HUN Collar Strategy
HUN (Huntsman Corporation), in the Basic Materials sector, (Chemicals industry), listed on NYSE.
Huntsman Corporation operates as a global producer and marketer of specialized organic chemical compounds. Its operations are structured across four distinct business divisions: Polyurethanes, Performance Products, Advanced Materials, and Textile Effects. The Polyurethanes division supplies a range of polyurethane-based chemicals, such as methyl diphenyl diisocyanate (MDI), polyols, thermoplastic polyurethane (TPU), propylene oxide, and methyl tertiary-butyl ether. Within Performance Products, the company produces a variety of amines and maleic anhydrides, alongside other key chemicals like ethylene oxide, propylene oxide, glycols, ethylene dichloride, caustic soda, ammonia, hydrogen, methylamines, and acrylonitrile. The Advanced Materials segment focuses on advanced polymer solutions. This includes formulations based on epoxy, acrylic, polyurethane, and acrylonitrile-butadiene, as well as high-performance thermoset resins, curing and toughening agents, carbon nanotube additives, and fundamental liquid and solid resins.
HUN (Huntsman Corporation) trades in the Basic Materials sector, specifically Chemicals, with a market capitalization of approximately $2.00B, a beta of 0.66 versus the broader market, a 52-week range of 7.3-16.09, average daily share volume of 6.1M, a public-listing history dating back to 2005, approximately 6K full-time employees. These structural characteristics shape how HUN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.66 indicates HUN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HUN pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on HUN?
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 HUN snapshot
As of June 30, 2026, spot at $10.59, ATM IV 51.20%, IV rank 13.60%, expected move 14.68%. The collar on HUN 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 52-day expiry.
Why this collar structure on HUN specifically: IV regime affects collar pricing on both sides; compressed HUN IV at 51.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.68% (roughly $1.55 on the underlying). The 52-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated HUN expiries trade a higher absolute premium for lower per-day decay. Position sizing on HUN should anchor to the underlying notional of $10.59 per share and to the trader's directional view on HUN stock.
HUN collar setup
The HUN 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 HUN near $10.59, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HUN chain at a 52-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 HUN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.59 | long |
| Sell 1 | Call | $11.00 | $0.73 |
| Buy 1 | Put | $10.00 | $0.58 |
HUN collar risk and reward
- Net Premium / Debit
- -$1,044.00
- Max Profit (per contract)
- $56.00
- Max Loss (per contract)
- -$44.00
- Breakeven(s)
- $10.44
- Risk / Reward Ratio
- 1.273
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.
HUN collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on HUN. 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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | -$44.00 |
| $2.35 | -77.8% | -$44.00 |
| $4.69 | -55.7% | -$44.00 |
| $7.03 | -33.6% | -$44.00 |
| $9.37 | -11.5% | -$44.00 |
| $11.71 | +10.6% | +$56.00 |
| $14.05 | +32.7% | +$56.00 |
| $16.39 | +54.8% | +$56.00 |
| $18.73 | +76.9% | +$56.00 |
| $21.07 | +99.0% | +$56.00 |
When traders use collar on HUN
Collars on HUN hedge an existing long HUN 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.
HUN thesis for this collar
The market-implied 1-standard-deviation range for HUN extends from approximately $9.04 on the downside to $12.14 on the upside. A HUN collar hedges an existing long HUN 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 HUN IV rank near 13.60% 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 HUN at 51.20%. As a Basic Materials name, HUN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HUN-specific events.
HUN 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. HUN positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HUN alongside the broader basket even when HUN-specific fundamentals are unchanged. Always rebuild the position from current HUN chain quotes before placing a trade.
Frequently asked questions
- What is a collar on HUN?
- A collar on HUN is the collar strategy applied to HUN (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 HUN stock trading near $10.59, the strikes shown on this page are snapped to the nearest listed HUN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HUN 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 HUN collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.20%), the computed maximum profit is $56.00 per contract and the computed maximum loss is -$44.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HUN collar?
- The breakeven for the HUN collar priced on this page is roughly $10.44 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 HUN market-implied 1-standard-deviation expected move is approximately 14.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on HUN?
- Collars on HUN hedge an existing long HUN 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 HUN implied volatility affect this collar?
- HUN ATM IV is at 51.20% with IV rank near 13.60%, 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.