How are HOOX 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 HOOX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 131.10%), the computed maximum profit is $162.50 per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HOOX collar?

The breakeven for the HOOX collar priced on this page is roughly $34.37 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 HOOX market-implied 1-standard-deviation expected move is approximately 37.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HOOX implied volatility affect this collar?

HOOX ATM IV is at 131.10% with IV rank near 37.69%, 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.

HOOX Collar Strategy

HOOX (Daily Target 2X Long HOOD ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.

The Defiance Daily Target 2X Long HOOD ETF (referred to as "the Fund") aims to achieve daily returns equivalent to two hundred percent (200%) of the daily movement in Robinhood Markets, Inc.'s share price (Nasdaq: HOOD). Due to its daily leveraged strategy, the Fund differs considerably from typical exchange-traded funds, and there's no guarantee it will consistently achieve its stated aim. Crucially, its design means it should not be expected to mirror two times the cumulative return of HOOD over timelines longer than a single trading day.

HOOX (Daily Target 2X Long HOOD ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $20.1M, a beta of 6.71 versus the broader market, a 52-week range of 16.44-154.38, average daily share volume of 141K, a public-listing history dating back to 2025. These structural characteristics shape how HOOX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 6.71 indicates HOOX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HOOX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on HOOX?

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 HOOX snapshot

As of June 30, 2026, spot at $34.30, ATM IV 131.10%, IV rank 37.69%, expected move 37.59%. The collar on HOOX 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 17-day expiry.

Why this collar structure on HOOX specifically: IV regime affects collar pricing on both sides; mid-range HOOX IV at 131.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 37.59% (roughly $12.89 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HOOX expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOOX should anchor to the underlying notional of $34.30 per share and to the trader's directional view on HOOX etf.

HOOX collar setup

The HOOX 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 HOOX near $34.30, the first option leg uses a $36.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HOOX chain at a 17-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 HOOX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$34.30	long
Sell 1	Call	$36.00	$3.15
Buy 1	Put	$33.00	$3.23

HOOX collar risk and reward

Net Premium / Debit: -$3,437.50
Max Profit (per contract): $162.50
Max Loss (per contract): -$137.50
Breakeven(s): $34.37
Risk / Reward Ratio: 1.182

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.

HOOX collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HOOX. 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%	-$137.50
$7.59	-77.9%	-$137.50
$15.18	-55.8%	-$137.50
$22.76	-33.6%	-$137.50
$30.34	-11.5%	-$137.50
$37.92	+10.6%	+$162.50
$45.51	+32.7%	+$162.50
$53.09	+54.8%	+$162.50
$60.67	+76.9%	+$162.50
$68.26	+99.0%	+$162.50

When traders use collar on HOOX

Collars on HOOX hedge an existing long HOOX 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.

HOOX thesis for this collar

The market-implied 1-standard-deviation range for HOOX extends from approximately $21.41 on the downside to $47.19 on the upside. A HOOX collar hedges an existing long HOOX 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 HOOX IV rank near 37.69% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HOOX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HOOX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HOOX-specific events.

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

Frequently asked questions

What is a collar on HOOX?: A collar on HOOX is the collar strategy applied to HOOX (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 HOOX etf trading near $34.30, the strikes shown on this page are snapped to the nearest listed HOOX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HOOX 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 HOOX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 131.10%), the computed maximum profit is $162.50 per contract and the computed maximum loss is -$137.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HOOX collar?: The breakeven for the HOOX collar priced on this page is roughly $34.37 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 HOOX market-implied 1-standard-deviation expected move is approximately 37.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HOOX?: Collars on HOOX hedge an existing long HOOX 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 HOOX implied volatility affect this collar?: HOOX ATM IV is at 131.10% with IV rank near 37.69%, 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.