How are XHS 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 XHS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.10%), the computed maximum profit is $725.00 per contract and the computed maximum loss is -$575.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XHS collar?

The breakeven for the XHS collar priced on this page is roughly $112.75 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 XHS market-implied 1-standard-deviation expected move is approximately 5.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XHS implied volatility affect this collar?

XHS ATM IV is at 20.10% with IV rank near 1.10%, 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.

XHS Collar Strategy

XHS (State Street SPDR S&P Health Care Services ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Health Care Services ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of S&P Health Care Services Select Industry Index (the "Index")Seeks to provide exposure to health care services segment of the S&P TMI, which comprises the following sub-industries: Health Care Distributors, Health Care Facilities, Health Care Services, and Managed Health CareSeeks to track a modified equal weighted index which provides the potential for unconcentrated industry exposure across large, mid and small cap stocksAllows investors to take strategic or tactical positions at a more targeted level than traditional sector based investing

XHS (State Street SPDR S&P Health Care Services ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $84.6M, a beta of 1.10 versus the broader market, a 52-week range of 87.64-113.79, average daily share volume of 6K, a public-listing history dating back to 2011. These structural characteristics shape how XHS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.10 places XHS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. XHS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on XHS?

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 XHS snapshot

As of May 15, 2026, spot at $112.63, ATM IV 20.10%, IV rank 1.10%, expected move 5.76%. The collar on XHS 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 XHS specifically: IV regime affects collar pricing on both sides; compressed XHS IV at 20.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.76% (roughly $6.49 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 XHS expiries trade a higher absolute premium for lower per-day decay. Position sizing on XHS should anchor to the underlying notional of $112.63 per share and to the trader's directional view on XHS etf.

XHS collar setup

The XHS 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 XHS near $112.63, the first option leg uses a $120.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XHS 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 XHS shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$112.63	long
Sell 1	Call	$120.00	$0.48
Buy 1	Put	$107.00	$0.60

XHS collar risk and reward

Net Premium / Debit: -$11,275.00
Max Profit (per contract): $725.00
Max Loss (per contract): -$575.00
Breakeven(s): $112.75
Risk / Reward Ratio: 1.261

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.

XHS collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on XHS. 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%	-$575.00
$24.91	-77.9%	-$575.00
$49.81	-55.8%	-$575.00
$74.72	-33.7%	-$575.00
$99.62	-11.6%	-$575.00
$124.52	+10.6%	+$725.00
$149.42	+32.7%	+$725.00
$174.32	+54.8%	+$725.00
$199.23	+76.9%	+$725.00
$224.13	+99.0%	+$725.00

When traders use collar on XHS

Collars on XHS hedge an existing long XHS 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.

XHS thesis for this collar

The market-implied 1-standard-deviation range for XHS extends from approximately $106.14 on the downside to $119.12 on the upside. A XHS collar hedges an existing long XHS 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 XHS IV rank near 1.10% 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 XHS at 20.10%. As a Financial Services name, XHS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XHS-specific events.

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

Frequently asked questions

What is a collar on XHS?: A collar on XHS is the collar strategy applied to XHS (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 XHS etf trading near $112.63, the strikes shown on this page are snapped to the nearest listed XHS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are XHS 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 XHS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.10%), the computed maximum profit is $725.00 per contract and the computed maximum loss is -$575.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XHS collar?: The breakeven for the XHS collar priced on this page is roughly $112.75 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 XHS market-implied 1-standard-deviation expected move is approximately 5.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on XHS?: Collars on XHS hedge an existing long XHS 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 XHS implied volatility affect this collar?: XHS ATM IV is at 20.10% with IV rank near 1.10%, 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.