HIYY Collar Strategy
HIYY (YieldMax HIMS Option Income Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The YieldMax HIMS Option Income Strategy ETF (HIYY) is an actively managed exchange-traded fund that seeks to generate weekly income by selling call options or call spreads on HIMS. The strategy is designed to capture option premiums while providing participation in the share price appreciation of HIMS.
HIYY (YieldMax HIMS Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $827,337, a beta of 0.39 versus the broader market, a 52-week range of 9.53-53.97, average daily share volume of 98K, 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 0.39 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.
Current HIYY snapshot
As of May 15, 2026, spot at $14.35, ATM IV 105.10%, IV rank 39.76%, expected move 30.13%. The collar on HIYY 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 HIYY specifically: IV regime affects collar pricing on both sides; mid-range HIYY IV at 105.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 30.13% (roughly $4.32 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 HIYY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HIYY should anchor to the underlying notional of $14.35 per share and to the trader's directional view on HIYY etf.
HIYY collar setup
The HIYY 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 HIYY near $14.35, the first option leg uses a $15.00 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 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 HIYY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.35 | long |
| Sell 1 | Call | $15.00 | $1.12 |
| Buy 1 | Put | $14.00 | $1.73 |
HIYY collar risk and reward
- Net Premium / Debit
- -$1,495.50
- Max Profit (per contract)
- $4.50
- Max Loss (per contract)
- -$95.50
- Breakeven(s)
- $14.96
- Risk / Reward Ratio
- 0.047
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$95.50 |
| $3.18 | -77.8% | -$95.50 |
| $6.35 | -55.7% | -$95.50 |
| $9.53 | -33.6% | -$95.50 |
| $12.70 | -11.5% | -$95.50 |
| $15.87 | +10.6% | +$4.50 |
| $19.04 | +32.7% | +$4.50 |
| $22.21 | +54.8% | +$4.50 |
| $25.38 | +76.9% | +$4.50 |
| $28.56 | +99.0% | +$4.50 |
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 $10.03 on the downside to $18.67 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 39.76% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HIYY should anchor more to the directional view and the expected-move geometry. 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 trading near $14.35, the strikes shown on this page are snapped to the nearest listed HIYY chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 105.10%), the computed maximum profit is $4.50 per contract and the computed maximum loss is -$95.50 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 $14.96 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 HIYY market-implied 1-standard-deviation expected move is approximately 30.13%; 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 105.10% with IV rank near 39.76%, 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.