HGTY Collar Strategy
HGTY (Hagerty, Inc.), in the Financial Services sector, (Insurance - Property & Casualty industry), listed on NYSE.
Hagerty, Inc. provides insurance agency services worldwide. It offers automobile and boat insurance products; and reinsurance products. The company also provides Hagerty Media, which publishes contents through the HDC Magazine, video content, YouTube channel; HDC that offers subscription based products and services, including HDC Magazine, automotive enthusiast events, proprietary vehicle valuation tools, emergency roadside services, and special vehicle-related discounts; HVT, a valuation tool used by the customer to access current and historic pricing data of collector car, truck, SUV, and motorcycle models; and Hagerty Events, an eclectic mix of small and large events. In addition, it offers DriveShare, a peer-to-peer rental platform for collector and cool vehicles; Motorsport Reg, a motorsport membership, licensing, and event online management system that automates event listings, registration, and payment processing for various motorsport events; and Hagerty Garage + Social, a platform that provides clubhouses and car storage facilities. The company is headquartered in Traverse City, Michigan.
HGTY (Hagerty, Inc.) trades in the Financial Services sector, specifically Insurance - Property & Casualty, with a market capitalization of approximately $3.53B, a trailing P/E of 28.73, a beta of 0.83 versus the broader market, a 52-week range of 8.81-14, average daily share volume of 168K, a public-listing history dating back to 2021, approximately 2K full-time employees. These structural characteristics shape how HGTY stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places HGTY roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on HGTY?
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 HGTY snapshot
As of May 15, 2026, spot at $10.37, ATM IV 70.40%, IV rank 14.11%, expected move 20.18%. The collar on HGTY 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 HGTY specifically: IV regime affects collar pricing on both sides; compressed HGTY IV at 70.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.18% (roughly $2.09 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 HGTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on HGTY should anchor to the underlying notional of $10.37 per share and to the trader's directional view on HGTY stock.
HGTY collar setup
The HGTY 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 HGTY near $10.37, the first option leg uses a $10.89 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HGTY 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 HGTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.37 | long |
| Sell 1 | Call | $10.89 | N/A |
| Buy 1 | Put | $9.85 | N/A |
HGTY 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.
HGTY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HGTY. 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 HGTY
Collars on HGTY hedge an existing long HGTY 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.
HGTY thesis for this collar
The market-implied 1-standard-deviation range for HGTY extends from approximately $8.28 on the downside to $12.46 on the upside. A HGTY collar hedges an existing long HGTY 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 HGTY IV rank near 14.11% 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 HGTY at 70.40%. As a Financial Services name, HGTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HGTY-specific events.
HGTY 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. HGTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HGTY alongside the broader basket even when HGTY-specific fundamentals are unchanged. Always rebuild the position from current HGTY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HGTY?
- A collar on HGTY is the collar strategy applied to HGTY (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 HGTY stock trading near $10.37, the strikes shown on this page are snapped to the nearest listed HGTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HGTY 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 HGTY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.40%), 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 HGTY collar?
- The breakeven for the HGTY 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 HGTY market-implied 1-standard-deviation expected move is approximately 20.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HGTY?
- Collars on HGTY hedge an existing long HGTY 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 HGTY implied volatility affect this collar?
- HGTY ATM IV is at 70.40% with IV rank near 14.11%, 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.