How are HII 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 HII collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.40%), the computed maximum profit is $1,284.00 per contract and the computed maximum loss is -$1,716.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HII collar?

The breakeven for the HII collar priced on this page is roughly $327.16 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 HII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HII implied volatility affect this collar?

HII ATM IV is at 28.40% with IV rank near 13.92%, 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.

HII Collar Strategy

HII (Huntington Ingalls Industries, Inc.), in the Industrials sector, (Aerospace & Defense industry), listed on NYSE.

Huntington Ingalls Industries, Inc. (HII) stands as a prominent American enterprise specializing in the comprehensive lifecycle management of military vessels, encompassing their design, construction, modernization, and maintenance. The company's diverse operations are segmented into three core divisions: Ingalls Shipbuilding, Newport News Shipbuilding, and Technical Solutions. HII is a primary builder of non-nuclear ships, delivering amphibious assault ships, expeditionary warfare vessels, surface combatants, and national security cutters to both the U.S. Navy and U.S. Coast Guard. Furthermore, it plays a critical role in providing nuclear-powered ships, including aircraft carriers and submarines, along with essential associated services such as refueling, extensive overhauls, and inactivation procedures.

HII (Huntington Ingalls Industries, Inc.) trades in the Industrials sector, specifically Aerospace & Defense, with a market capitalization of approximately $12.88B, a trailing P/E of 19.53, a beta of 0.24 versus the broader market, a 52-week range of 262.66-460, average daily share volume of 522K, a public-listing history dating back to 2011, approximately 45K full-time employees. These structural characteristics shape how HII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.24 indicates HII has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HII pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on HII?

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.

HII snapshot

As of August 14, 2026, spot at $328.06, ATM IV 28.40%, IV rank 13.92%, expected move 8.14%. The collar on HII 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 35-day expiry.

Why this collar structure on HII specifically: IV regime affects collar pricing on both sides; compressed HII IV at 28.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 8.14% (roughly $26.71 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HII expiries trade a higher absolute premium for lower per-day decay. Position sizing on HII should anchor to the underlying notional of $328.06 per share and to the trader's directional view on HII stock.

HII collar setup

The HII 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 HII at $328.06 on that close, the first option leg uses a $340.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HII chain at a 35-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 HII shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$328.06	long
Sell 1	Call	$340.00	$6.15
Buy 1	Put	$310.00	$5.25

HII collar risk and reward

Net Premium / Debit: -$32,716.00
Max Profit (per contract): $1,284.00
Max Loss (per contract): -$1,716.00
Breakeven(s): $327.16
Risk / Reward Ratio: 0.748

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.

HII collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HII. 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%	-$1,716.00
$72.54	-77.9%	-$1,716.00
$145.08	-55.8%	-$1,716.00
$217.61	-33.7%	-$1,716.00
$290.15	-11.6%	-$1,716.00
$362.68	+10.6%	+$1,284.00
$435.22	+32.7%	+$1,284.00
$507.75	+54.8%	+$1,284.00
$580.29	+76.9%	+$1,284.00
$652.82	+99.0%	+$1,284.00

When traders use collar on HII

Collars on HII hedge an existing long HII 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.

HII thesis for this collar

The market-implied 1-standard-deviation range for HII extends from approximately $301.35 on the downside to $354.77 on the upside. A HII collar hedges an existing long HII 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 HII IV rank near 13.92% 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 HII at 28.40%. As a Industrials name, HII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HII-specific events.

HII 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. HII positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HII alongside the broader basket even when HII-specific fundamentals are unchanged. Always rebuild the position from current HII chain quotes before placing a trade.

Frequently asked questions

What is a collar on HII?: A collar on HII is the collar strategy applied to HII (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 HII stock at $328.06 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HII chain strike and the premiums come straight from that session's bid/ask midpoint.
How are HII 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 HII collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 28.40%), the computed maximum profit is $1,284.00 per contract and the computed maximum loss is -$1,716.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HII collar?: The breakeven for the HII collar priced on this page is roughly $327.16 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 HII market-implied 1-standard-deviation expected move in the same options snapshot is approximately 8.14%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HII?: Collars on HII hedge an existing long HII 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 HII implied volatility affect this collar?: HII ATM IV is at 28.40% with IV rank near 13.92%, 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.