HTH Collar Strategy
HTH (Hilltop Holdings Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
Hilltop Holdings Inc., a Dallas, Texas-based entity established in 1998, delivers a comprehensive suite of financial products and services, catering to both corporate and individual clients. Its operations are structured into three primary divisions: Banking, Broker-Dealer activities, and Mortgage Origination. The Banking division encompasses a range of deposit products, including checking (both standard and interest-bearing), savings, money market accounts, and certificates of deposit. It extends various credit facilities such as lines and letters of credit, home improvement and equity financing, loans for securities acquisition, equipment leasing and loans, agricultural and commercial real estate funding, alongside commercial, industrial, term, and construction loans. Additionally, this segment offers treasury, wealth, and asset management services, along with essential banking conveniences like check cards, safe deposit boxes, online banking, bill payment, trust services, and overdraft protection. Further specialized offerings include estate planning, investment portfolio administration, employee benefit accounts, individual retirement accounts, and ATM access.
HTH (Hilltop Holdings Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $2.34B, a trailing P/E of 14.64, a beta of 0.88 versus the broader market, a 52-week range of 29.2-40.41, average daily share volume of 322K, a public-listing history dating back to 2004, approximately 4K full-time employees. These structural characteristics shape how HTH stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.88 places HTH roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HTH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HTH?
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 HTH snapshot
As of June 30, 2026, spot at $38.88, ATM IV 72.10%, IV rank 15.75%, expected move 20.67%. The collar on HTH 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 HTH specifically: IV regime affects collar pricing on both sides; compressed HTH IV at 72.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.67% (roughly $8.04 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 HTH expiries trade a higher absolute premium for lower per-day decay. Position sizing on HTH should anchor to the underlying notional of $38.88 per share and to the trader's directional view on HTH stock.
HTH collar setup
The HTH 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 HTH near $38.88, the first option leg uses a $40.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HTH 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 HTH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $38.88 | long |
| Sell 1 | Call | $40.82 | N/A |
| Buy 1 | Put | $36.94 | N/A |
HTH 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.
HTH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HTH. 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 HTH
Collars on HTH hedge an existing long HTH 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.
HTH thesis for this collar
The market-implied 1-standard-deviation range for HTH extends from approximately $30.84 on the downside to $46.92 on the upside. A HTH collar hedges an existing long HTH 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 HTH IV rank near 15.75% 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 HTH at 72.10%. As a Financial Services name, HTH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HTH-specific events.
HTH 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. HTH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HTH alongside the broader basket even when HTH-specific fundamentals are unchanged. Always rebuild the position from current HTH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HTH?
- A collar on HTH is the collar strategy applied to HTH (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 HTH stock trading near $38.88, the strikes shown on this page are snapped to the nearest listed HTH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HTH 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 HTH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 72.10%), 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 HTH collar?
- The breakeven for the HTH 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 HTH market-implied 1-standard-deviation expected move is approximately 20.67%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HTH?
- Collars on HTH hedge an existing long HTH 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 HTH implied volatility affect this collar?
- HTH ATM IV is at 72.10% with IV rank near 15.75%, 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.