HCA Collar Strategy
HCA (HCA Healthcare, Inc.), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.
HCA Healthcare, Inc., through its subsidiaries, provides health care services company in the United States. The company operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy. It also operates outpatient health care facilities consisting of freestanding ambulatory surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices, and various other facilities. In addition, the company operates psychiatric hospitals, which provide therapeutic programs comprising child, adolescent and adult psychiatric care, adolescent and adult alcohol, drug abuse treatment, and counseling services. As of December 31, 2021, it operated 182 hospitals, including 175 general and acute care hospitals, five psychiatric hospitals, and two rehabilitation hospitals; 125 freestanding surgery centers; and 21 freestanding endoscopy centers in 20 states and England. The company was formerly known as HCA Holdings, Inc.
HCA (HCA Healthcare, Inc.) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $94.85B, a trailing P/E of 14.26, a beta of 1.19 versus the broader market, a 52-week range of 330-556.52, average daily share volume of 1.2M, a public-listing history dating back to 2011, approximately 320K full-time employees. These structural characteristics shape how HCA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.19 places HCA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HCA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HCA?
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 HCA snapshot
As of May 15, 2026, spot at $424.83, ATM IV 28.80%, IV rank 35.10%, expected move 8.26%. The collar on HCA 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 34-day expiry.
Why this collar structure on HCA specifically: IV regime affects collar pricing on both sides; mid-range HCA IV at 28.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.26% (roughly $35.08 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HCA expiries trade a higher absolute premium for lower per-day decay. Position sizing on HCA should anchor to the underlying notional of $424.83 per share and to the trader's directional view on HCA stock.
HCA collar setup
The HCA 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 HCA near $424.83, the first option leg uses a $445.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HCA chain at a 34-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 HCA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $424.83 | long |
| Sell 1 | Call | $445.00 | $7.20 |
| Buy 1 | Put | $405.00 | $6.65 |
HCA collar risk and reward
- Net Premium / Debit
- -$42,428.00
- Max Profit (per contract)
- $2,072.00
- Max Loss (per contract)
- -$1,928.00
- Breakeven(s)
- $424.28
- Risk / Reward Ratio
- 1.075
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.
HCA collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HCA. 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% | -$1,928.00 |
| $93.94 | -77.9% | -$1,928.00 |
| $187.87 | -55.8% | -$1,928.00 |
| $281.80 | -33.7% | -$1,928.00 |
| $375.73 | -11.6% | -$1,928.00 |
| $469.67 | +10.6% | +$2,072.00 |
| $563.60 | +32.7% | +$2,072.00 |
| $657.53 | +54.8% | +$2,072.00 |
| $751.46 | +76.9% | +$2,072.00 |
| $845.39 | +99.0% | +$2,072.00 |
When traders use collar on HCA
Collars on HCA hedge an existing long HCA 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.
HCA thesis for this collar
The market-implied 1-standard-deviation range for HCA extends from approximately $389.75 on the downside to $459.91 on the upside. A HCA collar hedges an existing long HCA 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 HCA IV rank near 35.10% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HCA should anchor more to the directional view and the expected-move geometry. As a Healthcare name, HCA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HCA-specific events.
HCA 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. HCA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HCA alongside the broader basket even when HCA-specific fundamentals are unchanged. Always rebuild the position from current HCA chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HCA?
- A collar on HCA is the collar strategy applied to HCA (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 HCA stock trading near $424.83, the strikes shown on this page are snapped to the nearest listed HCA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HCA 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 HCA collar priced from the end-of-day chain at a 30-day expiry (ATM IV 28.80%), the computed maximum profit is $2,072.00 per contract and the computed maximum loss is -$1,928.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HCA collar?
- The breakeven for the HCA collar priced on this page is roughly $424.28 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 HCA market-implied 1-standard-deviation expected move is approximately 8.26%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HCA?
- Collars on HCA hedge an existing long HCA 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 HCA implied volatility affect this collar?
- HCA ATM IV is at 28.80% with IV rank near 35.10%, 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.