BIB Collar Strategy
BIB (ProShares - Ultra Nasdaq Biotechnology), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
ProShares Ultra Nasdaq Biotechnology seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Nasdaq Biotechnology Index.
BIB (ProShares - Ultra Nasdaq Biotechnology) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $80.0M, a beta of 1.16 versus the broader market, a 52-week range of 39.75-90.91, average daily share volume of 11K, 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 1.16 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 May 15, 2026, spot at $80.60, ATM IV 47.10%, IV rank 30.59%, expected move 13.50%. 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 34-day expiry.
Why this collar structure on BIB specifically: IV regime affects collar pricing on both sides; mid-range BIB IV at 47.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.50% (roughly $10.88 on the underlying). The 34-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 $80.60 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 $80.60, the first option leg uses a $85.00 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 34-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 | $80.60 | long |
| Sell 1 | Call | $85.00 | $3.30 |
| Buy 1 | Put | $77.00 | $2.88 |
BIB collar risk and reward
- Net Premium / Debit
- -$8,017.50
- Max Profit (per contract)
- $482.50
- Max Loss (per contract)
- -$317.50
- Breakeven(s)
- $80.18
- Risk / Reward Ratio
- 1.520
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.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$317.50 |
| $17.83 | -77.9% | -$317.50 |
| $35.65 | -55.8% | -$317.50 |
| $53.47 | -33.7% | -$317.50 |
| $71.29 | -11.6% | -$317.50 |
| $89.11 | +10.6% | +$482.50 |
| $106.93 | +32.7% | +$482.50 |
| $124.75 | +54.8% | +$482.50 |
| $142.57 | +76.9% | +$482.50 |
| $160.39 | +99.0% | +$482.50 |
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 $69.72 on the downside to $91.48 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 30.59% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on BIB should anchor more to the directional view and the expected-move geometry. 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 $80.60, 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 47.10%), the computed maximum profit is $482.50 per contract and the computed maximum loss is -$317.50 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 $80.18 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 13.50%; 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 47.10% with IV rank near 30.59%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.