PINK Collar Strategy
PINK (Simplify Health Care ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Simplify Health Care ETF (PINK) seeks long term capital appreciation by providing investors with multi-cap exposure to groundbreaking and innovative companies in biotech, medtech, gene therapy, and other fast growing health care related sectors. Michael Taylor serves as lead portfolio manager of the ETF and brings over two decades of experience managing long/short health care equity portfolios at leading hedge funds. PINK is the first 100% pro bono ETF focused on the health care sector and net profits will be donated for the benefit of the Susan G. Komen foundation on an annual basis. PINK: Shares for the Cure Find out more. Benefiting Donations$350,000as of 09/01/25
PINK (Simplify Health Care ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $141.7M, a beta of 0.80 versus the broader market, a 52-week range of 27.56-38.68, average daily share volume of 121K, a public-listing history dating back to 2021. These structural characteristics shape how PINK etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.80 places PINK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PINK pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PINK?
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 PINK snapshot
As of May 15, 2026, spot at $36.59, ATM IV 29.90%, IV rank 25.35%, expected move 8.57%. The collar on PINK 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 63-day expiry.
Why this collar structure on PINK specifically: IV regime affects collar pricing on both sides; compressed PINK IV at 29.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.57% (roughly $3.14 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PINK expiries trade a higher absolute premium for lower per-day decay. Position sizing on PINK should anchor to the underlying notional of $36.59 per share and to the trader's directional view on PINK etf.
PINK collar setup
The PINK 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 PINK near $36.59, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PINK chain at a 63-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 PINK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $36.59 | long |
| Sell 1 | Call | $38.00 | $1.06 |
| Buy 1 | Put | $35.00 | $0.82 |
PINK collar risk and reward
- Net Premium / Debit
- -$3,635.00
- Max Profit (per contract)
- $165.00
- Max Loss (per contract)
- -$135.00
- Breakeven(s)
- $36.35
- Risk / Reward Ratio
- 1.222
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.
PINK collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PINK. 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% | -$135.00 |
| $8.10 | -77.9% | -$135.00 |
| $16.19 | -55.8% | -$135.00 |
| $24.28 | -33.7% | -$135.00 |
| $32.37 | -11.5% | -$135.00 |
| $40.46 | +10.6% | +$165.00 |
| $48.54 | +32.7% | +$165.00 |
| $56.63 | +54.8% | +$165.00 |
| $64.72 | +76.9% | +$165.00 |
| $72.81 | +99.0% | +$165.00 |
When traders use collar on PINK
Collars on PINK hedge an existing long PINK 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.
PINK thesis for this collar
The market-implied 1-standard-deviation range for PINK extends from approximately $33.45 on the downside to $39.73 on the upside. A PINK collar hedges an existing long PINK 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 PINK IV rank near 25.35% 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 PINK at 29.90%. As a Financial Services name, PINK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PINK-specific events.
PINK 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. PINK positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PINK alongside the broader basket even when PINK-specific fundamentals are unchanged. Always rebuild the position from current PINK chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PINK?
- A collar on PINK is the collar strategy applied to PINK (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 PINK etf trading near $36.59, the strikes shown on this page are snapped to the nearest listed PINK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PINK 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 PINK collar priced from the end-of-day chain at a 30-day expiry (ATM IV 29.90%), the computed maximum profit is $165.00 per contract and the computed maximum loss is -$135.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PINK collar?
- The breakeven for the PINK collar priced on this page is roughly $36.35 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 PINK market-implied 1-standard-deviation expected move is approximately 8.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PINK?
- Collars on PINK hedge an existing long PINK 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 PINK implied volatility affect this collar?
- PINK ATM IV is at 29.90% with IV rank near 25.35%, 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.