EVH Collar Strategy
EVH (Evolent Health, Inc.), in the Healthcare sector, (Medical - Healthcare Information Services industry), listed on NYSE.
Evolent Health, Inc., a healthcare company, through its subsidiary, Evolent Health LLC, provides clinical and administrative solutions to payers and providers in the United States. It operates in two segments, Evolent Health Services and Clinical Solutions. The Evolent Health Services segment provides an integrated administrative and clinical platform for health plan administration and population health management. It offers financial and administrative management services, such as health plan services, risk management, analytics and reporting, and leadership and management; and Identifi, a proprietary technology system that aggregates and analyzes data, manages care workflows, and engages patients, population health performance that delivers patient-centric cost-effective care. The Clinical Solutions segment offers specialty care management services support a range of specialty care delivery stakeholders during their transition from fee-for-service to value-based care, independent of their stage of maturation and specific market dynamics in oncology and cardiology; and holistic total cost of care improvement. The company was founded in 2011 and is headquartered in Arlington, Virginia.
EVH (Evolent Health, Inc.) trades in the Healthcare sector, specifically Medical - Healthcare Information Services, with a market capitalization of approximately $464.5M, a beta of 0.84 versus the broader market, a 52-week range of 2.095-12.065, average daily share volume of 3.1M, a public-listing history dating back to 2015, approximately 5K full-time employees. These structural characteristics shape how EVH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places EVH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on EVH?
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 EVH snapshot
As of May 15, 2026, spot at $3.99, ATM IV 22.40%, IV rank 0.72%, expected move 6.42%. The collar on EVH 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 245-day expiry.
Why this collar structure on EVH specifically: IV regime affects collar pricing on both sides; compressed EVH IV at 22.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.42% (roughly $0.26 on the underlying). The 245-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EVH expiries trade a higher absolute premium for lower per-day decay. Position sizing on EVH should anchor to the underlying notional of $3.99 per share and to the trader's directional view on EVH stock.
EVH collar setup
The EVH 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 EVH near $3.99, the first option leg uses a $4.19 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EVH chain at a 245-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 EVH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $3.99 | long |
| Sell 1 | Call | $4.19 | N/A |
| Buy 1 | Put | $3.79 | N/A |
EVH 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.
EVH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EVH. 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 EVH
Collars on EVH hedge an existing long EVH 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.
EVH thesis for this collar
The market-implied 1-standard-deviation range for EVH extends from approximately $3.73 on the downside to $4.25 on the upside. A EVH collar hedges an existing long EVH 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 EVH IV rank near 0.72% 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 EVH at 22.40%. As a Healthcare name, EVH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EVH-specific events.
EVH 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. EVH positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EVH alongside the broader basket even when EVH-specific fundamentals are unchanged. Always rebuild the position from current EVH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EVH?
- A collar on EVH is the collar strategy applied to EVH (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 EVH stock trading near $3.99, the strikes shown on this page are snapped to the nearest listed EVH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EVH 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 EVH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 22.40%), 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 EVH collar?
- The breakeven for the EVH 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 EVH market-implied 1-standard-deviation expected move is approximately 6.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EVH?
- Collars on EVH hedge an existing long EVH 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 EVH implied volatility affect this collar?
- EVH ATM IV is at 22.40% with IV rank near 0.72%, 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.