EMTY Collar Strategy
EMTY (ProShares - Decline of the Retail Store ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Decline of the Retail Store ETF seeks capital appreciation from the decline of bricks-and-mortar retailers through short exposure (-1x) to the Solactive-ProShares Bricks and Mortar Retail Store Index.
EMTY (ProShares - Decline of the Retail Store ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.9M, a beta of -1.11 versus the broader market, a 52-week range of 10.89-13.1, average daily share volume of 6K, a public-listing history dating back to 2017. These structural characteristics shape how EMTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.11 indicates EMTY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EMTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EMTY?
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 EMTY snapshot
As of May 15, 2026, spot at $12.61, ATM IV 70.20%, IV rank 14.50%, expected move 20.13%. The collar on EMTY 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 EMTY specifically: IV regime affects collar pricing on both sides; compressed EMTY IV at 70.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.13% (roughly $2.54 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 EMTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on EMTY should anchor to the underlying notional of $12.61 per share and to the trader's directional view on EMTY etf.
EMTY collar setup
The EMTY 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 EMTY near $12.61, the first option leg uses a $13.24 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EMTY 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 EMTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $12.61 | long |
| Sell 1 | Call | $13.24 | N/A |
| Buy 1 | Put | $11.98 | N/A |
EMTY collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
EMTY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EMTY. 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.
When traders use collar on EMTY
Collars on EMTY hedge an existing long EMTY 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.
EMTY thesis for this collar
The market-implied 1-standard-deviation range for EMTY extends from approximately $10.07 on the downside to $15.15 on the upside. A EMTY collar hedges an existing long EMTY 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 EMTY IV rank near 14.50% 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 EMTY at 70.20%. As a Financial Services name, EMTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EMTY-specific events.
EMTY 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. EMTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EMTY alongside the broader basket even when EMTY-specific fundamentals are unchanged. Always rebuild the position from current EMTY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EMTY?
- A collar on EMTY is the collar strategy applied to EMTY (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 EMTY etf trading near $12.61, the strikes shown on this page are snapped to the nearest listed EMTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EMTY 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 EMTY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 70.20%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EMTY collar?
- The breakeven for the EMTY collar priced on this page is no defined breakeven on the modeled curve 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 EMTY market-implied 1-standard-deviation expected move is approximately 20.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EMTY?
- Collars on EMTY hedge an existing long EMTY 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 EMTY implied volatility affect this collar?
- EMTY ATM IV is at 70.20% with IV rank near 14.50%, 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.