How are VKTX 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 VKTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 80.32%), the computed maximum profit is $321.50 per contract and the computed maximum loss is -$78.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a VKTX collar?

The breakeven for the VKTX collar priced on this page is roughly $37.79 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 VKTX market-implied 1-standard-deviation expected move is approximately 23.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current VKTX implied volatility affect this collar?

VKTX ATM IV is at 80.32% with IV rank near 27.63%, 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.

VKTX Collar Strategy

VKTX (Viking Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Viking Therapeutics, Inc. operates as a clinical-stage biopharmaceutical company, specializing in the creation of novel treatments for metabolic and endocrine conditions. The company's leading investigational drug, VK2809, is an orally administered, tissue and receptor-selective agonist of the thyroid hormone receptor beta (TRß). This compound is currently progressing through Phase IIb clinical trials, targeting both non-alcoholic steatohepatitis (NASH) in biopsy-confirmed patients and non-alcoholic fatty liver disease (NAFLD). Viking's pipeline also features VK5211, an oral, non-steroidal selective androgen receptor modulator undergoing Phase II studies for individuals recuperating from non-elective hip fracture surgery. Additionally, VK0612, an oral drug candidate for type 2 diabetes, is poised to enter Phase IIb trials. The firm is also developing VK0214, another orally active, tissue and receptor-selective TRß agonist, specifically aimed at X-linked adrenoleukodystrophy.

VKTX (Viking Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $4.42B, a beta of 0.68 versus the broader market, a 52-week range of 22.959-43.15, average daily share volume of 2.3M, a public-listing history dating back to 2015, approximately 45 full-time employees. These structural characteristics shape how VKTX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.68 indicates VKTX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.

What is a collar on VKTX?

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 VKTX snapshot

As of June 30, 2026, spot at $39.46, ATM IV 80.32%, IV rank 27.63%, expected move 23.03%. The collar on VKTX 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 31-day expiry.

Why this collar structure on VKTX specifically: IV regime affects collar pricing on both sides; compressed VKTX IV at 80.32% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 23.03% (roughly $9.09 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated VKTX expiries trade a higher absolute premium for lower per-day decay. Position sizing on VKTX should anchor to the underlying notional of $39.46 per share and to the trader's directional view on VKTX stock.

VKTX collar setup

The VKTX 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 VKTX near $39.46, the first option leg uses a $41.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VKTX chain at a 31-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 VKTX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$39.46	long
Sell 1	Call	$41.00	$3.55
Buy 1	Put	$37.00	$1.88

VKTX collar risk and reward

Net Premium / Debit: -$3,778.50
Max Profit (per contract): $321.50
Max Loss (per contract): -$78.50
Breakeven(s): $37.79
Risk / Reward Ratio: 4.096

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.

VKTX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on VKTX. 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%	-$78.50
$8.73	-77.9%	-$78.50
$17.46	-55.8%	-$78.50
$26.18	-33.7%	-$78.50
$34.90	-11.5%	-$78.50
$43.63	+10.6%	+$321.50
$52.35	+32.7%	+$321.50
$61.08	+54.8%	+$321.50
$69.80	+76.9%	+$321.50
$78.52	+99.0%	+$321.50

When traders use collar on VKTX

Collars on VKTX hedge an existing long VKTX 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.

VKTX thesis for this collar

The market-implied 1-standard-deviation range for VKTX extends from approximately $30.37 on the downside to $48.55 on the upside. A VKTX collar hedges an existing long VKTX 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 VKTX IV rank near 27.63% 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 VKTX at 80.32%. As a Healthcare name, VKTX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VKTX-specific events.

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

Frequently asked questions

What is a collar on VKTX?: A collar on VKTX is the collar strategy applied to VKTX (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 VKTX stock trading near $39.46, the strikes shown on this page are snapped to the nearest listed VKTX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are VKTX 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 VKTX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 80.32%), the computed maximum profit is $321.50 per contract and the computed maximum loss is -$78.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a VKTX collar?: The breakeven for the VKTX collar priced on this page is roughly $37.79 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 VKTX market-implied 1-standard-deviation expected move is approximately 23.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on VKTX?: Collars on VKTX hedge an existing long VKTX 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 VKTX implied volatility affect this collar?: VKTX ATM IV is at 80.32% with IV rank near 27.63%, 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.