VCYT Collar Strategy
VCYT (Veracyte, Inc.), in the Healthcare sector, (Medical - Diagnostics & Research industry), listed on NASDAQ.
Veracyte, Inc. operates as a diagnostics company in the United States and internationally. The company offers Afirma Genomic Sequencing Classifier for cancerous thyroid nodules; Decipher Prostate Genomic Classifiers for prostate cancer diagnosis; Decipher Bladder Genomic Classifier for bladder cancer diagnosis; Prosigna Breast Cancer Assay for breast cancer diagnosis; and Percepta Nasal Swab Test for lung cancer diagnosis. It also provides the nCounter analysis system services. The company was formerly known as Calderome, Inc. and changed its name to Veracyte, Inc. in March 2008. Veracyte, Inc. was incorporated in 2006 and is headquartered in South San Francisco, California.
VCYT (Veracyte, Inc.) trades in the Healthcare sector, specifically Medical - Diagnostics & Research, with a market capitalization of approximately $3.57B, a trailing P/E of 31.09, a beta of 1.94 versus the broader market, a 52-week range of 28.25-60.91, average daily share volume of 1.2M, a public-listing history dating back to 2013, approximately 755 full-time employees. These structural characteristics shape how VCYT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.94 indicates VCYT 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 VCYT?
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.
VCYT snapshot
As of August 14, 2026, spot at $41.53, ATM IV 46.50%, IV rank 15.19%, expected move 13.33%. The collar on VCYT below is built from the 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 VCYT specifically: IV regime affects collar pricing on both sides; compressed VCYT IV at 46.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.33% (roughly $5.54 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 VCYT expiries trade a higher absolute premium for lower per-day decay. Position sizing on VCYT should anchor to the underlying notional of $41.53 per share and to the trader's directional view on VCYT stock.
VCYT collar setup
The VCYT 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 VCYT at $41.53 on that close, the first option leg uses a $43.61 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VCYT 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 VCYT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $41.53 | long |
| Sell 1 | Call | $43.61 | N/A |
| Buy 1 | Put | $39.45 | N/A |
VCYT collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
VCYT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VCYT. 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.
When traders use collar on VCYT
Collars on VCYT hedge an existing long VCYT 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.
VCYT thesis for this collar
The market-implied 1-standard-deviation range for VCYT extends from approximately $35.99 on the downside to $47.07 on the upside. A VCYT collar hedges an existing long VCYT 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 VCYT IV rank near 15.19% 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 VCYT at 46.50%. As a Healthcare name, VCYT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VCYT-specific events.
VCYT 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. VCYT positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VCYT alongside the broader basket even when VCYT-specific fundamentals are unchanged. Always rebuild the position from current VCYT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VCYT?
- A collar on VCYT is the collar strategy applied to VCYT (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 VCYT stock at $41.53 on the most recent close, the strikes shown on this page are snapped to the nearest listed VCYT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are VCYT 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 VCYT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.50%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VCYT collar?
- The breakeven for the VCYT collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 VCYT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.33%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VCYT?
- Collars on VCYT hedge an existing long VCYT 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 VCYT implied volatility affect this collar?
- VCYT ATM IV is at 46.50% with IV rank near 15.19%, 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.