How are BIB 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 BIB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is $490.50 per contract and the computed maximum loss is -$509.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BIB collar?

The breakeven for the BIB collar priced on this page is roughly $100.10 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 BIB market-implied 1-standard-deviation expected move is approximately 12.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BIB implied volatility affect this collar?

BIB ATM IV is at 43.70% with IV rank near 23.45%, 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.

BIB Collar Strategy

BIB (ProShares Ultra Nasdaq Biotechnology), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.

ProShares Trust - ProShares Ultra Nasdaq Biotechnology is an exchange traded fund launched and managed by ProShare Advisors LLC. It invests in public equity markets of the United States. It invests through derivatives in stocks of companies operating across health care, pharmaceuticals, biotechnology, drugs manufacturer, diagnostic development and life sciences sectors. It uses derivatives such as swaps to create its portfolio. The fund invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track 2x the daily performance of the Nasdaq Biotechnology Index, by using full replication technique.

BIB (ProShares Ultra Nasdaq Biotechnology) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $80.6M, a beta of 1.14 versus the broader market, a 52-week range of 45.46-99.29, average daily share volume of 10K, a public-listing history dating back to 2010. These structural characteristics shape how BIB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.14 places BIB roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. BIB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on BIB?

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 BIB snapshot

As of June 30, 2026, spot at $100.97, ATM IV 43.70%, IV rank 23.45%, expected move 12.53%. The collar on BIB 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 BIB specifically: IV regime affects collar pricing on both sides; compressed BIB IV at 43.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.53% (roughly $12.65 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 BIB expiries trade a higher absolute premium for lower per-day decay. Position sizing on BIB should anchor to the underlying notional of $100.97 per share and to the trader's directional view on BIB etf.

BIB collar setup

The BIB 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 BIB near $100.97, the first option leg uses a $105.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BIB 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 BIB shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$100.97	long
Sell 1	Call	$105.00	$2.20
Buy 1	Put	$95.00	$1.33

BIB collar risk and reward

Net Premium / Debit: -$10,009.50
Max Profit (per contract): $490.50
Max Loss (per contract): -$509.50
Breakeven(s): $100.10
Risk / Reward Ratio: 0.963

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.

BIB collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on BIB. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$509.50
$22.33	-77.9%	-$509.50
$44.66	-55.8%	-$509.50
$66.98	-33.7%	-$509.50
$89.31	-11.6%	-$509.50
$111.63	+10.6%	+$490.50
$133.95	+32.7%	+$490.50
$156.28	+54.8%	+$490.50
$178.60	+76.9%	+$490.50
$200.93	+99.0%	+$490.50

When traders use collar on BIB

Collars on BIB hedge an existing long BIB etf 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.

BIB thesis for this collar

The market-implied 1-standard-deviation range for BIB extends from approximately $88.32 on the downside to $113.62 on the upside. A BIB collar hedges an existing long BIB 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 BIB IV rank near 23.45% 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 BIB at 43.70%. As a Financial Services name, BIB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BIB-specific events.

BIB 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. BIB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BIB alongside the broader basket even when BIB-specific fundamentals are unchanged. Always rebuild the position from current BIB chain quotes before placing a trade.

Frequently asked questions

What is a collar on BIB?: A collar on BIB is the collar strategy applied to BIB (etf). 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 BIB etf trading near $100.97, the strikes shown on this page are snapped to the nearest listed BIB chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are BIB 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 BIB collar priced from the end-of-day chain at a 30-day expiry (ATM IV 43.70%), the computed maximum profit is $490.50 per contract and the computed maximum loss is -$509.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BIB collar?: The breakeven for the BIB collar priced on this page is roughly $100.10 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 BIB market-implied 1-standard-deviation expected move is approximately 12.53%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on BIB?: Collars on BIB hedge an existing long BIB etf 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 BIB implied volatility affect this collar?: BIB ATM IV is at 43.70% with IV rank near 23.45%, 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.