HL Collar Strategy
HL (Hecla Mining Company), in the Basic Materials sector, (Gold industry), listed on NYSE.
Hecla Mining Company, together with its subsidiaries, discovers, acquires, develops, and produces precious and base metal properties in the United States and internationally. The company mines for silver, gold, lead, and zinc concentrates, as well as carbon material containing silver and gold for sale to custom smelters, metal traders, and third-party processors,; and doré containing silver and gold. It owns 100% interests in the Greens Creek mine located on Admiralty Island in southeast Alaska; the Lucky Friday mine situated in northern Idaho; the Casa Berardi mine located in the Abitibi region of northwestern Quebec, Canada; and the San Sebastian mine situated in the city of Durango, Mexico. The company also holds 100% interests in the Fire Creek mine located in Lander County, Nevada; and the Hollister and Midas mines situated in Elko County, Nevada. Hecla Mining Company was incorporated in 1891 and is headquartered in Coeur d'Alene, Idaho.
HL (Hecla Mining Company) trades in the Basic Materials sector, specifically Gold, with a market capitalization of approximately $14.12B, a trailing P/E of 51.54, a beta of 1.26 versus the broader market, a 52-week range of 4.71-34.17, average daily share volume of 17.0M, a public-listing history dating back to 1980, approximately 2K full-time employees. These structural characteristics shape how HL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places HL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 51.54 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. HL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HL?
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 HL snapshot
As of May 15, 2026, spot at $17.68, ATM IV 69.82%, IV rank 42.81%, expected move 20.02%. The collar on HL 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 28-day expiry.
Why this collar structure on HL specifically: IV regime affects collar pricing on both sides; mid-range HL IV at 69.82% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.02% (roughly $3.54 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 HL expiries trade a higher absolute premium for lower per-day decay. Position sizing on HL should anchor to the underlying notional of $17.68 per share and to the trader's directional view on HL stock.
HL collar setup
The HL 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 HL near $17.68, the first option leg uses a $18.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HL 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 HL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $17.68 | long |
| Sell 1 | Call | $18.50 | $1.08 |
| Buy 1 | Put | $17.00 | $0.98 |
HL collar risk and reward
- Net Premium / Debit
- -$1,758.00
- Max Profit (per contract)
- $92.00
- Max Loss (per contract)
- -$58.00
- Breakeven(s)
- $17.58
- Risk / Reward Ratio
- 1.586
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.
HL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HL. 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 | -99.9% | -$58.00 |
| $3.92 | -77.8% | -$58.00 |
| $7.83 | -55.7% | -$58.00 |
| $11.73 | -33.6% | -$58.00 |
| $15.64 | -11.5% | -$58.00 |
| $19.55 | +10.6% | +$92.00 |
| $23.46 | +32.7% | +$92.00 |
| $27.37 | +54.8% | +$92.00 |
| $31.27 | +76.9% | +$92.00 |
| $35.18 | +99.0% | +$92.00 |
When traders use collar on HL
Collars on HL hedge an existing long HL 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.
HL thesis for this collar
The market-implied 1-standard-deviation range for HL extends from approximately $14.14 on the downside to $21.22 on the upside. A HL collar hedges an existing long HL 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 HL IV rank near 42.81% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on HL should anchor more to the directional view and the expected-move geometry. As a Basic Materials name, HL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HL-specific events.
HL 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. HL positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HL alongside the broader basket even when HL-specific fundamentals are unchanged. Always rebuild the position from current HL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HL?
- A collar on HL is the collar strategy applied to HL (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 HL stock trading near $17.68, the strikes shown on this page are snapped to the nearest listed HL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HL 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 HL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 69.82%), the computed maximum profit is $92.00 per contract and the computed maximum loss is -$58.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HL collar?
- The breakeven for the HL collar priced on this page is roughly $17.58 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 HL market-implied 1-standard-deviation expected move is approximately 20.02%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HL?
- Collars on HL hedge an existing long HL 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 HL implied volatility affect this collar?
- HL ATM IV is at 69.82% with IV rank near 42.81%, 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.