ZYME Collar Strategy
ZYME (Zymeworks Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Zymeworks Inc. is a biopharmaceutical firm in the clinical development phase, dedicated to identifying, advancing, and bringing to market biological therapies aimed at combating cancer. Its pipeline features two primary experimental treatments: zanidatamab, a cutting-edge bispecific antibody currently undergoing Phase 1 and Phase 2 studies for various malignancies such as those affecting the biliary tract, gastroesophageal region (adenocarcinomas), breast, and colon; and ZW49, an antibody-drug conjugate targeting two sites on the human epidermal growth factor receptor 2 (HER2), which is in Phase 1 trials for advanced or spreading tumors that express HER2. Zymeworks maintains significant alliances with several pharmaceutical leaders, including Merck Sharp & Dohme Research Ltd., Eli Lilly and Company, Bristol-Myers Squibb company, GlaxoSmithKline Intellectual Property Development Ltd., Daiichi Sankyo Co., Ltd., Janssen Biotech, Inc., BeiGene, Ltd., and Exelixis, Inc. Furthermore, it engages in cooperative research and licensing agreements with LEO Pharma A/S, specifically for the exploration, advancement, and market introduction of bispecific antibodies, and with Iconic Therapeutics, Inc. Established in 2003, Zymeworks Inc. operates from its headquarters located in Vancouver, Canada.
ZYME (Zymeworks Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.78B, a beta of 1.14 versus the broader market, a 52-week range of 11.51-29.75, average daily share volume of 656K, a public-listing history dating back to 2017, approximately 299 full-time employees. These structural characteristics shape how ZYME stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.14 places ZYME roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on ZYME?
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 ZYME snapshot
As of June 29, 2026, spot at $23.95, ATM IV 92.40%, IV rank 23.33%, expected move 26.49%. The collar on ZYME 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 18-day expiry.
Why this collar structure on ZYME specifically: IV regime affects collar pricing on both sides; compressed ZYME IV at 92.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 26.49% (roughly $6.34 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ZYME expiries trade a higher absolute premium for lower per-day decay. Position sizing on ZYME should anchor to the underlying notional of $23.95 per share and to the trader's directional view on ZYME stock.
ZYME collar setup
The ZYME 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 ZYME near $23.95, the first option leg uses a $25.15 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ZYME chain at a 18-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 ZYME shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $23.95 | long |
| Sell 1 | Call | $25.15 | N/A |
| Buy 1 | Put | $22.75 | N/A |
ZYME collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
ZYME collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ZYME. 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.
When traders use collar on ZYME
Collars on ZYME hedge an existing long ZYME 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.
ZYME thesis for this collar
The market-implied 1-standard-deviation range for ZYME extends from approximately $17.61 on the downside to $30.29 on the upside. A ZYME collar hedges an existing long ZYME 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 ZYME IV rank near 23.33% 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 ZYME at 92.40%. As a Healthcare name, ZYME options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ZYME-specific events.
ZYME 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. ZYME positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ZYME alongside the broader basket even when ZYME-specific fundamentals are unchanged. Always rebuild the position from current ZYME chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ZYME?
- A collar on ZYME is the collar strategy applied to ZYME (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 ZYME stock trading near $23.95, the strikes shown on this page are snapped to the nearest listed ZYME chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ZYME 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 ZYME collar priced from the end-of-day chain at a 30-day expiry (ATM IV 92.40%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ZYME collar?
- The breakeven for the ZYME collar priced on this page is no defined breakeven on the modeled curve 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 ZYME market-implied 1-standard-deviation expected move is approximately 26.49%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ZYME?
- Collars on ZYME hedge an existing long ZYME 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 ZYME implied volatility affect this collar?
- ZYME ATM IV is at 92.40% with IV rank near 23.33%, 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.