How are WGS 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 WGS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 83.91%), the computed maximum profit is $400.00 per contract and the computed maximum loss is -$300.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a WGS collar?

The breakeven for the WGS collar priced on this page is roughly $68.00 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 WGS market-implied 1-standard-deviation expected move is approximately 24.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current WGS implied volatility affect this collar?

WGS ATM IV is at 83.91% with IV rank near 35.86%, 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.

WGS Collar Strategy

WGS (GeneDx Holdings Corp.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NASDAQ.

GeneDx Holdings Corp. functions as a health intelligence firm singularly focused on the individual patient. It aims to revolutionize healthcare delivery by deploying advanced artificial intelligence and machine learning capabilities. These sophisticated algorithms are applied to vast, longitudinal clinical and genomic datasets to construct comprehensive, dynamic models of human health, ultimately defining personalized, optimal pathways for each person's well-being. Through its exclusive Centrellis health intelligence platform, the company gains profound insights into both disease states and overall wellness, enabling it to furnish evidence-based solutions for the most critical medical challenges. Eric Schadt established the corporation in October 2015, and its principal offices are located in Stamford, Connecticut.

WGS (GeneDx Holdings Corp.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $2.07B, a beta of 1.97 versus the broader market, a 52-week range of 32.21-170.87, average daily share volume of 1.3M, a public-listing history dating back to 2020, approximately 1K full-time employees. These structural characteristics shape how WGS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.97 indicates WGS 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 WGS?

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 WGS snapshot

As of June 30, 2026, spot at $68.75, ATM IV 83.91%, IV rank 35.86%, expected move 24.06%. The collar on WGS 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 WGS specifically: IV regime affects collar pricing on both sides; mid-range WGS IV at 83.91% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 24.06% (roughly $16.54 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 WGS expiries trade a higher absolute premium for lower per-day decay. Position sizing on WGS should anchor to the underlying notional of $68.75 per share and to the trader's directional view on WGS stock.

WGS collar setup

The WGS 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 WGS near $68.75, the first option leg uses a $72.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed WGS 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 WGS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$68.75	long
Sell 1	Call	$72.00	$5.60
Buy 1	Put	$65.00	$4.85

WGS collar risk and reward

Net Premium / Debit: -$6,800.00
Max Profit (per contract): $400.00
Max Loss (per contract): -$300.00
Breakeven(s): $68.00
Risk / Reward Ratio: 1.333

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.

WGS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on WGS. 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%	-$300.00
$15.21	-77.9%	-$300.00
$30.41	-55.8%	-$300.00
$45.61	-33.7%	-$300.00
$60.81	-11.5%	-$300.00
$76.01	+10.6%	+$400.00
$91.21	+32.7%	+$400.00
$106.41	+54.8%	+$400.00
$121.61	+76.9%	+$400.00
$136.81	+99.0%	+$400.00

When traders use collar on WGS

Collars on WGS hedge an existing long WGS 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.

WGS thesis for this collar

The market-implied 1-standard-deviation range for WGS extends from approximately $52.21 on the downside to $85.29 on the upside. A WGS collar hedges an existing long WGS 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 WGS IV rank near 35.86% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on WGS should anchor more to the directional view and the expected-move geometry. As a Healthcare name, WGS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to WGS-specific events.

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

Frequently asked questions

What is a collar on WGS?: A collar on WGS is the collar strategy applied to WGS (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 WGS stock trading near $68.75, the strikes shown on this page are snapped to the nearest listed WGS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are WGS 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 WGS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 83.91%), the computed maximum profit is $400.00 per contract and the computed maximum loss is -$300.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a WGS collar?: The breakeven for the WGS collar priced on this page is roughly $68.00 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 WGS market-implied 1-standard-deviation expected move is approximately 24.06%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on WGS?: Collars on WGS hedge an existing long WGS 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 WGS implied volatility affect this collar?: WGS ATM IV is at 83.91% with IV rank near 35.86%, 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.