HYS Collar Strategy
HYS (PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund), in the Financial Services sector, (Asset Management - Bonds industry), listed on AMEX.
The Fund seeks to provide total return that closely corresponds, before fees and expenses, to the total return of The BofA Merrill Lynch 0-5 Year US High Yield Constrained IndexSM
HYS (PIMCO 0-5 Year High Yield Corporate Bond Index Exchange-Traded Fund) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $1.71B, a beta of 0.47 versus the broader market, a 52-week range of 92.3-95.88, average daily share volume of 140K, a public-listing history dating back to 2011. These structural characteristics shape how HYS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.47 indicates HYS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HYS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HYS?
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 HYS snapshot
As of May 15, 2026, spot at $93.08, ATM IV 22.20%, IV rank 30.48%, expected move 6.36%. The collar on HYS 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 HYS specifically: IV regime affects collar pricing on both sides; mid-range HYS IV at 22.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.36% (roughly $5.92 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 HYS expiries trade a higher absolute premium for lower per-day decay. Position sizing on HYS should anchor to the underlying notional of $93.08 per share and to the trader's directional view on HYS etf.
HYS collar setup
The HYS 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 HYS near $93.08, the first option leg uses a $97.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HYS 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 HYS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $93.08 | long |
| Sell 1 | Call | $97.73 | N/A |
| Buy 1 | Put | $88.43 | N/A |
HYS collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
HYS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HYS. 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.
When traders use collar on HYS
Collars on HYS hedge an existing long HYS 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.
HYS thesis for this collar
The market-implied 1-standard-deviation range for HYS extends from approximately $87.16 on the downside to $99.00 on the upside. A HYS collar hedges an existing long HYS 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 HYS IV rank near 30.48% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HYS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, HYS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HYS-specific events.
HYS 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. HYS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HYS alongside the broader basket even when HYS-specific fundamentals are unchanged. Always rebuild the position from current HYS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HYS?
- A collar on HYS is the collar strategy applied to HYS (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 HYS etf trading near $93.08, the strikes shown on this page are snapped to the nearest listed HYS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HYS 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 HYS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HYS collar?
- The breakeven for the HYS 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 HYS market-implied 1-standard-deviation expected move is approximately 6.36%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HYS?
- Collars on HYS hedge an existing long HYS 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 HYS implied volatility affect this collar?
- HYS ATM IV is at 22.20% with IV rank near 30.48%, 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.