HOOY Collar Strategy
HOOY (YieldMax HOOD Option Income Strategy ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The YieldMax HOOD Option Income Strategy ETF (HOOY) is an actively managed exchange-traded fund that seeks to generate weekly income by selling call options or call spreads on HOOD. The strategy is designed to capture option premiums while providing participation in the share price appreciation of HOOD.
HOOY (YieldMax HOOD Option Income Strategy ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $102.2M, a beta of 1.72 versus the broader market, a 52-week range of 25.852-80.99, average daily share volume of 111K, 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 1.72 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.
Current HOOY snapshot
As of May 15, 2026, spot at $27.86, ATM IV 67.10%, IV rank 42.96%, expected move 19.24%. The collar on HOOY 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 HOOY specifically: IV regime affects collar pricing on both sides; mid-range HOOY IV at 67.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.24% (roughly $5.36 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 HOOY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOOY should anchor to the underlying notional of $27.86 per share and to the trader's directional view on HOOY etf.
HOOY collar setup
The HOOY 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 HOOY near $27.86, the first option leg uses a $29.00 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 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 HOOY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.86 | long |
| Sell 1 | Call | $29.00 | $0.93 |
| Buy 1 | Put | $26.00 | $2.14 |
HOOY collar risk and reward
- Net Premium / Debit
- -$2,907.50
- Max Profit (per contract)
- -$7.50
- Max Loss (per contract)
- -$307.50
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- -0.024
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$307.50 |
| $6.17 | -77.9% | -$307.50 |
| $12.33 | -55.8% | -$307.50 |
| $18.49 | -33.6% | -$307.50 |
| $24.65 | -11.5% | -$307.50 |
| $30.80 | +10.6% | -$7.50 |
| $36.96 | +32.7% | -$7.50 |
| $43.12 | +54.8% | -$7.50 |
| $49.28 | +76.9% | -$7.50 |
| $55.44 | +99.0% | -$7.50 |
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 $22.50 on the downside to $33.22 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 42.96% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HOOY should anchor more to the directional view and the expected-move geometry. 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 trading near $27.86, the strikes shown on this page are snapped to the nearest listed HOOY chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 67.10%), the computed maximum profit is -$7.50 per contract and the computed maximum loss is -$307.50 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 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 HOOY market-implied 1-standard-deviation expected move is approximately 19.24%; 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 67.10% with IV rank near 42.96%, 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.