DIG Collar Strategy
DIG (ProShares - Ultra Energy), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra Energy seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the S&P Energy Select SectorSM Index.
DIG (ProShares - Ultra Energy) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $86.0M, a beta of 0.17 versus the broader market, a 52-week range of 30.21-71.52, average daily share volume of 88K, a public-listing history dating back to 2007. These structural characteristics shape how DIG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.17 indicates DIG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. DIG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on DIG?
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 DIG snapshot
As of May 15, 2026, spot at $61.48, ATM IV 53.30%, IV rank 58.70%, expected move 15.28%. The collar on DIG 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 DIG specifically: IV regime affects collar pricing on both sides; mid-range DIG IV at 53.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.28% (roughly $9.39 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 DIG expiries trade a higher absolute premium for lower per-day decay. Position sizing on DIG should anchor to the underlying notional of $61.48 per share and to the trader's directional view on DIG etf.
DIG collar setup
The DIG 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 DIG near $61.48, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DIG 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 DIG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $61.48 | long |
| Sell 1 | Call | $65.00 | $1.93 |
| Buy 1 | Put | $60.00 | $3.40 |
DIG collar risk and reward
- Net Premium / Debit
- -$6,295.50
- Max Profit (per contract)
- $204.50
- Max Loss (per contract)
- -$295.50
- Breakeven(s)
- $62.96
- Risk / Reward Ratio
- 0.692
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.
DIG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on DIG. 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% | -$295.50 |
| $13.60 | -77.9% | -$295.50 |
| $27.19 | -55.8% | -$295.50 |
| $40.79 | -33.7% | -$295.50 |
| $54.38 | -11.5% | -$295.50 |
| $67.97 | +10.6% | +$204.50 |
| $81.56 | +32.7% | +$204.50 |
| $95.16 | +54.8% | +$204.50 |
| $108.75 | +76.9% | +$204.50 |
| $122.34 | +99.0% | +$204.50 |
When traders use collar on DIG
Collars on DIG hedge an existing long DIG 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.
DIG thesis for this collar
The market-implied 1-standard-deviation range for DIG extends from approximately $52.09 on the downside to $70.87 on the upside. A DIG collar hedges an existing long DIG 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 DIG IV rank near 58.70% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on DIG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, DIG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DIG-specific events.
DIG 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. DIG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DIG alongside the broader basket even when DIG-specific fundamentals are unchanged. Always rebuild the position from current DIG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on DIG?
- A collar on DIG is the collar strategy applied to DIG (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 DIG etf trading near $61.48, the strikes shown on this page are snapped to the nearest listed DIG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are DIG 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 DIG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.30%), the computed maximum profit is $204.50 per contract and the computed maximum loss is -$295.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a DIG collar?
- The breakeven for the DIG collar priced on this page is roughly $62.96 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 DIG market-implied 1-standard-deviation expected move is approximately 15.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on DIG?
- Collars on DIG hedge an existing long DIG 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 DIG implied volatility affect this collar?
- DIG ATM IV is at 53.30% with IV rank near 58.70%, 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.