ETHD Collar Strategy
ETHD (ProShares - UltraShort Ether ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the Bloomberg Ethereum Index.
ETHD (ProShares - UltraShort Ether ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $90.2M, a beta of -4.37 versus the broader market, a 52-week range of 27.6-196.1, average daily share volume of 633K, 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 -4.37 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.
Current ETHD snapshot
As of May 15, 2026, spot at $53.41, ATM IV 101.80%, IV rank 10.14%, expected move 29.19%. The collar on ETHD 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 ETHD specifically: IV regime affects collar pricing on both sides; compressed ETHD IV at 101.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.19% (roughly $15.59 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 ETHD expiries trade a higher absolute premium for lower per-day decay. Position sizing on ETHD should anchor to the underlying notional of $53.41 per share and to the trader's directional view on ETHD etf.
ETHD collar setup
The ETHD 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 ETHD near $53.41, the first option leg uses a $56.00 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 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 ETHD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $53.41 | long |
| Sell 1 | Call | $56.00 | $5.45 |
| Buy 1 | Put | $51.00 | $5.55 |
ETHD collar risk and reward
- Net Premium / Debit
- -$5,351.00
- Max Profit (per contract)
- $249.00
- Max Loss (per contract)
- -$251.00
- Breakeven(s)
- $53.51
- Risk / Reward Ratio
- 0.992
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% | -$251.00 |
| $11.82 | -77.9% | -$251.00 |
| $23.63 | -55.8% | -$251.00 |
| $35.43 | -33.7% | -$251.00 |
| $47.24 | -11.5% | -$251.00 |
| $59.05 | +10.6% | +$249.00 |
| $70.86 | +32.7% | +$249.00 |
| $82.67 | +54.8% | +$249.00 |
| $94.48 | +76.9% | +$249.00 |
| $106.28 | +99.0% | +$249.00 |
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 $37.82 on the downside to $69.00 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 10.14% 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 ETHD at 101.80%. 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 trading near $53.41, the strikes shown on this page are snapped to the nearest listed ETHD chain strike and the premiums come straight from the end-of-day 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 end-of-day chain at a 30-day expiry (ATM IV 101.80%), the computed maximum profit is $249.00 per contract and the computed maximum loss is -$251.00 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 $53.51 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 ETHD market-implied 1-standard-deviation expected move is approximately 29.19%; 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 101.80% with IV rank near 10.14%, 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.