HDV Collar Strategy
HDV (iShares Core High Dividend ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The iShares Core High Dividend ETF endeavors to replicate the performance of a benchmark index, which includes American companies distributing notably high dividends.
HDV (iShares Core High Dividend ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $13.34B, a beta of 0.30 versus the broader market, a 52-week range of 23.516-30.13, average daily share volume of 4.2M, a public-listing history dating back to 2011. These structural characteristics shape how HDV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.30 indicates HDV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HDV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HDV?
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.
HDV snapshot
As of September 30, 2026, spot at $28.02, ATM IV 481.20%, IV rank 100.00%, expected move 137.96%. The collar on HDV below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.
Why this collar structure on HDV specifically: IV regime affects collar pricing on both sides; elevated HDV IV at 481.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 137.96% (roughly $38.66 on the underlying). The 16-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HDV expiries trade a higher absolute premium for lower per-day decay. Position sizing on HDV should anchor to the underlying notional of $28.02 per share and to the trader's directional view on HDV etf.
HDV collar setup
The HDV collar below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With HDV at $28.02 on that close, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HDV chain at a 16-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 HDV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $28.02 | long |
| Sell 1 | Call | $29.00 | $0.14 |
| Buy 1 | Put | $27.00 | $0.12 |
HDV collar risk and reward
- Net Premium / Debit
- -$2,800.00
- Max Profit (per contract)
- $100.00
- Max Loss (per contract)
- -$100.00
- Breakeven(s)
- $28.00
- Risk / Reward Ratio
- 1.000
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.
HDV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HDV. 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% | -$100.00 |
| $6.20 | -77.9% | -$100.00 |
| $12.40 | -55.8% | -$100.00 |
| $18.59 | -33.6% | -$100.00 |
| $24.79 | -11.5% | -$100.00 |
| $30.98 | +10.6% | +$100.00 |
| $37.18 | +32.7% | +$100.00 |
| $43.37 | +54.8% | +$100.00 |
| $49.56 | +76.9% | +$100.00 |
| $55.76 | +99.0% | +$100.00 |
When traders use collar on HDV
Collars on HDV hedge an existing long HDV 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.
HDV thesis for this collar
The market-implied 1-standard-deviation range for HDV extends from approximately $-10.64 on the downside to $66.68 on the upside. A HDV collar hedges an existing long HDV 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 HDV IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on HDV at 481.20%. As a Financial Services name, HDV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HDV-specific events.
HDV 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. HDV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HDV alongside the broader basket even when HDV-specific fundamentals are unchanged. Always rebuild the position from current HDV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HDV?
- A collar on HDV is the collar strategy applied to HDV (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 HDV etf at $28.02 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed HDV chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HDV 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 HDV collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 481.20%), the computed maximum profit is $100.00 per contract and the computed maximum loss is -$100.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HDV collar?
- The breakeven for the HDV collar priced on this page is roughly $28.00 at expiration, derived from the September 30, 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 HDV market-implied 1-standard-deviation expected move in the same options snapshot is approximately 137.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HDV?
- Collars on HDV hedge an existing long HDV 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 HDV implied volatility affect this collar?
- HDV ATM IV is at 481.20% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.