VRDN Collar Strategy
VRDN (Viridian Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Viridian Therapeutics, Inc., a biotechnology company, develops treatments for patients suffering from serious diseases. It develops VRDN-001, a humanized monoclonal anti-IGF-1R antibody that is in Phase 1/2 clinical trial for the treatment of thyroid eye disease (TED); VRDN-002, an IGF-1R antibody, which is in Phase 1 clinical trial; and VRDN-003, a therapeutic antibody targeting IGF-1R for the treatment of TED. The company was formerly known as Miragen Therapeutics, Inc. and changed its name to Viridian Therapeutics, Inc. in January 2021. Viridian Therapeutics, Inc. was founded in 2006 and is headquartered in Waltham, Massachusetts.
VRDN (Viridian Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.45B, a beta of 0.82 versus the broader market, a 52-week range of 12.133-34.29, average daily share volume of 2.8M, a public-listing history dating back to 2014, approximately 143 full-time employees. These structural characteristics shape how VRDN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places VRDN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on VRDN?
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 VRDN snapshot
As of May 15, 2026, spot at $16.80, ATM IV 67.90%, IV rank 9.76%, expected move 19.47%. The collar on VRDN 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 VRDN specifically: IV regime affects collar pricing on both sides; compressed VRDN IV at 67.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.47% (roughly $3.27 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 VRDN expiries trade a higher absolute premium for lower per-day decay. Position sizing on VRDN should anchor to the underlying notional of $16.80 per share and to the trader's directional view on VRDN stock.
VRDN collar setup
The VRDN 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 VRDN near $16.80, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed VRDN 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 VRDN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $16.80 | long |
| Sell 1 | Call | $18.00 | $2.15 |
| Buy 1 | Put | $16.00 | $1.75 |
VRDN collar risk and reward
- Net Premium / Debit
- -$1,640.00
- Max Profit (per contract)
- $160.00
- Max Loss (per contract)
- -$40.00
- Breakeven(s)
- $16.40
- Risk / Reward Ratio
- 4.000
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.
VRDN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on VRDN. 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% | -$40.00 |
| $3.72 | -77.8% | -$40.00 |
| $7.44 | -55.7% | -$40.00 |
| $11.15 | -33.6% | -$40.00 |
| $14.86 | -11.5% | -$40.00 |
| $18.58 | +10.6% | +$160.00 |
| $22.29 | +32.7% | +$160.00 |
| $26.00 | +54.8% | +$160.00 |
| $29.72 | +76.9% | +$160.00 |
| $33.43 | +99.0% | +$160.00 |
When traders use collar on VRDN
Collars on VRDN hedge an existing long VRDN 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.
VRDN thesis for this collar
The market-implied 1-standard-deviation range for VRDN extends from approximately $13.53 on the downside to $20.07 on the upside. A VRDN collar hedges an existing long VRDN 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 VRDN IV rank near 9.76% 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 VRDN at 67.90%. As a Healthcare name, VRDN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to VRDN-specific events.
VRDN 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. VRDN positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move VRDN alongside the broader basket even when VRDN-specific fundamentals are unchanged. Always rebuild the position from current VRDN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on VRDN?
- A collar on VRDN is the collar strategy applied to VRDN (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 VRDN stock trading near $16.80, the strikes shown on this page are snapped to the nearest listed VRDN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are VRDN 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 VRDN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 67.90%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a VRDN collar?
- The breakeven for the VRDN collar priced on this page is roughly $16.40 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 VRDN market-implied 1-standard-deviation expected move is approximately 19.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on VRDN?
- Collars on VRDN hedge an existing long VRDN 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 VRDN implied volatility affect this collar?
- VRDN ATM IV is at 67.90% with IV rank near 9.76%, 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.