CTEX Collar Strategy
CTEX (ProShares - S&P Kensho Cleantech ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund invests in securities that ProShare Advisors believes, in combination, should track the performance of the index. The index selects companies focused on building the technologies or products that enable the generation of clean energy, such as solar, wind, geothermal, hydrogen, and hydroelectric. The fund will invest in all of the component securities of the index in approximately the same proportion as the index. It is non-diversified.
CTEX (ProShares - S&P Kensho Cleantech ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.8M, a beta of 2.02 versus the broader market, a 52-week range of 18.67-44.92, average daily share volume of 2K, a public-listing history dating back to 2021. These structural characteristics shape how CTEX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.02 indicates CTEX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. CTEX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on CTEX?
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 CTEX snapshot
As of May 15, 2026, spot at $45.29, ATM IV 38.00%, IV rank 4.21%, expected move 10.89%. The collar on CTEX 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 CTEX specifically: IV regime affects collar pricing on both sides; compressed CTEX IV at 38.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.89% (roughly $4.93 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 CTEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTEX should anchor to the underlying notional of $45.29 per share and to the trader's directional view on CTEX etf.
CTEX collar setup
The CTEX 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 CTEX near $45.29, the first option leg uses a $46.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTEX 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 CTEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $45.29 | long |
| Sell 1 | Call | $46.00 | $1.68 |
| Buy 1 | Put | $43.00 | $1.25 |
CTEX collar risk and reward
- Net Premium / Debit
- -$4,486.50
- Max Profit (per contract)
- $113.50
- Max Loss (per contract)
- -$186.50
- Breakeven(s)
- $44.87
- Risk / Reward Ratio
- 0.609
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.
CTEX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on CTEX. 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% | -$186.50 |
| $10.02 | -77.9% | -$186.50 |
| $20.04 | -55.8% | -$186.50 |
| $30.05 | -33.7% | -$186.50 |
| $40.06 | -11.5% | -$186.50 |
| $50.07 | +10.6% | +$113.50 |
| $60.09 | +32.7% | +$113.50 |
| $70.10 | +54.8% | +$113.50 |
| $80.11 | +76.9% | +$113.50 |
| $90.12 | +99.0% | +$113.50 |
When traders use collar on CTEX
Collars on CTEX hedge an existing long CTEX 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.
CTEX thesis for this collar
The market-implied 1-standard-deviation range for CTEX extends from approximately $40.36 on the downside to $50.22 on the upside. A CTEX collar hedges an existing long CTEX 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 CTEX IV rank near 4.21% 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 CTEX at 38.00%. As a Financial Services name, CTEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTEX-specific events.
CTEX 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. CTEX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTEX alongside the broader basket even when CTEX-specific fundamentals are unchanged. Always rebuild the position from current CTEX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on CTEX?
- A collar on CTEX is the collar strategy applied to CTEX (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 CTEX etf trading near $45.29, the strikes shown on this page are snapped to the nearest listed CTEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTEX 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 CTEX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 38.00%), the computed maximum profit is $113.50 per contract and the computed maximum loss is -$186.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CTEX collar?
- The breakeven for the CTEX collar priced on this page is roughly $44.87 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 CTEX market-implied 1-standard-deviation expected move is approximately 10.89%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on CTEX?
- Collars on CTEX hedge an existing long CTEX 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 CTEX implied volatility affect this collar?
- CTEX ATM IV is at 38.00% with IV rank near 4.21%, 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.