How are HOOY 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 HOOY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.50%), the computed maximum profit is -$47.00 per contract and the computed maximum loss is -$247.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HOOY collar?

The breakeven for the HOOY collar priced on this page is no defined breakeven on the modeled curve 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 HOOY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HOOY implied volatility affect this collar?

HOOY ATM IV is at 40.50% with IV rank near 10.44%, 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.

HOOY Collar Strategy

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

The YieldMax HOOD Option Income Strategy ETF (HOOY) is an actively managed fund designed to provide consistent weekly income. It achieves this by executing a strategy of selling either call options or call spreads linked to shares of HOOD. This method allows the fund to collect premiums from these option contracts while also enabling investors to benefit from any appreciation in HOOD's stock price.

HOOY (YieldMax HOOD Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $88.2M, a beta of 2.02 versus the broader market, a 52-week range of 23.85-80.99, average daily share volume of 123K, a public-listing history dating back to 2025. These structural characteristics shape how HOOY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.02 indicates HOOY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HOOY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on HOOY?

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.

HOOY snapshot

As of August 14, 2026, spot at $25.88, ATM IV 40.50%, IV rank 10.44%, expected move 11.61%. The collar on HOOY 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 HOOY specifically: IV regime affects collar pricing on both sides; compressed HOOY IV at 40.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.61% (roughly $3.00 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 HOOY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOOY should anchor to the underlying notional of $25.88 per share and to the trader's directional view on HOOY etf.

HOOY collar setup

The HOOY 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 HOOY at $25.88 on that close, the first option leg uses a $27.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HOOY 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 HOOY shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$25.88	long
Sell 1	Call	$27.00	$0.31
Buy 1	Put	$25.00	$1.90

HOOY collar risk and reward

Net Premium / Debit: -$2,747.00
Max Profit (per contract): -$47.00
Max Loss (per contract): -$247.00
Breakeven(s): None on modeled curve
Risk / Reward Ratio: -0.190

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.

HOOY collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HOOY. 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%	-$247.00
$5.73	-77.9%	-$247.00
$11.45	-55.7%	-$247.00
$17.17	-33.6%	-$247.00
$22.89	-11.5%	-$247.00
$28.62	+10.6%	-$47.00
$34.34	+32.7%	-$47.00
$40.06	+54.8%	-$47.00
$45.78	+76.9%	-$47.00
$51.50	+99.0%	-$47.00

When traders use collar on HOOY

Collars on HOOY hedge an existing long HOOY 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.

HOOY thesis for this collar

The market-implied 1-standard-deviation range for HOOY extends from approximately $22.88 on the downside to $28.88 on the upside. A HOOY collar hedges an existing long HOOY 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 HOOY IV rank near 10.44% 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 HOOY at 40.50%. As a Financial Services name, HOOY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HOOY-specific events.

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

Frequently asked questions

What is a collar on HOOY?: A collar on HOOY is the collar strategy applied to HOOY (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 HOOY etf at $25.88 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HOOY chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HOOY 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 HOOY collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 40.50%), the computed maximum profit is -$47.00 per contract and the computed maximum loss is -$247.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HOOY collar?: The breakeven for the HOOY collar priced on this page is no defined breakeven on the modeled curve 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 HOOY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 11.61%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HOOY?: Collars on HOOY hedge an existing long HOOY 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 HOOY implied volatility affect this collar?: HOOY ATM IV is at 40.50% with IV rank near 10.44%, 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.