TWST Collar Strategy
TWST (Twist Bioscience Corporation), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Twist Bioscience Corporation, a synthetic biology company, manufactures and sells synthetic DNA-based products. The company's DNA synthesis platform enables the manufacturing of synthetic DNA by writing DNA on a silicon chip. It offers synthetic DNA-based products, including synthetic genes, tools for sample preparation, antibody libraries for drug discovery and development, and DNA as a digital data storage medium. The company has collaboration agreements with Victorian Clinical Genetic Services; Vivlion GmbH.; Kyowa Kirin Pharmaceutical Research, Inc.; deepCDR Biologics AG; and Centogene N.V to develop advanced sequencing tools. It also has a research collaboration with Boehringer Ingelheim International GmbH to use proprietary antibody libraries to discover therapeutic antibodies against multiple targets. Twist Bioscience Corporation was incorporated in 2013 and is headquartered in South San Francisco, California.
TWST (Twist Bioscience Corporation) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $3.39B, a beta of 2.23 versus the broader market, a 52-week range of 23.3-66.06, average daily share volume of 1.3M, a public-listing history dating back to 2018, approximately 923 full-time employees. These structural characteristics shape how TWST stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.23 indicates TWST 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 TWST?
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 TWST snapshot
As of May 15, 2026, spot at $48.87, ATM IV 91.40%, IV rank 42.49%, expected move 26.20%. The collar on TWST 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 TWST specifically: IV regime affects collar pricing on both sides; mid-range TWST IV at 91.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.20% (roughly $12.81 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 TWST expiries trade a higher absolute premium for lower per-day decay. Position sizing on TWST should anchor to the underlying notional of $48.87 per share and to the trader's directional view on TWST stock.
TWST collar setup
The TWST 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 TWST near $48.87, the first option leg uses a $52.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TWST 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 TWST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $48.87 | long |
| Sell 1 | Call | $52.50 | $4.25 |
| Buy 1 | Put | $47.50 | $4.53 |
TWST collar risk and reward
- Net Premium / Debit
- -$4,914.50
- Max Profit (per contract)
- $335.50
- Max Loss (per contract)
- -$164.50
- Breakeven(s)
- $49.15
- Risk / Reward Ratio
- 2.040
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.
TWST collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TWST. 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% | -$164.50 |
| $10.81 | -77.9% | -$164.50 |
| $21.62 | -55.8% | -$164.50 |
| $32.42 | -33.7% | -$164.50 |
| $43.23 | -11.5% | -$164.50 |
| $54.03 | +10.6% | +$335.50 |
| $64.84 | +32.7% | +$335.50 |
| $75.64 | +54.8% | +$335.50 |
| $86.44 | +76.9% | +$335.50 |
| $97.25 | +99.0% | +$335.50 |
When traders use collar on TWST
Collars on TWST hedge an existing long TWST 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.
TWST thesis for this collar
The market-implied 1-standard-deviation range for TWST extends from approximately $36.06 on the downside to $61.68 on the upside. A TWST collar hedges an existing long TWST 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 TWST IV rank near 42.49% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on TWST should anchor more to the directional view and the expected-move geometry. As a Healthcare name, TWST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TWST-specific events.
TWST 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. TWST positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TWST alongside the broader basket even when TWST-specific fundamentals are unchanged. Always rebuild the position from current TWST chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TWST?
- A collar on TWST is the collar strategy applied to TWST (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 TWST stock trading near $48.87, the strikes shown on this page are snapped to the nearest listed TWST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TWST 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 TWST collar priced from the end-of-day chain at a 30-day expiry (ATM IV 91.40%), the computed maximum profit is $335.50 per contract and the computed maximum loss is -$164.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TWST collar?
- The breakeven for the TWST collar priced on this page is roughly $49.15 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 TWST market-implied 1-standard-deviation expected move is approximately 26.20%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TWST?
- Collars on TWST hedge an existing long TWST 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 TWST implied volatility affect this collar?
- TWST ATM IV is at 91.40% with IV rank near 42.49%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.