ETHD Collar Strategy
ETHD (ProShares - UltraShort Ether ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
This ETF's objective is to achieve daily investment performance, before accounting for its fees and expenses, that is precisely two times the inverse (-2x) of the daily fluctuations of the Bloomberg Ethereum Index.
ETHD (ProShares - UltraShort Ether ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $82.0M, a beta of -3.93 versus the broader market, a 52-week range of 27.6-106.8, average daily share volume of 368K, a public-listing history dating back to 2024. These structural characteristics shape how ETHD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -3.93 indicates ETHD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. ETHD pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ETHD?
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.
ETHD snapshot
As of August 14, 2026, spot at $58.96, ATM IV 97.90%, IV rank 35.20%, expected move 28.07%. The collar on ETHD below is built from the August 14, 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 ETHD specifically: IV regime affects collar pricing on both sides; mid-range ETHD IV at 97.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 28.07% (roughly $16.55 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 ETHD expiries trade a higher absolute premium for lower per-day decay. Position sizing on ETHD should anchor to the underlying notional of $58.96 per share and to the trader's directional view on ETHD etf.
ETHD collar setup
The ETHD collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ETHD at $58.96 on that close, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ETHD 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 ETHD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $58.96 | long |
| Sell 1 | Call | $60.00 | $6.10 |
| Buy 1 | Put | $55.00 | $5.30 |
ETHD collar risk and reward
- Net Premium / Debit
- -$5,816.00
- Max Profit (per contract)
- $184.00
- Max Loss (per contract)
- -$316.00
- Breakeven(s)
- $58.16
- Risk / Reward Ratio
- 0.582
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.
ETHD collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ETHD. 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% | -$316.00 |
| $13.05 | -77.9% | -$316.00 |
| $26.08 | -55.8% | -$316.00 |
| $39.12 | -33.7% | -$316.00 |
| $52.15 | -11.5% | -$316.00 |
| $65.19 | +10.6% | +$184.00 |
| $78.22 | +32.7% | +$184.00 |
| $91.26 | +54.8% | +$184.00 |
| $104.29 | +76.9% | +$184.00 |
| $117.33 | +99.0% | +$184.00 |
When traders use collar on ETHD
Collars on ETHD hedge an existing long ETHD 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.
ETHD thesis for this collar
The market-implied 1-standard-deviation range for ETHD extends from approximately $42.41 on the downside to $75.51 on the upside. A ETHD collar hedges an existing long ETHD 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 ETHD IV rank near 35.20% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ETHD should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ETHD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ETHD-specific events.
ETHD 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. ETHD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ETHD alongside the broader basket even when ETHD-specific fundamentals are unchanged. Always rebuild the position from current ETHD chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ETHD?
- A collar on ETHD is the collar strategy applied to ETHD (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 ETHD etf at $58.96 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ETHD chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ETHD 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 ETHD collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 97.90%), the computed maximum profit is $184.00 per contract and the computed maximum loss is -$316.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ETHD collar?
- The breakeven for the ETHD collar priced on this page is roughly $58.16 at expiration, derived from the August 14, 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 ETHD market-implied 1-standard-deviation expected move in the same options snapshot is approximately 28.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ETHD?
- Collars on ETHD hedge an existing long ETHD 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 ETHD implied volatility affect this collar?
- ETHD ATM IV is at 97.90% with IV rank near 35.20%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.