DIG Collar Strategy
DIG (ProShares - Ultra Energy), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra Energy fund is engineered to offer daily returns that are double the daily performance of the S&P Energy Select Sector Index. This objective is pursued prior to the deduction of any fees or expenses.
DIG (ProShares - Ultra Energy) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $67.0M, a beta of -0.03 versus the broader market, a 52-week range of 32.7-71.52, average daily share volume of 42K, 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 -0.03 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.
DIG snapshot
As of August 14, 2026, spot at $65.77, ATM IV 48.60%, IV rank 42.83%, expected move 13.93%. The collar on DIG below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on DIG specifically: IV regime affects collar pricing on both sides; mid-range DIG IV at 48.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.93% (roughly $9.16 on the underlying). The 35-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 $65.77 per share and to the trader's directional view on DIG etf.
DIG collar setup
The DIG collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With DIG at $65.77 on that close, the first option leg uses a $70.00 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 35-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 | $65.77 | long |
| Sell 1 | Call | $70.00 | $2.28 |
| Buy 1 | Put | $60.00 | $2.20 |
DIG collar risk and reward
- Net Premium / Debit
- -$6,569.50
- Max Profit (per contract)
- $430.50
- Max Loss (per contract)
- -$569.50
- Breakeven(s)
- $65.70
- Risk / Reward Ratio
- 0.756
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% | -$569.50 |
| $14.55 | -77.9% | -$569.50 |
| $29.09 | -55.8% | -$569.50 |
| $43.63 | -33.7% | -$569.50 |
| $58.17 | -11.5% | -$569.50 |
| $72.72 | +10.6% | +$430.50 |
| $87.26 | +32.7% | +$430.50 |
| $101.80 | +54.8% | +$430.50 |
| $116.34 | +76.9% | +$430.50 |
| $130.88 | +99.0% | +$430.50 |
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 $56.61 on the downside to $74.93 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 42.83% 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 at $65.77 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed DIG chain strike and the premiums come straight from that session's 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 August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 48.60%), the computed maximum profit is $430.50 per contract and the computed maximum loss is -$569.50 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 $65.70 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DIG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.93%; 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 48.60% with IV rank near 42.83%, 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.