HAL Collar Strategy
HAL (Halliburton Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.
Halliburton Company provides products and services to the energy industry worldwide. It operates in two segments, Completion and Production, and Drilling and Evaluation. The Completion and Production segment offers production enhancement services that include stimulation and sand control services; cementing services, such as well bonding and casing, and casing equipment; completion tools that offer downhole solutions and services, including well completion products and services, intelligent well completions, and service tools, as well as liner hanger, sand control, and multilateral systems; production solutions comprising coiled tubing, hydraulic workover units, downhole tools, and pumping and nitrogen services; and pipeline and process services, such as pre-commissioning, commissioning, maintenance, and decommissioning. This segment also provides electrical submersible pumps, as well as artificial lift services. The Drilling and Evaluation segment offers drilling fluid systems, performance additives, completion fluids, solids control, specialized testing equipment, and waste management services; oilfield completion, production, and downstream water and process treatment chemicals and services; drilling systems and services; wireline and perforating services consists of open-hole logging, and cased-hole and slickline; and drill bits and services comprising roller cone rock bits, fixed cutter bits, hole enlargement, and related downhole tools and services, as well as coring equipment and services. This segment also provides cloud based digital services and artificial intelligence solutions on an open architecture for subsurface insights, integrated well construction, and reservoir and production management; testing and subsea services, such as acquisition and analysis of reservoir information and optimization solutions; and project management and integrated asset management services.
HAL (Halliburton Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $34.27B, a trailing P/E of 22.29, a beta of 0.74 versus the broader market, a 52-week range of 19.38-42.46, average daily share volume of 14.8M, a public-listing history dating back to 1972, approximately 48K full-time employees. These structural characteristics shape how HAL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.74 places HAL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HAL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HAL?
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 HAL snapshot
As of May 15, 2026, spot at $41.46, ATM IV 36.54%, IV rank 34.85%, expected move 10.48%. The collar on HAL 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 28-day expiry.
Why this collar structure on HAL specifically: IV regime affects collar pricing on both sides; mid-range HAL IV at 36.54% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.48% (roughly $4.34 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HAL expiries trade a higher absolute premium for lower per-day decay. Position sizing on HAL should anchor to the underlying notional of $41.46 per share and to the trader's directional view on HAL stock.
HAL collar setup
The HAL 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 HAL near $41.46, the first option leg uses a $44.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HAL chain at a 28-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 HAL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $41.46 | long |
| Sell 1 | Call | $44.00 | $0.69 |
| Buy 1 | Put | $39.00 | $0.72 |
HAL collar risk and reward
- Net Premium / Debit
- -$4,149.00
- Max Profit (per contract)
- $251.00
- Max Loss (per contract)
- -$249.00
- Breakeven(s)
- $41.49
- Risk / Reward Ratio
- 1.008
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.
HAL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HAL. 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% | -$249.00 |
| $9.18 | -77.9% | -$249.00 |
| $18.34 | -55.8% | -$249.00 |
| $27.51 | -33.7% | -$249.00 |
| $36.67 | -11.5% | -$249.00 |
| $45.84 | +10.6% | +$251.00 |
| $55.01 | +32.7% | +$251.00 |
| $64.17 | +54.8% | +$251.00 |
| $73.34 | +76.9% | +$251.00 |
| $82.50 | +99.0% | +$251.00 |
When traders use collar on HAL
Collars on HAL hedge an existing long HAL 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.
HAL thesis for this collar
The market-implied 1-standard-deviation range for HAL extends from approximately $37.12 on the downside to $45.80 on the upside. A HAL collar hedges an existing long HAL 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 HAL IV rank near 34.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HAL should anchor more to the directional view and the expected-move geometry. As a Energy name, HAL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HAL-specific events.
HAL 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. HAL positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HAL alongside the broader basket even when HAL-specific fundamentals are unchanged. Always rebuild the position from current HAL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HAL?
- A collar on HAL is the collar strategy applied to HAL (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 HAL stock trading near $41.46, the strikes shown on this page are snapped to the nearest listed HAL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HAL 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 HAL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 36.54%), the computed maximum profit is $251.00 per contract and the computed maximum loss is -$249.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HAL collar?
- The breakeven for the HAL collar priced on this page is roughly $41.49 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 HAL market-implied 1-standard-deviation expected move is approximately 10.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HAL?
- Collars on HAL hedge an existing long HAL 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 HAL implied volatility affect this collar?
- HAL ATM IV is at 36.54% with IV rank near 34.85%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.