GUSH Collar Strategy
GUSH (Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily S&P Oil & Gas Exploration & Production Bull and Bear 2X ETFs aim to generate daily returns that, prior to considering fees and expenses, equate to double (200%) the performance, or double (200%) the inverse performance, of the S&P Oil & Gas Exploration & Production Select Industry Index. It is important to note that there is no guarantee these funds will consistently meet their specific investment goals.
GUSH (Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $277.3M, a beta of 0.11 versus the broader market, a 52-week range of 20.805-48.66, average daily share volume of 1.1M, a public-listing history dating back to 2015. These structural characteristics shape how GUSH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.11 indicates GUSH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. GUSH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on GUSH?
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 GUSH snapshot
As of June 30, 2026, spot at $30.75, ATM IV 51.80%, IV rank 22.01%, expected move 14.85%. The collar on GUSH 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 GUSH specifically: IV regime affects collar pricing on both sides; compressed GUSH IV at 51.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.85% (roughly $4.57 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 GUSH expiries trade a higher absolute premium for lower per-day decay. Position sizing on GUSH should anchor to the underlying notional of $30.75 per share and to the trader's directional view on GUSH etf.
GUSH collar setup
The GUSH 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 GUSH near $30.75, the first option leg uses a $32.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GUSH 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 GUSH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $30.75 | long |
| Sell 1 | Call | $32.00 | $0.93 |
| Buy 1 | Put | $29.00 | $0.95 |
GUSH collar risk and reward
- Net Premium / Debit
- -$3,077.50
- Max Profit (per contract)
- $122.50
- Max Loss (per contract)
- -$177.50
- Breakeven(s)
- $30.78
- Risk / Reward Ratio
- 0.690
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.
GUSH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on GUSH. 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% | -$177.50 |
| $6.81 | -77.9% | -$177.50 |
| $13.61 | -55.8% | -$177.50 |
| $20.40 | -33.6% | -$177.50 |
| $27.20 | -11.5% | -$177.50 |
| $34.00 | +10.6% | +$122.50 |
| $40.80 | +32.7% | +$122.50 |
| $47.60 | +54.8% | +$122.50 |
| $54.39 | +76.9% | +$122.50 |
| $61.19 | +99.0% | +$122.50 |
When traders use collar on GUSH
Collars on GUSH hedge an existing long GUSH 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.
GUSH thesis for this collar
The market-implied 1-standard-deviation range for GUSH extends from approximately $26.18 on the downside to $35.32 on the upside. A GUSH collar hedges an existing long GUSH 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 GUSH IV rank near 22.01% 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 GUSH at 51.80%. As a Financial Services name, GUSH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GUSH-specific events.
GUSH 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. GUSH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GUSH alongside the broader basket even when GUSH-specific fundamentals are unchanged. Always rebuild the position from current GUSH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on GUSH?
- A collar on GUSH is the collar strategy applied to GUSH (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 GUSH etf trading near $30.75, the strikes shown on this page are snapped to the nearest listed GUSH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GUSH 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 GUSH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 51.80%), the computed maximum profit is $122.50 per contract and the computed maximum loss is -$177.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GUSH collar?
- The breakeven for the GUSH collar priced on this page is roughly $30.78 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 GUSH market-implied 1-standard-deviation expected move is approximately 14.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on GUSH?
- Collars on GUSH hedge an existing long GUSH 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 GUSH implied volatility affect this collar?
- GUSH ATM IV is at 51.80% with IV rank near 22.01%, 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.