FHB Collar Strategy
FHB (First Hawaiian, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
First Hawaiian, Inc. operates as the holding company for First Hawaiian Bank, providing an extensive array of financial services to both individual consumers and commercial entities throughout the United States. Its activities are organized across three primary segments: Retail Banking, Commercial Banking, and Treasury and Other. The bank facilitates various deposit accounts, including checking, savings, and other specialized deposit products. It also originates diverse loan types such as residential and commercial mortgages, home equity lines of credit, automotive loans and leases, personal lines of credit, installment loans, and financing for small businesses. Additionally, the company offers commercial lease and auto dealer financing. Its comprehensive service offerings extend to credit card services, individual investment and financial planning, insurance protection, trust and estate services, private banking, retirement planning, treasury management, and merchant processing solutions.
FHB (First Hawaiian, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $3.36B, a trailing P/E of 11.84, a beta of 0.72 versus the broader market, a 52-week range of 22.645-30.58, average daily share volume of 2.0M, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how FHB stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.72 places FHB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.84 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FHB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on FHB?
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.
FHB snapshot
As of August 14, 2026, spot at $27.66, ATM IV 24.40%, IV rank 0.50%, expected move 7.00%. The collar on FHB below is built from the 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 FHB specifically: IV regime affects collar pricing on both sides; compressed FHB IV at 24.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.00% (roughly $1.93 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 FHB expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHB should anchor to the underlying notional of $27.66 per share and to the trader's directional view on FHB stock.
FHB collar setup
The FHB 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 FHB at $27.66 on that close, the first option leg uses a $29.04 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHB 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 FHB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.66 | long |
| Sell 1 | Call | $29.04 | N/A |
| Buy 1 | Put | $26.28 | N/A |
FHB 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.
FHB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on FHB. 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 FHB
Collars on FHB hedge an existing long FHB 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.
FHB thesis for this collar
The market-implied 1-standard-deviation range for FHB extends from approximately $25.73 on the downside to $29.59 on the upside. A FHB collar hedges an existing long FHB 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 FHB IV rank near 0.50% 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 FHB at 24.40%. As a Financial Services name, FHB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHB-specific events.
FHB 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. FHB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHB alongside the broader basket even when FHB-specific fundamentals are unchanged. Always rebuild the position from current FHB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on FHB?
- A collar on FHB is the collar strategy applied to FHB (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 FHB stock at $27.66 on the most recent close, the strikes shown on this page are snapped to the nearest listed FHB chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FHB 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 FHB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.40%), 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 FHB collar?
- The breakeven for the FHB collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 FHB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on FHB?
- Collars on FHB hedge an existing long FHB 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 FHB implied volatility affect this collar?
- FHB ATM IV is at 24.40% with IV rank near 0.50%, 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.