How are HIYY 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 HIYY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 111.50%), the computed maximum profit is $47.50 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HIYY collar?

The breakeven for the HIYY collar priced on this page is roughly $12.52 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 HIYY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 31.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HIYY implied volatility affect this collar?

HIYY ATM IV is at 111.50% with IV rank near 23.95%, 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.

HIYY Collar Strategy

HIYY (YieldMax HIMS Option Income Strategy ETF), in the Financial Services sector, (Asset Management - Income industry), listed on AMEX.

The YieldMax HIMS Option Income Strategy ETF, known by its ticker HIYY, functions as an actively managed exchange-traded fund. Its primary objective is to produce consistent weekly income for investors. This is accomplished through a strategic approach of selling either call options or call spreads linked to the HIMS stock. The fund's methodology is designed to both secure income from the premiums generated by these options and allow for participation in any potential upward movement of HIMS's share price.

HIYY (YieldMax HIMS Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $721,262, a beta of 0.07 versus the broader market, a 52-week range of 9.53-53.97, average daily share volume of 53K, a public-listing history dating back to 2025. These structural characteristics shape how HIYY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.07 indicates HIYY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HIYY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on HIYY?

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.

HIYY snapshot

As of August 14, 2026, spot at $12.64, ATM IV 111.50%, IV rank 23.95%, expected move 31.97%. The collar on HIYY 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 35-day expiry.

Why this collar structure on HIYY specifically: IV regime affects collar pricing on both sides; compressed HIYY IV at 111.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.97% (roughly $4.04 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HIYY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIYY should anchor to the underlying notional of $12.64 per share and to the trader's directional view on HIYY etf.

HIYY collar setup

The HIYY 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 HIYY at $12.64 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HIYY chain at a 35-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 HIYY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$12.64	long
Sell 1	Call	$13.00	$1.39
Buy 1	Put	$12.00	$1.28

HIYY collar risk and reward

Net Premium / Debit: -$1,252.50
Max Profit (per contract): $47.50
Max Loss (per contract): -$52.50
Breakeven(s): $12.52
Risk / Reward Ratio: 0.905

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.

HIYY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HIYY. 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	-99.9%	-$52.50
$2.80	-77.8%	-$52.50
$5.60	-55.7%	-$52.50
$8.39	-33.6%	-$52.50
$11.18	-11.5%	-$52.50
$13.98	+10.6%	+$47.50
$16.77	+32.7%	+$47.50
$19.57	+54.8%	+$47.50
$22.36	+76.9%	+$47.50
$25.15	+99.0%	+$47.50

When traders use collar on HIYY

Collars on HIYY hedge an existing long HIYY 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.

HIYY thesis for this collar

The market-implied 1-standard-deviation range for HIYY extends from approximately $8.60 on the downside to $16.68 on the upside. A HIYY collar hedges an existing long HIYY 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 HIYY IV rank near 23.95% 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 HIYY at 111.50%. As a Financial Services name, HIYY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HIYY-specific events.

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

Frequently asked questions

What is a collar on HIYY?: A collar on HIYY is the collar strategy applied to HIYY (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 HIYY etf at $12.64 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HIYY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HIYY 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 HIYY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 111.50%), the computed maximum profit is $47.50 per contract and the computed maximum loss is -$52.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HIYY collar?: The breakeven for the HIYY collar priced on this page is roughly $12.52 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 HIYY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 31.97%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HIYY?: Collars on HIYY hedge an existing long HIYY 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 HIYY implied volatility affect this collar?: HIYY ATM IV is at 111.50% with IV rank near 23.95%, 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.