EETH Collar Strategy
EETH (ProShares - Ether ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
EETH seeks to mirror the performance of ether (ETH) through standardized futures contracts traded on the Chicago Mercantile Exchange (CME). The fund invests primarily in USD cash-settled, front-month CME ether futures contracts while also considering back-month contracts. To maintain its exposure to ether, the fund replaces expiring futures contracts with new ones having later expiration dates. Additionally, the fund may utilize proceeds from reverse repurchase agreements as leverage to achieve the desired level of exposure. Investments are made via a wholly-owned Cayman Island subsidiary, capped at 25% at each quarter end. Note that investing in ETH futures carries high risk, including the potential for total loss.
EETH (ProShares - Ether ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $69.4M, a beta of 3.11 versus the broader market, a 52-week range of 22.435-84.43, average daily share volume of 71K, a public-listing history dating back to 2023. These structural characteristics shape how EETH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.11 indicates EETH has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. EETH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EETH?
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 EETH snapshot
As of May 15, 2026, spot at $27.33, ATM IV 50.80%, IV rank 7.36%, expected move 14.56%. The collar on EETH 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 EETH specifically: IV regime affects collar pricing on both sides; compressed EETH IV at 50.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.56% (roughly $3.98 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 EETH expiries trade a higher absolute premium for lower per-day decay. Position sizing on EETH should anchor to the underlying notional of $27.33 per share and to the trader's directional view on EETH etf.
EETH collar setup
The EETH 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 EETH near $27.33, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EETH 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 EETH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.33 | long |
| Sell 1 | Call | $29.00 | $0.98 |
| Buy 1 | Put | $26.00 | $0.93 |
EETH collar risk and reward
- Net Premium / Debit
- -$2,728.00
- Max Profit (per contract)
- $172.00
- Max Loss (per contract)
- -$128.00
- Breakeven(s)
- $27.28
- Risk / Reward Ratio
- 1.344
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.
EETH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EETH. 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% | -$128.00 |
| $6.05 | -77.9% | -$128.00 |
| $12.09 | -55.8% | -$128.00 |
| $18.14 | -33.6% | -$128.00 |
| $24.18 | -11.5% | -$128.00 |
| $30.22 | +10.6% | +$172.00 |
| $36.26 | +32.7% | +$172.00 |
| $42.30 | +54.8% | +$172.00 |
| $48.34 | +76.9% | +$172.00 |
| $54.39 | +99.0% | +$172.00 |
When traders use collar on EETH
Collars on EETH hedge an existing long EETH 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.
EETH thesis for this collar
The market-implied 1-standard-deviation range for EETH extends from approximately $23.35 on the downside to $31.31 on the upside. A EETH collar hedges an existing long EETH 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 EETH IV rank near 7.36% 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 EETH at 50.80%. As a Financial Services name, EETH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EETH-specific events.
EETH 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. EETH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EETH alongside the broader basket even when EETH-specific fundamentals are unchanged. Always rebuild the position from current EETH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EETH?
- A collar on EETH is the collar strategy applied to EETH (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 EETH etf trading near $27.33, the strikes shown on this page are snapped to the nearest listed EETH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EETH 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 EETH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 50.80%), the computed maximum profit is $172.00 per contract and the computed maximum loss is -$128.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EETH collar?
- The breakeven for the EETH collar priced on this page is roughly $27.28 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 EETH market-implied 1-standard-deviation expected move is approximately 14.56%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EETH?
- Collars on EETH hedge an existing long EETH 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 EETH implied volatility affect this collar?
- EETH ATM IV is at 50.80% with IV rank near 7.36%, 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.