How are HDG 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 HDG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 12.80%), the computed maximum profit is $293.00 per contract and the computed maximum loss is -$307.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HDG collar?

The breakeven for the HDG collar priced on this page is roughly $55.07 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HDG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HDG implied volatility affect this collar?

HDG ATM IV is at 12.80% with IV rank near 1.10%, 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.

HDG Collar Strategy

HDG (ProShares - Hedge Replication ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

This fund strategically invests in a combination of financial instruments, chosen by ProShare Advisors, with the goal of emulating its underlying benchmark's performance. That benchmark endeavors to replicate the risk and return profile typical of the hedge fund asset class, which it achieves by seeking a high correlation to the HFRI Fund Weighted Composite Index (HFRI). The HFRI itself serves as a gauge of the hedge fund industry's overall performance, comprising an equally weighted composite of over 2,000 member funds. This particular fund is categorized as non-diversified.

HDG (ProShares - Hedge Replication ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $26.2M, a beta of 0.33 versus the broader market, a 52-week range of 49.91-55.34, average daily share volume of 2K, a public-listing history dating back to 2011. These structural characteristics shape how HDG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.33 indicates HDG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HDG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on HDG?

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.

HDG snapshot

As of August 14, 2026, spot at $55.09, ATM IV 12.80%, IV rank 1.10%, expected move 3.67%. The collar on HDG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.

Why this collar structure on HDG specifically: IV regime affects collar pricing on both sides; compressed HDG IV at 12.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.67% (roughly $2.02 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HDG expiries trade a higher absolute premium for lower per-day decay. Position sizing on HDG should anchor to the underlying notional of $55.09 per share and to the trader's directional view on HDG etf.

HDG collar setup

The HDG collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HDG at $55.09 on that close, the first option leg uses a $58.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HDG chain at a 7-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 HDG shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$55.09	long
Sell 1	Call	$58.00	$0.06
Buy 1	Put	$52.00	$0.04

HDG collar risk and reward

Net Premium / Debit: -$5,507.00
Max Profit (per contract): $293.00
Max Loss (per contract): -$307.00
Breakeven(s): $55.07
Risk / Reward Ratio: 0.954

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.

HDG collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HDG. 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%	-$307.00
$12.19	-77.9%	-$307.00
$24.37	-55.8%	-$307.00
$36.55	-33.7%	-$307.00
$48.73	-11.5%	-$307.00
$60.91	+10.6%	+$293.00
$73.09	+32.7%	+$293.00
$85.27	+54.8%	+$293.00
$97.45	+76.9%	+$293.00
$109.63	+99.0%	+$293.00

When traders use collar on HDG

Collars on HDG hedge an existing long HDG etf 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.

HDG thesis for this collar

The market-implied 1-standard-deviation range for HDG extends from approximately $53.07 on the downside to $57.11 on the upside. A HDG collar hedges an existing long HDG 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 HDG IV rank near 1.10% 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 HDG at 12.80%. As a Financial Services name, HDG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HDG-specific events.

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

Frequently asked questions

What is a collar on HDG?: A collar on HDG is the collar strategy applied to HDG (etf). 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 HDG etf at $55.09 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HDG chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HDG 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 HDG collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 12.80%), the computed maximum profit is $293.00 per contract and the computed maximum loss is -$307.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HDG collar?: The breakeven for the HDG collar priced on this page is roughly $55.07 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The HDG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HDG?: Collars on HDG hedge an existing long HDG etf 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 HDG implied volatility affect this collar?: HDG ATM IV is at 12.80% with IV rank near 1.10%, 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.