $41.33 | +99.0% | +$78.00 |
When traders use collar on TNGX
Collars on TNGX hedge an existing long TNGX 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.
TNGX thesis for this collar
The market-implied 1-standard-deviation range for TNGX extends from approximately $13.11 on the downside to $28.43 on the upside. A TNGX collar hedges an existing long TNGX 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 TNGX IV rank near 16.87% 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 TNGX at 128.60%. As a Healthcare name, TNGX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TNGX-specific events.
TNGX 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. TNGX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TNGX alongside the broader basket even when TNGX-specific fundamentals are unchanged. Always rebuild the position from current TNGX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TNGX?
- A collar on TNGX is the collar strategy applied to TNGX (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 TNGX stock trading near $20.77, the strikes shown on this page are snapped to the nearest listed TNGX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TNGX 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 TNGX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 128.60%), the computed maximum profit is $78.00 per contract and the computed maximum loss is -$122.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TNGX collar?
- The breakeven for the TNGX collar priced on this page is roughly $21.22 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 TNGX market-implied 1-standard-deviation expected move is approximately 36.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TNGX?
- Collars on TNGX hedge an existing long TNGX 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 TNGX implied volatility affect this collar?
- TNGX ATM IV is at 128.60% with IV rank near 16.87%, 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.