BHYP Collar Strategy
BHYP (Bitwise Hyperliquid ETF), in the Financial Services sector, (Asset Management - Cryptocurrency industry), listed on AMEX.
The Bitwise Hyperliquid ETF (BHYP) aims to replicate the daily price movements of Hyperliquid (HYPE) while simultaneously increasing its holdings through HYPE staking rewards. The fund secures direct exposure to HYPE by maintaining ownership of the cryptocurrency itself. Its Net Asset Value (NAV) is determined by referencing the CF Hyperliquid-Dollar US Settlement Price. Hyperliquid (HYPE) is recognized as a high-speed Layer 1 blockchain specifically engineered for decentralized finance (DeFi) and onchain trading, notably featuring a prominent perpetual futures exchange. The fund intends to dedicate a portion of its HYPE to staking activities, leveraging the benefits provided by these protocols, which are crucial for validating and recording blockchain transactions. HYPE that is staked functions as collateral, becoming temporarily locked within the network.
BHYP (Bitwise Hyperliquid ETF) trades in the Financial Services sector, specifically Asset Management - Cryptocurrency, with a market capitalization of approximately $2.8M, a beta of 0.00 versus the broader market, a 52-week range of 24.18-43.03, average daily share volume of 478K, a public-listing history dating back to 2026. These structural characteristics shape how BHYP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates BHYP has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on BHYP?
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.
BHYP snapshot
As of August 14, 2026, spot at $31.12, ATM IV 77.10%, expected move 22.10%. The collar on BHYP below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on BHYP specifically: IV rank is unavailable in the current snapshot, so regime-based timing for BHYP is inferred from ATM IV at 77.10% alone, with a market-implied 1-standard-deviation move of approximately 22.10% (roughly $6.88 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BHYP expiries trade a higher absolute premium for lower per-day decay. Position sizing on BHYP should anchor to the underlying notional of $31.12 per share and to the trader's directional view on BHYP stock.
BHYP collar setup
The BHYP collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BHYP at $31.12 on that close, the first option leg uses a $33.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BHYP chain at a 35-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 BHYP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $31.12 | long |
| Sell 1 | Call | $33.00 | $1.90 |
| Buy 1 | Put | $30.00 | $2.45 |
BHYP collar risk and reward
- Net Premium / Debit
- -$3,167.00
- Max Profit (per contract)
- $133.00
- Max Loss (per contract)
- -$167.00
- Breakeven(s)
- $31.67
- Risk / Reward Ratio
- 0.796
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.
BHYP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on BHYP. 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% | -$167.00 |
| $6.89 | -77.9% | -$167.00 |
| $13.77 | -55.8% | -$167.00 |
| $20.65 | -33.6% | -$167.00 |
| $27.53 | -11.5% | -$167.00 |
| $34.41 | +10.6% | +$133.00 |
| $41.29 | +32.7% | +$133.00 |
| $48.17 | +54.8% | +$133.00 |
| $55.05 | +76.9% | +$133.00 |
| $61.93 | +99.0% | +$133.00 |
When traders use collar on BHYP
Collars on BHYP hedge an existing long BHYP stock 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.
BHYP thesis for this collar
The market-implied 1-standard-deviation range for BHYP extends from approximately $24.24 on the downside to $38.00 on the upside. A BHYP collar hedges an existing long BHYP 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, BHYP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BHYP-specific events.
BHYP 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. BHYP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BHYP alongside the broader basket even when BHYP-specific fundamentals are unchanged. Always rebuild the position from current BHYP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on BHYP?
- A collar on BHYP is the collar strategy applied to BHYP (stock). 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 BHYP stock at $31.12 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BHYP chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BHYP 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 BHYP collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 77.10%), the computed maximum profit is $133.00 per contract and the computed maximum loss is -$167.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BHYP collar?
- The breakeven for the BHYP collar priced on this page is roughly $31.67 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BHYP market-implied 1-standard-deviation expected move in the same options snapshot is approximately 22.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on BHYP?
- Collars on BHYP hedge an existing long BHYP stock 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 BHYP implied volatility affect this collar?
- Current BHYP ATM IV is 77.10%; IV rank context is unavailable in the current snapshot.