EFZ Collar Strategy
EFZ (ProShares - Short MSCI EAFE), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
This ProShares fund is designed to generate daily returns that are precisely inverse (-1x) to the daily performance of the MSCI EAFE Index, prior to accounting for any charges and expenses.
EFZ (ProShares - Short MSCI EAFE) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $6.7M, a beta of -0.62 versus the broader market, a 52-week range of 21.94-27.28, average daily share volume of 9K, a public-listing history dating back to 2007. These structural characteristics shape how EFZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.62 indicates EFZ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EFZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EFZ?
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.
EFZ snapshot
As of November 13, 2026, spot at $23.04, ATM IV 15.60%, expected move 4.47%. The collar on EFZ below is built from the November 13, 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 EFZ specifically: IV rank is unavailable in the current snapshot, so regime-based timing for EFZ is inferred from ATM IV at 15.60% alone, with a market-implied 1-standard-deviation move of approximately 4.47% (roughly $1.03 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 EFZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on EFZ should anchor to the underlying notional of $23.04 per share and to the trader's directional view on EFZ etf.
EFZ collar setup
The EFZ collar below is built from the November 13, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With EFZ at $23.04 on that close, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EFZ 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 EFZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $23.04 | long |
| Sell 1 | Call | $24.00 | $0.13 |
| Buy 1 | Put | $22.00 | $0.10 |
EFZ collar risk and reward
- Net Premium / Debit
- -$2,301.00
- Max Profit (per contract)
- $99.00
- Max Loss (per contract)
- -$101.00
- Breakeven(s)
- $23.01
- Risk / Reward Ratio
- 0.980
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.
EFZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EFZ. 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% | -$101.00 |
| $5.10 | -77.9% | -$101.00 |
| $10.20 | -55.7% | -$101.00 |
| $15.29 | -33.6% | -$101.00 |
| $20.38 | -11.5% | -$101.00 |
| $25.48 | +10.6% | +$99.00 |
| $30.57 | +32.7% | +$99.00 |
| $35.66 | +54.8% | +$99.00 |
| $40.76 | +76.9% | +$99.00 |
| $45.85 | +99.0% | +$99.00 |
When traders use collar on EFZ
Collars on EFZ hedge an existing long EFZ 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.
EFZ thesis for this collar
The market-implied 1-standard-deviation range for EFZ extends from approximately $22.01 on the downside to $24.07 on the upside. A EFZ collar hedges an existing long EFZ 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. As a Financial Services name, EFZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EFZ-specific events.
EFZ 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. EFZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EFZ alongside the broader basket even when EFZ-specific fundamentals are unchanged. Always rebuild the position from current EFZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EFZ?
- A collar on EFZ is the collar strategy applied to EFZ (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 EFZ etf at $23.04 on the November 13, 2026 close, the strikes shown on this page are snapped to the nearest listed EFZ chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are EFZ 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 EFZ collar priced from the November 13, 2026 end-of-day chain at a 30-day expiry (ATM IV 15.60%), the computed maximum profit is $99.00 per contract and the computed maximum loss is -$101.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EFZ collar?
- The breakeven for the EFZ collar priced on this page is roughly $23.01 at expiration, derived from the November 13, 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 EFZ market-implied 1-standard-deviation expected move in the same options snapshot is approximately 4.47%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EFZ?
- Collars on EFZ hedge an existing long EFZ 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 EFZ implied volatility affect this collar?
- Current EFZ ATM IV is 15.60%; IV rank context is unavailable in the current snapshot.