HOPE Collar Strategy
HOPE (Hope Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.
Hope Bancorp, Inc. operates as the bank holding company for Bank of Hope that provides banking services for small and medium-sized businesses, and individuals in the United States. The company accepts personal and business checking, money market, savings, time deposit, and individual retirement accounts. Its loan products include commercial loans to businesses for various purposes, such as working capital, purchasing inventory, debt refinancing, business acquisitions, and other business related financing needs; real estate loans; small business administration loans; and consumer loans, such as single-family mortgage, home equity, auto, credit card, and personal loans. The company also offers trade finance services, including the issuance and negotiation of letters of credit, as well as handles documentary collections; warehouse lines of credit to mortgage loan originators; and commercial equipment lease financing. In addition, it provides cash management services, such as remote deposit capture, lock box, and ACH origination services; investment and wealth management services; mobile banking services; debit card services; foreign exchanges services, safe deposit boxes, and other customary bank services; internet banking services; and automated teller machine services. As of December 31, 2021, the company operated 47 full-service branches in California, Washington, Texas, Illinois, New York, New Jersey, Virginia, and Alabama; SBA loan production offices in Atlanta, Houston, Dallas, Denver, Portland, Seattle, Fremont, and Southern California; and a representative office in Seoul, Korea.
HOPE (Hope Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $1.53B, a trailing P/E of 23.01, a beta of 0.83 versus the broader market, a 52-week range of 9.44-13.02, average daily share volume of 935K, a public-listing history dating back to 1998, approximately 1K full-time employees. These structural characteristics shape how HOPE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places HOPE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HOPE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HOPE?
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 HOPE snapshot
As of May 15, 2026, spot at $11.86, ATM IV 8.80%, IV rank 0.09%, expected move 2.52%. The collar on HOPE 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 HOPE specifically: IV regime affects collar pricing on both sides; compressed HOPE IV at 8.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 2.52% (roughly $0.30 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 HOPE expiries trade a higher absolute premium for lower per-day decay. Position sizing on HOPE should anchor to the underlying notional of $11.86 per share and to the trader's directional view on HOPE stock.
HOPE collar setup
The HOPE 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 HOPE near $11.86, the first option leg uses a $12.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HOPE 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 HOPE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $11.86 | long |
| Sell 1 | Call | $12.45 | N/A |
| Buy 1 | Put | $11.27 | N/A |
HOPE 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.
HOPE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HOPE. 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 HOPE
Collars on HOPE hedge an existing long HOPE 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.
HOPE thesis for this collar
The market-implied 1-standard-deviation range for HOPE extends from approximately $11.56 on the downside to $12.16 on the upside. A HOPE collar hedges an existing long HOPE 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 HOPE IV rank near 0.09% 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 HOPE at 8.80%. As a Financial Services name, HOPE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HOPE-specific events.
HOPE 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. HOPE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HOPE alongside the broader basket even when HOPE-specific fundamentals are unchanged. Always rebuild the position from current HOPE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HOPE?
- A collar on HOPE is the collar strategy applied to HOPE (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 HOPE stock trading near $11.86, the strikes shown on this page are snapped to the nearest listed HOPE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HOPE 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 HOPE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 8.80%), 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 HOPE collar?
- The breakeven for the HOPE 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 HOPE market-implied 1-standard-deviation expected move is approximately 2.52%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HOPE?
- Collars on HOPE hedge an existing long HOPE 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 HOPE implied volatility affect this collar?
- HOPE ATM IV is at 8.80% with IV rank near 0.09%, 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.