EZJ Collar Strategy
EZJ (ProShares - Ultra MSCI Japan), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra MSCI Japan product is engineered to deliver daily returns that are precisely double the performance of the MSCI Japan Index, calculated before any management fees or operational expenses are factored in.
EZJ (ProShares - Ultra MSCI Japan) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $10.1M, a beta of 1.26 versus the broader market, a 52-week range of 39.68-71.55, average daily share volume of 6K, a public-listing history dating back to 2009. These structural characteristics shape how EZJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.26 places EZJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. EZJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on EZJ?
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 EZJ snapshot
As of June 30, 2026, spot at $64.87, ATM IV 271.00%, IV rank 100.00%, expected move 77.69%. The collar on EZJ 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 EZJ specifically: IV regime affects collar pricing on both sides; elevated EZJ IV at 271.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 77.69% (roughly $50.40 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 EZJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on EZJ should anchor to the underlying notional of $64.87 per share and to the trader's directional view on EZJ etf.
EZJ collar setup
The EZJ 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 EZJ near $64.87, the first option leg uses a $68.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed EZJ 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 EZJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $64.87 | long |
| Sell 1 | Call | $68.00 | $1.61 |
| Buy 1 | Put | $62.00 | $1.59 |
EZJ collar risk and reward
- Net Premium / Debit
- -$6,485.00
- Max Profit (per contract)
- $315.00
- Max Loss (per contract)
- -$285.00
- Breakeven(s)
- $64.85
- Risk / Reward Ratio
- 1.105
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.
EZJ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on EZJ. 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% | -$285.00 |
| $14.35 | -77.9% | -$285.00 |
| $28.69 | -55.8% | -$285.00 |
| $43.04 | -33.7% | -$285.00 |
| $57.38 | -11.5% | -$285.00 |
| $71.72 | +10.6% | +$315.00 |
| $86.06 | +32.7% | +$315.00 |
| $100.40 | +54.8% | +$315.00 |
| $114.75 | +76.9% | +$315.00 |
| $129.09 | +99.0% | +$315.00 |
When traders use collar on EZJ
Collars on EZJ hedge an existing long EZJ 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.
EZJ thesis for this collar
The market-implied 1-standard-deviation range for EZJ extends from approximately $14.47 on the downside to $115.27 on the upside. A EZJ collar hedges an existing long EZJ 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 EZJ IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on EZJ at 271.00%. As a Financial Services name, EZJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to EZJ-specific events.
EZJ 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. EZJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move EZJ alongside the broader basket even when EZJ-specific fundamentals are unchanged. Always rebuild the position from current EZJ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on EZJ?
- A collar on EZJ is the collar strategy applied to EZJ (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 EZJ etf trading near $64.87, the strikes shown on this page are snapped to the nearest listed EZJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are EZJ 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 EZJ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 271.00%), the computed maximum profit is $315.00 per contract and the computed maximum loss is -$285.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a EZJ collar?
- The breakeven for the EZJ collar priced on this page is roughly $64.85 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 EZJ market-implied 1-standard-deviation expected move is approximately 77.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on EZJ?
- Collars on EZJ hedge an existing long EZJ 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 EZJ implied volatility affect this collar?
- EZJ ATM IV is at 271.00% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.