HSIC Collar Strategy
HSIC (Henry Schein, Inc.), in the Healthcare sector, (Medical - Distribution industry), listed on NASDAQ.
Henry Schein, Inc. (HSIC) is a global leader in delivering a comprehensive suite of healthcare products and services. The company caters to a diverse clientele across the globe, including dental professionals and laboratories, physician practices, governmental entities, and various institutional and alternative healthcare facilities. Its operations are organized into two principal segments: Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution division supplies an extensive array of dental goods, encompassing consumables (such as infection control items, impression materials, composites, anesthetics, and artificial teeth), specialized tools and equipment (like handpieces, dental chairs, delivery units, X-ray machinery, and advanced digital restoration systems), and personal protective equipment. This segment also provides essential equipment repair services. Furthermore, it distributes a broad range of medical supplies, including pharmaceuticals (both branded and generic), vaccines, surgical instruments, diagnostic kits, infection prevention solutions, imaging products, equipment, and nutritional supplements.
HSIC (Henry Schein, Inc.) trades in the Healthcare sector, specifically Medical - Distribution, with a market capitalization of approximately $9.68B, a trailing P/E of 24.72, a beta of 0.82 versus the broader market, a 52-week range of 61.95-89.29, average daily share volume of 1.4M, a public-listing history dating back to 1995, approximately 25K full-time employees. These structural characteristics shape how HSIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places HSIC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a collar on HSIC?
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 HSIC snapshot
As of June 30, 2026, spot at $83.78, ATM IV 284.00%, IV rank 86.64%, expected move 81.42%. The collar on HSIC 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 HSIC specifically: IV regime affects collar pricing on both sides; elevated HSIC IV at 284.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 81.42% (roughly $68.21 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 HSIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on HSIC should anchor to the underlying notional of $83.78 per share and to the trader's directional view on HSIC stock.
HSIC collar setup
The HSIC 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 HSIC near $83.78, the first option leg uses a $87.97 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HSIC 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 HSIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $83.78 | long |
| Sell 1 | Call | $87.97 | N/A |
| Buy 1 | Put | $79.59 | N/A |
HSIC 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.
HSIC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HSIC. 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 HSIC
Collars on HSIC hedge an existing long HSIC 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.
HSIC thesis for this collar
The market-implied 1-standard-deviation range for HSIC extends from approximately $15.57 on the downside to $151.99 on the upside. A HSIC collar hedges an existing long HSIC 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 HSIC IV rank near 86.64% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on HSIC at 284.00%. As a Healthcare name, HSIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HSIC-specific events.
HSIC 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. HSIC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HSIC alongside the broader basket even when HSIC-specific fundamentals are unchanged. Always rebuild the position from current HSIC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HSIC?
- A collar on HSIC is the collar strategy applied to HSIC (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 HSIC stock trading near $83.78, the strikes shown on this page are snapped to the nearest listed HSIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HSIC 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 HSIC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 284.00%), 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 HSIC collar?
- The breakeven for the HSIC 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 HSIC market-implied 1-standard-deviation expected move is approximately 81.42%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HSIC?
- Collars on HSIC hedge an existing long HSIC 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 HSIC implied volatility affect this collar?
- HSIC ATM IV is at 284.00% with IV rank near 86.64%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.