EEV Collar Strategy
EEV (ProShares - UltraShort MSCI Emerging Markets), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares UltraShort MSCI Emerging Markets fund endeavors to generate daily investment results that mirror an amplified inverse (-2x) of the MSCI Emerging Markets Index's daily performance. These results are calculated prior to the subtraction of any fees and operating expenses.
EEV (ProShares - UltraShort MSCI Emerging Markets) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $1.8M, a beta of -1.51 versus the broader market, a 52-week range of 10.01-25.34, average daily share volume of 76K, a public-listing history dating back to 2007. These structural characteristics shape how EEV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.51 indicates EEV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EEV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EEV?
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 EEV snapshot
As of June 29, 2026, spot at $10.94, ATM IV 96.60%, IV rank 17.68%, expected move 27.69%. The collar on EEV 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 18-day expiry.
Why this collar structure on EEV specifically: IV regime affects collar pricing on both sides; compressed EEV IV at 96.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 27.69% (roughly $3.03 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated EEV expiries trade a higher absolute premium for lower per-day decay. Position sizing on EEV should anchor to the underlying notional of $10.94 per share and to the trader's directional view on EEV etf.
EEV collar setup
The EEV 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 EEV near $10.94, the first option leg uses a $11.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EEV chain at a 18-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 EEV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $10.94 | long |
| Sell 1 | Call | $11.00 | $0.96 |
| Buy 1 | Put | $10.00 | $0.54 |
EEV collar risk and reward
- Net Premium / Debit
- -$1,052.00
- Max Profit (per contract)
- $48.00
- Max Loss (per contract)
- -$52.00
- Breakeven(s)
- $10.52
- Risk / Reward Ratio
- 0.923
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.
EEV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EEV. 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 | -99.9% | -$52.00 |
| $2.43 | -77.8% | -$52.00 |
| $4.85 | -55.7% | -$52.00 |
| $7.26 | -33.6% | -$52.00 |
| $9.68 | -11.5% | -$52.00 |
| $12.10 | +10.6% | +$48.00 |
| $14.52 | +32.7% | +$48.00 |
| $16.93 | +54.8% | +$48.00 |
| $19.35 | +76.9% | +$48.00 |
| $21.77 | +99.0% | +$48.00 |
When traders use collar on EEV
Collars on EEV hedge an existing long EEV 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.
EEV thesis for this collar
The market-implied 1-standard-deviation range for EEV extends from approximately $7.91 on the downside to $13.97 on the upside. A EEV collar hedges an existing long EEV 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 EEV IV rank near 17.68% 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 EEV at 96.60%. As a Financial Services name, EEV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EEV-specific events.
EEV 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. EEV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EEV alongside the broader basket even when EEV-specific fundamentals are unchanged. Always rebuild the position from current EEV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EEV?
- A collar on EEV is the collar strategy applied to EEV (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 EEV etf trading near $10.94, the strikes shown on this page are snapped to the nearest listed EEV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EEV 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 EEV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 96.60%), the computed maximum profit is $48.00 per contract and the computed maximum loss is -$52.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EEV collar?
- The breakeven for the EEV collar priced on this page is roughly $10.52 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 EEV market-implied 1-standard-deviation expected move is approximately 27.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EEV?
- Collars on EEV hedge an existing long EEV 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 EEV implied volatility affect this collar?
- EEV ATM IV is at 96.60% with IV rank near 17.68%, 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.