How are XENE 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 XENE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $401.00 per contract and the computed maximum loss is -$99.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XENE collar?

The breakeven for the XENE collar priced on this page is roughly $53.49 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 XENE market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XENE implied volatility affect this collar?

XENE ATM IV is at 42.90% with IV rank near 5.83%, 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.

XENE Collar Strategy

XENE (Xenon Pharmaceuticals Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Xenon Pharmaceuticals Inc., a clinical-stage biopharmaceutical company, engages in developing therapeutics to treat patients with neurological disorders in Canada. Its clinical development pipeline includes XEN496, A Kv7 potassium channel opener that is Phase III clinical trials for the treatment of KCNQ2 developmental and epilepsy encephalopathy; and XEN1101, A Kv7 potassium channel opener, which is in Phase II clinical trial for the treatment of epilepsy and other neurological disorders. The company's product candidates also comprise NBI-921352, a selective Nav1.6 sodium channel inhibitor that is in Phase II clinical trials for the treatment of SCN8A developmental and epileptic encephalopathy, and other potential indications, including adult focal epilepsy; and XEN007, A central nervous system-acting calcium channel modulator, which is in Phase II clinical trials. It has a license and collaboration agreement with the Neurocrine Biosciences, Inc. to develop treatments for epilepsy; and with Flexion Therapeutics, Inc. to develop PCRX301 (XEN402, a Nav1.7 inhibitor) for the treatment of post-operative pain. Xenon Pharmaceuticals Inc. was incorporated in 1996 and is headquartered in Burnaby, Canada.

XENE (Xenon Pharmaceuticals Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $4.41B, a beta of 0.65 versus the broader market, a 52-week range of 28.19-63.95, average daily share volume of 1.4M, a public-listing history dating back to 2014, approximately 316 full-time employees. These structural characteristics shape how XENE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.65 indicates XENE 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 XENE?

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 XENE snapshot

As of May 15, 2026, spot at $54.39, ATM IV 42.90%, IV rank 5.83%, expected move 12.30%. The collar on XENE 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 XENE specifically: IV regime affects collar pricing on both sides; compressed XENE IV at 42.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.30% (roughly $6.69 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 XENE expiries trade a higher absolute premium for lower per-day decay. Position sizing on XENE should anchor to the underlying notional of $54.39 per share and to the trader's directional view on XENE stock.

XENE collar setup

The XENE 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 XENE near $54.39, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XENE 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 XENE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$54.39	long
Sell 1	Call	$57.50	$3.18
Buy 1	Put	$52.50	$2.28

XENE collar risk and reward

Net Premium / Debit: -$5,349.00
Max Profit (per contract): $401.00
Max Loss (per contract): -$99.00
Breakeven(s): $53.49
Risk / Reward Ratio: 4.051

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.

XENE collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on XENE. 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	-100.0%	-$99.00
$12.03	-77.9%	-$99.00
$24.06	-55.8%	-$99.00
$36.08	-33.7%	-$99.00
$48.11	-11.5%	-$99.00
$60.13	+10.6%	+$401.00
$72.16	+32.7%	+$401.00
$84.18	+54.8%	+$401.00
$96.21	+76.9%	+$401.00
$108.23	+99.0%	+$401.00

When traders use collar on XENE

Collars on XENE hedge an existing long XENE 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.

XENE thesis for this collar

The market-implied 1-standard-deviation range for XENE extends from approximately $47.70 on the downside to $61.08 on the upside. A XENE collar hedges an existing long XENE 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 XENE IV rank near 5.83% 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 XENE at 42.90%. As a Healthcare name, XENE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XENE-specific events.

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

Frequently asked questions

What is a collar on XENE?: A collar on XENE is the collar strategy applied to XENE (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 XENE stock trading near $54.39, the strikes shown on this page are snapped to the nearest listed XENE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XENE 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 XENE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.90%), the computed maximum profit is $401.00 per contract and the computed maximum loss is -$99.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XENE collar?: The breakeven for the XENE collar priced on this page is roughly $53.49 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 XENE market-implied 1-standard-deviation expected move is approximately 12.30%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on XENE?: Collars on XENE hedge an existing long XENE 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 XENE implied volatility affect this collar?: XENE ATM IV is at 42.90% with IV rank near 5.83%, 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.