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 $91.3M, a beta of -3.84 versus the broader market, a 52-week range of 27.6-160.7, average daily share volume of 468K, 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 -3.84 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 June 30, 2026, spot at $93.08, ATM IV 122.00%, IV rank 25.37%, expected move 34.98%. 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 17-day expiry.
Why this collar structure on ETHD specifically: IV regime affects collar pricing on both sides; compressed ETHD IV at 122.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 34.98% (roughly $32.56 on the underlying). The 17-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 $93.08 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 $93.08, the first option leg uses a $100.00 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 17-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 | $93.08 | long |
| Sell 1 | Call | $100.00 | $7.15 |
| Buy 1 | Put | $90.00 | $8.00 |
ETHD collar risk and reward
- Net Premium / Debit
- -$9,393.00
- Max Profit (per contract)
- $607.00
- Max Loss (per contract)
- -$393.00
- Breakeven(s)
- $93.93
- Risk / Reward Ratio
- 1.545
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% | -$393.00 |
| $20.59 | -77.9% | -$393.00 |
| $41.17 | -55.8% | -$393.00 |
| $61.75 | -33.7% | -$393.00 |
| $82.33 | -11.6% | -$393.00 |
| $102.91 | +10.6% | +$607.00 |
| $123.49 | +32.7% | +$607.00 |
| $144.07 | +54.8% | +$607.00 |
| $164.65 | +76.9% | +$607.00 |
| $185.22 | +99.0% | +$607.00 |
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 $60.52 on the downside to $125.64 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 25.37% 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 122.00%. 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 $93.08, 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 122.00%), the computed maximum profit is $607.00 per contract and the computed maximum loss is -$393.00 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 $93.93 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 34.98%; 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 122.00% with IV rank near 25.37%, 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.