HDSN Collar Strategy
HDSN (Hudson Technologies, Inc.), in the Basic Materials sector, (Chemicals - Specialty industry), listed on NASDAQ.
Hudson Technologies, Inc. (HDSN) operates as a dedicated provider of specialized refrigerant services, addressing persistent issues within the refrigeration industry, primarily throughout the United States. The company's core business involves the sale of refrigerants and various industrial gases. It also delivers a comprehensive range of refrigerant management solutions, including the recovery and reprocessing of used refrigerants, the refurbishment of reusable cylinders, and hydrostatic testing. Furthermore, Hudson offers "RefrigerantSide" services, which focus on deep system decontamination to eliminate moisture, oils, and other harmful contaminants from refrigeration systems. Beyond these offerings, Hudson provides its SmartEnergy OPS service, a proprietary web-based platform designed for continuous, real-time monitoring of refrigeration and other energy systems. Additional specialized services encompass Chiller Chemistry and Chill Smart programs.
HDSN (Hudson Technologies, Inc.) trades in the Basic Materials sector, specifically Chemicals - Specialty, with a market capitalization of approximately $233.9M, a trailing P/E of 16.53, a beta of 0.79 versus the broader market, a 52-week range of 4.64-10.52, average daily share volume of 444K, a public-listing history dating back to 1994, approximately 238 full-time employees. These structural characteristics shape how HDSN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.79 places HDSN roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on HDSN?
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 HDSN snapshot
As of June 30, 2026, spot at $5.72, ATM IV 26.10%, IV rank 0.47%, expected move 7.48%. The collar on HDSN 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 17-day expiry.
Why this collar structure on HDSN specifically: IV regime affects collar pricing on both sides; compressed HDSN IV at 26.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.48% (roughly $0.43 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HDSN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HDSN should anchor to the underlying notional of $5.72 per share and to the trader's directional view on HDSN stock.
HDSN collar setup
The HDSN 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 HDSN near $5.72, the first option leg uses a $6.01 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HDSN chain at a 17-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 HDSN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.72 | long |
| Sell 1 | Call | $6.01 | N/A |
| Buy 1 | Put | $5.43 | N/A |
HDSN 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.
HDSN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HDSN. 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 HDSN
Collars on HDSN hedge an existing long HDSN 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.
HDSN thesis for this collar
The market-implied 1-standard-deviation range for HDSN extends from approximately $5.29 on the downside to $6.15 on the upside. A HDSN collar hedges an existing long HDSN 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 HDSN IV rank near 0.47% 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 HDSN at 26.10%. As a Basic Materials name, HDSN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HDSN-specific events.
HDSN 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. HDSN positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HDSN alongside the broader basket even when HDSN-specific fundamentals are unchanged. Always rebuild the position from current HDSN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HDSN?
- A collar on HDSN is the collar strategy applied to HDSN (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 HDSN stock trading near $5.72, the strikes shown on this page are snapped to the nearest listed HDSN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HDSN 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 HDSN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.10%), 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 HDSN collar?
- The breakeven for the HDSN 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 HDSN market-implied 1-standard-deviation expected move is approximately 7.48%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HDSN?
- Collars on HDSN hedge an existing long HDSN 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 HDSN implied volatility affect this collar?
- HDSN ATM IV is at 26.10% with IV rank near 0.47%, 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.