How are VIR 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 VIR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 62.20%), the computed maximum profit is $60.50 per contract and the computed maximum loss is -$39.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VIR collar?

The breakeven for the VIR collar priced on this page is roughly $8.40 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 VIR market-implied 1-standard-deviation expected move is approximately 17.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VIR implied volatility affect this collar?

VIR ATM IV is at 62.20% with IV rank near 8.95%, 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.

VIR Collar Strategy

VIR (Vir Biotechnology, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Vir Biotechnology, Inc., a commercial-stage immunology company, develops therapeutic products to treat and prevent serious infectious diseases. It develops Sotrovimab (VIR-7832), a SARS-CoV-2-neutralizing mAbs to treat and prevent COVID-19 infection under the Xevudy brand; VIR-2218 and VIR-3434 for the treatment of hepatitis B virus; VIR-2482 for the prevention of influenza A virus; and VIR-1111 for the prevention of human immunodeficiency virus. The company has grant agreements with Bill & Melinda Gates Foundation and National Institutes of Health; an option and license agreement with Brii Biosciences Limited and Brii Biosciences Offshore Limited; a collaboration and license agreement with Alnylam Pharmaceuticals, Inc.; license agreements with The Rockefeller University and MedImmune, Inc.; collaboration with WuXi Biologics and Glaxo Wellcome UK Ltd.; and a collaborative research agreement with GlaxoSmithKline Biologicals SA. It also has a manufacturing agreement with Samsung Biologics Co.,Ltd. for the manufacture of SARS-COV-2 antibodies; and clinical collaboration with Gilead Sciences, Inc. for chronic hepatitis B virus. Vir Biotechnology, Inc. was incorporated in 2016 and is headquartered in San Francisco, California.

VIR (Vir Biotechnology, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.57B, a beta of 1.70 versus the broader market, a 52-week range of 4.155-11.66, average daily share volume of 3.6M, a public-listing history dating back to 2019, approximately 408 full-time employees. These structural characteristics shape how VIR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.70 indicates VIR 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 VIR?

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 VIR snapshot

As of May 15, 2026, spot at $8.77, ATM IV 62.20%, IV rank 8.95%, expected move 17.83%. The collar on VIR 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 63-day expiry.

Why this collar structure on VIR specifically: IV regime affects collar pricing on both sides; compressed VIR IV at 62.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.83% (roughly $1.56 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VIR expiries trade a higher absolute premium for lower per-day decay. Position sizing on VIR should anchor to the underlying notional of $8.77 per share and to the trader's directional view on VIR stock.

VIR collar setup

The VIR 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 VIR near $8.77, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VIR chain at a 63-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 VIR shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$8.77	long
Sell 1	Call	$9.00	$0.85
Buy 1	Put	$8.00	$0.48

VIR collar risk and reward

Net Premium / Debit: -$839.50
Max Profit (per contract): $60.50
Max Loss (per contract): -$39.50
Breakeven(s): $8.40
Risk / Reward Ratio: 1.532

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.

VIR collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on VIR. 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	-99.9%	-$39.50
$1.95	-77.8%	-$39.50
$3.89	-55.7%	-$39.50
$5.82	-33.6%	-$39.50
$7.76	-11.5%	-$39.50
$9.70	+10.6%	+$60.50
$11.64	+32.7%	+$60.50
$13.58	+54.8%	+$60.50
$15.51	+76.9%	+$60.50
$17.45	+99.0%	+$60.50

When traders use collar on VIR

Collars on VIR hedge an existing long VIR 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.

VIR thesis for this collar

The market-implied 1-standard-deviation range for VIR extends from approximately $7.21 on the downside to $10.33 on the upside. A VIR collar hedges an existing long VIR 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 VIR IV rank near 8.95% 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 VIR at 62.20%. As a Healthcare name, VIR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VIR-specific events.

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

Frequently asked questions

What is a collar on VIR?: A collar on VIR is the collar strategy applied to VIR (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 VIR stock trading near $8.77, the strikes shown on this page are snapped to the nearest listed VIR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VIR 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 VIR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 62.20%), the computed maximum profit is $60.50 per contract and the computed maximum loss is -$39.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VIR collar?: The breakeven for the VIR collar priced on this page is roughly $8.40 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 VIR market-implied 1-standard-deviation expected move is approximately 17.83%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on VIR?: Collars on VIR hedge an existing long VIR 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 VIR implied volatility affect this collar?: VIR ATM IV is at 62.20% with IV rank near 8.95%, 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.