EPV Collar Strategy
EPV (ProShares - UltraShort FTSE Europe), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares UltraShort FTSE Europe seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the FTSE Developed Europe All Cap Index.
EPV (ProShares - UltraShort FTSE Europe) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $8.6M, a beta of -1.32 versus the broader market, a 52-week range of 18.52-29.15, average daily share volume of 60K, a public-listing history dating back to 2009. These structural characteristics shape how EPV etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.32 indicates EPV has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. EPV pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EPV?
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 EPV snapshot
As of May 15, 2026, spot at $20.16, ATM IV 42.20%, IV rank 29.67%, expected move 12.10%. The collar on EPV 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 EPV specifically: IV regime affects collar pricing on both sides; compressed EPV IV at 42.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.10% (roughly $2.44 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 EPV expiries trade a higher absolute premium for lower per-day decay. Position sizing on EPV should anchor to the underlying notional of $20.16 per share and to the trader's directional view on EPV etf.
EPV collar setup
The EPV 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 EPV near $20.16, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EPV 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 EPV shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $20.16 | long |
| Sell 1 | Call | $21.00 | $0.78 |
| Buy 1 | Put | $19.00 | $0.48 |
EPV collar risk and reward
- Net Premium / Debit
- -$1,986.00
- Max Profit (per contract)
- $114.00
- Max Loss (per contract)
- -$86.00
- Breakeven(s)
- $19.86
- Risk / Reward Ratio
- 1.326
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.
EPV collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EPV. 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% | -$86.00 |
| $4.47 | -77.8% | -$86.00 |
| $8.92 | -55.7% | -$86.00 |
| $13.38 | -33.6% | -$86.00 |
| $17.84 | -11.5% | -$86.00 |
| $22.29 | +10.6% | +$114.00 |
| $26.75 | +32.7% | +$114.00 |
| $31.20 | +54.8% | +$114.00 |
| $35.66 | +76.9% | +$114.00 |
| $40.12 | +99.0% | +$114.00 |
When traders use collar on EPV
Collars on EPV hedge an existing long EPV 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.
EPV thesis for this collar
The market-implied 1-standard-deviation range for EPV extends from approximately $17.72 on the downside to $22.60 on the upside. A EPV collar hedges an existing long EPV 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 EPV IV rank near 29.67% 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 EPV at 42.20%. As a Financial Services name, EPV options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EPV-specific events.
EPV 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. EPV positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EPV alongside the broader basket even when EPV-specific fundamentals are unchanged. Always rebuild the position from current EPV chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EPV?
- A collar on EPV is the collar strategy applied to EPV (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 EPV etf trading near $20.16, the strikes shown on this page are snapped to the nearest listed EPV chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EPV 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 EPV collar priced from the end-of-day chain at a 30-day expiry (ATM IV 42.20%), the computed maximum profit is $114.00 per contract and the computed maximum loss is -$86.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EPV collar?
- The breakeven for the EPV collar priced on this page is roughly $19.86 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 EPV market-implied 1-standard-deviation expected move is approximately 12.10%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EPV?
- Collars on EPV hedge an existing long EPV 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 EPV implied volatility affect this collar?
- EPV ATM IV is at 42.20% with IV rank near 29.67%, 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.