How are HLI 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 HLI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $550.00 per contract and the computed maximum loss is -$450.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a HLI collar?

The breakeven for the HLI collar priced on this page is roughly $134.50 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 HLI market-implied 1-standard-deviation expected move is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current HLI implied volatility affect this collar?

HLI ATM IV is at 33.30% with IV rank near 3.27%, 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.

HLI Collar Strategy

HLI (Houlihan Lokey, Inc.), in the Financial Services sector, (Financial - Capital Markets industry), listed on NYSE.

Houlihan Lokey, Inc. is a prominent global investment banking firm offering a comprehensive suite of financial advisory services. These include expertise in mergers and acquisitions (M&A), capital markets, financial restructuring, and valuation. The company's operations are divided into three core segments: The Corporate Finance division provides broad financial guidance. It assists both public and private entities with strategic buy-side and sell-side transactions and a variety of capital-raising activities, such as leveraged loans, private mezzanine debt, high-yield debt, initial public offerings (IPOs), follow-on offerings, convertibles, equity private placements, and private equity investments. This segment also advises financial sponsors on diverse deal structures and liability management initiatives. The Financial Restructuring segment guides debtors, creditors, and other involved parties through complex recapitalization and deleveraging processes.

HLI (Houlihan Lokey, Inc.) trades in the Financial Services sector, specifically Financial - Capital Markets, with a market capitalization of approximately $9.57B, a trailing P/E of 21.59, a beta of 0.95 versus the broader market, a 52-week range of 133.83-211.777, average daily share volume of 677K, a public-listing history dating back to 2015, approximately 3K full-time employees. These structural characteristics shape how HLI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.95 places HLI roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HLI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on HLI?

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 HLI snapshot

As of June 30, 2026, spot at $134.40, ATM IV 33.30%, IV rank 3.27%, expected move 9.55%. The collar on HLI 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 HLI specifically: IV regime affects collar pricing on both sides; compressed HLI IV at 33.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.55% (roughly $12.83 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 HLI expiries trade a higher absolute premium for lower per-day decay. Position sizing on HLI should anchor to the underlying notional of $134.40 per share and to the trader's directional view on HLI stock.

HLI collar setup

The HLI 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 HLI near $134.40, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HLI 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 HLI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$134.40	long
Sell 1	Call	$140.00	$1.93
Buy 1	Put	$130.00	$2.03

HLI collar risk and reward

Net Premium / Debit: -$13,450.00
Max Profit (per contract): $550.00
Max Loss (per contract): -$450.00
Breakeven(s): $134.50
Risk / Reward Ratio: 1.222

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.

HLI collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on HLI. 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%	-$450.00
$29.73	-77.9%	-$450.00
$59.44	-55.8%	-$450.00
$89.16	-33.7%	-$450.00
$118.87	-11.6%	-$450.00
$148.59	+10.6%	+$550.00
$178.30	+32.7%	+$550.00
$208.02	+54.8%	+$550.00
$237.73	+76.9%	+$550.00
$267.45	+99.0%	+$550.00

When traders use collar on HLI

Collars on HLI hedge an existing long HLI 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.

HLI thesis for this collar

The market-implied 1-standard-deviation range for HLI extends from approximately $121.57 on the downside to $147.23 on the upside. A HLI collar hedges an existing long HLI 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 HLI IV rank near 3.27% 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 HLI at 33.30%. As a Financial Services name, HLI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HLI-specific events.

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

Frequently asked questions

What is a collar on HLI?: A collar on HLI is the collar strategy applied to HLI (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 HLI stock trading near $134.40, the strikes shown on this page are snapped to the nearest listed HLI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HLI 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 HLI collar priced from the end-of-day chain at a 30-day expiry (ATM IV 33.30%), the computed maximum profit is $550.00 per contract and the computed maximum loss is -$450.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a HLI collar?: The breakeven for the HLI collar priced on this page is roughly $134.50 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 HLI market-implied 1-standard-deviation expected move is approximately 9.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on HLI?: Collars on HLI hedge an existing long HLI 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 HLI implied volatility affect this collar?: HLI ATM IV is at 33.30% with IV rank near 3.27%, 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.