HPP Collar Strategy
HPP (Hudson Pacific Properties, Inc.), in the Real Estate sector, (REIT - Office industry), listed on NYSE.
Hudson Pacific Properties, Inc. (HPP) functions as a Real Estate Investment Trust, overseeing a significant collection of office and studio properties. Its extensive holdings encompass nearly 19 million square feet, a figure that also accounts for land designated for future development. The company strategically focuses its investments on key West Coast centers recognized for their innovation, media, and technology industries. Its impressive tenant roster comprises prominent Fortune 500 companies and swiftly expanding enterprises, including well-known names like Netflix, Google, Square, Uber, and NFL Enterprises. Hudson Pacific's stock is publicly traded on the New York Stock Exchange under the ticker HPP, and it is also recognized as a component of the S&P MidCap 400 Index.
HPP (Hudson Pacific Properties, Inc.) trades in the Real Estate sector, specifically REIT - Office, with a market capitalization of approximately $833.7M, a beta of 1.97 versus the broader market, a 52-week range of 5.26-21.7, average daily share volume of 1.2M, a public-listing history dating back to 2010, approximately 740 full-time employees. These structural characteristics shape how HPP stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.97 indicates HPP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. HPP pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HPP?
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 HPP snapshot
As of June 30, 2026, spot at $15.42, ATM IV 104.20%, IV rank 28.39%, expected move 29.87%. The collar on HPP 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 HPP specifically: IV regime affects collar pricing on both sides; compressed HPP IV at 104.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.87% (roughly $4.61 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 HPP expiries trade a higher absolute premium for lower per-day decay. Position sizing on HPP should anchor to the underlying notional of $15.42 per share and to the trader's directional view on HPP stock.
HPP collar setup
The HPP 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 HPP near $15.42, the first option leg uses a $16.19 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HPP 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 HPP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $15.42 | long |
| Sell 1 | Call | $16.19 | N/A |
| Buy 1 | Put | $14.65 | N/A |
HPP 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.
HPP collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HPP. 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 HPP
Collars on HPP hedge an existing long HPP 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.
HPP thesis for this collar
The market-implied 1-standard-deviation range for HPP extends from approximately $10.81 on the downside to $20.03 on the upside. A HPP collar hedges an existing long HPP 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 HPP IV rank near 28.39% 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 HPP at 104.20%. As a Real Estate name, HPP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HPP-specific events.
HPP 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. HPP positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HPP alongside the broader basket even when HPP-specific fundamentals are unchanged. Always rebuild the position from current HPP chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HPP?
- A collar on HPP is the collar strategy applied to HPP (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 HPP stock trading near $15.42, the strikes shown on this page are snapped to the nearest listed HPP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HPP 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 HPP collar priced from the end-of-day chain at a 30-day expiry (ATM IV 104.20%), 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 HPP collar?
- The breakeven for the HPP 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 HPP market-implied 1-standard-deviation expected move is approximately 29.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HPP?
- Collars on HPP hedge an existing long HPP 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 HPP implied volatility affect this collar?
- HPP ATM IV is at 104.20% with IV rank near 28.39%, 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.