STHH Collar Strategy
STHH (STMicroelectronics NV ADRhedged), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Under typical circumstances, this investment series primarily commits a minimum of 95% of its total assets to American Depositary Receipts (ADRs) issued by STMicroelectronics NV. To manage potential currency risk, the fund also implements a specific currency swap strategy aimed at hedging against volatility in the exchange rate between the U.S. dollar and the Euro. It's important to note that this fund is not diversified.
STHH (STMicroelectronics NV ADRhedged) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.4M, a beta of 2.86 versus the broader market, a 52-week range of 43.299-162.57, average daily share volume of 3K, a public-listing history dating back to 2025. These structural characteristics shape how STHH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.86 indicates STHH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. STHH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on STHH?
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 STHH snapshot
As of June 29, 2026, spot at $149.89, ATM IV 77.30%, expected move 22.16%. The collar on STHH 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 18-day expiry.
Why this collar structure on STHH specifically: IV rank is unavailable in the current snapshot, so regime-based timing for STHH is inferred from ATM IV at 77.30% alone, with a market-implied 1-standard-deviation move of approximately 22.16% (roughly $33.22 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated STHH expiries trade a higher absolute premium for lower per-day decay. Position sizing on STHH should anchor to the underlying notional of $149.89 per share and to the trader's directional view on STHH etf.
STHH collar setup
The STHH 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 STHH near $149.89, the first option leg uses a $155.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed STHH chain at a 18-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 STHH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $149.89 | long |
| Sell 1 | Call | $155.00 | $7.95 |
| Buy 1 | Put | $140.00 | $6.10 |
STHH collar risk and reward
- Net Premium / Debit
- -$14,804.00
- Max Profit (per contract)
- $696.00
- Max Loss (per contract)
- -$804.00
- Breakeven(s)
- $148.04
- Risk / Reward Ratio
- 0.866
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.
STHH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on STHH. 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% | -$804.00 |
| $33.15 | -77.9% | -$804.00 |
| $66.29 | -55.8% | -$804.00 |
| $99.43 | -33.7% | -$804.00 |
| $132.57 | -11.6% | -$804.00 |
| $165.71 | +10.6% | +$696.00 |
| $198.85 | +32.7% | +$696.00 |
| $231.99 | +54.8% | +$696.00 |
| $265.13 | +76.9% | +$696.00 |
| $298.27 | +99.0% | +$696.00 |
When traders use collar on STHH
Collars on STHH hedge an existing long STHH 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.
STHH thesis for this collar
The market-implied 1-standard-deviation range for STHH extends from approximately $116.67 on the downside to $183.11 on the upside. A STHH collar hedges an existing long STHH 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. As a Financial Services name, STHH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to STHH-specific events.
STHH 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. STHH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move STHH alongside the broader basket even when STHH-specific fundamentals are unchanged. Always rebuild the position from current STHH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on STHH?
- A collar on STHH is the collar strategy applied to STHH (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 STHH etf trading near $149.89, the strikes shown on this page are snapped to the nearest listed STHH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are STHH 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 STHH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 77.30%), the computed maximum profit is $696.00 per contract and the computed maximum loss is -$804.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a STHH collar?
- The breakeven for the STHH collar priced on this page is roughly $148.04 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 STHH market-implied 1-standard-deviation expected move is approximately 22.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on STHH?
- Collars on STHH hedge an existing long STHH 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 STHH implied volatility affect this collar?
- Current STHH ATM IV is 77.30%; IV rank context is unavailable in the current snapshot.