HIGH Collar Strategy
HIGH (Simplify Enhanced Income ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.
The Simplify Enhanced Income ETF (HIGH) seeks to provide monthly income by selling short-dated put and/or call spreads on a variety of equity and fixed income instruments, which may include indices, ETFs or individual securities. The fund is intended to be an alternative high yield solution, as it seeks to provide significant supplemental income to T-bills with low correlation to traditional credit and duration exposure. A sophisticated option-writing algorithm seeks to sell spreads that generate attractive risk-adjusted returns, while an additional layer of risk management helps manage tail risk associated with selling options.
HIGH (Simplify Enhanced Income ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $142.1M, a beta of -0.03 versus the broader market, a 52-week range of 21.16-25.134, average daily share volume of 43K, a public-listing history dating back to 2022. These structural characteristics shape how HIGH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.03 indicates HIGH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HIGH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HIGH?
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 HIGH snapshot
As of May 15, 2026, spot at $21.67, ATM IV 48.80%, IV rank 33.65%, expected move 13.99%. The collar on HIGH 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 34-day expiry.
Why this collar structure on HIGH specifically: IV regime affects collar pricing on both sides; mid-range HIGH IV at 48.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.99% (roughly $3.03 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HIGH expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIGH should anchor to the underlying notional of $21.67 per share and to the trader's directional view on HIGH etf.
HIGH collar setup
The HIGH 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 HIGH near $21.67, the first option leg uses a $23.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIGH chain at a 34-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 HIGH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.67 | long |
| Sell 1 | Call | $23.00 | $0.76 |
| Buy 1 | Put | $21.00 | $0.97 |
HIGH collar risk and reward
- Net Premium / Debit
- -$2,188.00
- Max Profit (per contract)
- $112.00
- Max Loss (per contract)
- -$88.00
- Breakeven(s)
- $21.88
- Risk / Reward Ratio
- 1.273
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.
HIGH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HIGH. 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% | -$88.00 |
| $4.80 | -77.8% | -$88.00 |
| $9.59 | -55.7% | -$88.00 |
| $14.38 | -33.6% | -$88.00 |
| $19.17 | -11.5% | -$88.00 |
| $23.96 | +10.6% | +$112.00 |
| $28.75 | +32.7% | +$112.00 |
| $33.54 | +54.8% | +$112.00 |
| $38.33 | +76.9% | +$112.00 |
| $43.12 | +99.0% | +$112.00 |
When traders use collar on HIGH
Collars on HIGH hedge an existing long HIGH 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.
HIGH thesis for this collar
The market-implied 1-standard-deviation range for HIGH extends from approximately $18.64 on the downside to $24.70 on the upside. A HIGH collar hedges an existing long HIGH 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 HIGH IV rank near 33.65% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HIGH should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HIGH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIGH-specific events.
HIGH 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. HIGH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HIGH alongside the broader basket even when HIGH-specific fundamentals are unchanged. Always rebuild the position from current HIGH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HIGH?
- A collar on HIGH is the collar strategy applied to HIGH (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 HIGH etf trading near $21.67, the strikes shown on this page are snapped to the nearest listed HIGH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HIGH 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 HIGH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.80%), the computed maximum profit is $112.00 per contract and the computed maximum loss is -$88.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HIGH collar?
- The breakeven for the HIGH collar priced on this page is roughly $21.88 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 HIGH market-implied 1-standard-deviation expected move is approximately 13.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HIGH?
- Collars on HIGH hedge an existing long HIGH 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 HIGH implied volatility affect this collar?
- HIGH ATM IV is at 48.80% with IV rank near 33.65%, 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.