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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.49%), the computed maximum profit is $142.50 per contract and the computed maximum loss is -$157.50 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 $34.57 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 HAL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.03%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HAL implied volatility affect this collar?

HAL ATM IV is at 31.49% with IV rank near 10.48%, 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.

HAL Collar Strategy

HAL (Halliburton Company), in the Energy sector, (Oil & Gas Equipment & Services industry), listed on NYSE.

Halliburton Company (HAL) is a global supplier of products and services tailored for the energy sector. Its operations are structured into two primary divisions: Completion and Production, and Drilling and Evaluation. The Completion and Production segment focuses on enhancing well output through techniques like stimulation and sand control. It provides cementing services for well integrity, including casing and bonding, alongside a range of specialized downhole completion tools such as intelligent well systems, liner hangers, and multilateral solutions. This segment also supports production with offerings like coiled tubing, hydraulic workover units, pumping, and nitrogen services, in addition to managing pipeline and process services from initial setup (pre-commissioning, commissioning) through ongoing maintenance and eventual retirement (decommissioning). Furthermore, it supplies electrical submersible pumps and delivers artificial lift solutions.

HAL (Halliburton Company) trades in the Energy sector, specifically Oil & Gas Equipment & Services, with a market capitalization of approximately $27.81B, a trailing P/E of 17.37, a beta of 0.75 versus the broader market, a 52-week range of 20.57-43.59, average daily share volume of 12.5M, a public-listing history dating back to 1972, approximately 46K 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 0.75 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.

HAL snapshot

As of August 14, 2026, spot at $34.55, ATM IV 31.49%, IV rank 10.48%, expected move 9.03%. The collar on HAL 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 28-day expiry.

Why this collar structure on HAL specifically: IV regime affects collar pricing on both sides; compressed HAL IV at 31.49% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.03% (roughly $3.12 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 $34.55 per share and to the trader's directional view on HAL stock.

HAL collar setup

The HAL 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 HAL at $34.55 on that close, the first option leg uses a $36.00 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	$34.55	long
Sell 1	Call	$36.00	$0.58
Buy 1	Put	$33.00	$0.61

HAL collar risk and reward

Net Premium / Debit: -$3,457.50
Max Profit (per contract): $142.50
Max Loss (per contract): -$157.50
Breakeven(s): $34.57
Risk / Reward Ratio: 0.905

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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$157.50
$7.65	-77.9%	-$157.50
$15.29	-55.8%	-$157.50
$22.92	-33.6%	-$157.50
$30.56	-11.5%	-$157.50
$38.20	+10.6%	+$142.50
$45.84	+32.7%	+$142.50
$53.48	+54.8%	+$142.50
$61.11	+76.9%	+$142.50
$68.75	+99.0%	+$142.50

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 $31.43 on the downside to $37.67 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 10.48% 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 HAL at 31.49%. 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 at $34.55 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HAL chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 31.49%), the computed maximum profit is $142.50 per contract and the computed maximum loss is -$157.50 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 $34.57 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 HAL market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.03%; 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 31.49% with IV rank near 10.48%, 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.