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 $247.1M, a beta of 0.01 versus the broader market, a 52-week range of 20.805-50.78, average daily share volume of 789K, 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 0.01 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.
GUSH snapshot
As of September 29, 2026, spot at $39.98, ATM IV 71.80%, IV rank 61.19%, expected move 20.58%. The collar on GUSH below is built from the September 29, 2026 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; mid-range GUSH IV at 71.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 20.58% (roughly $8.23 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 $39.98 per share and to the trader's directional view on GUSH etf.
GUSH collar setup
The GUSH collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With GUSH at $39.98 on that close, the first option leg uses a $42.00 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 | $39.98 | long |
| Sell 1 | Call | $42.00 | $1.55 |
| Buy 1 | Put | $38.00 | $1.53 |
GUSH collar risk and reward
- Net Premium / Debit
- -$3,995.50
- Max Profit (per contract)
- $204.50
- Max Loss (per contract)
- -$195.50
- Breakeven(s)
- $39.96
- Risk / Reward Ratio
- 1.046
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% | -$195.50 |
| $8.85 | -77.9% | -$195.50 |
| $17.69 | -55.8% | -$195.50 |
| $26.53 | -33.7% | -$195.50 |
| $35.36 | -11.5% | -$195.50 |
| $44.20 | +10.6% | +$204.50 |
| $53.04 | +32.7% | +$204.50 |
| $61.88 | +54.8% | +$204.50 |
| $70.72 | +76.9% | +$204.50 |
| $79.56 | +99.0% | +$204.50 |
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 $31.75 on the downside to $48.21 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 61.19% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on GUSH should anchor more to the directional view and the expected-move geometry. 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 at $39.98 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed GUSH chain strike and the premiums come straight from that session's 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 September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 71.80%), the computed maximum profit is $204.50 per contract and the computed maximum loss is -$195.50 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 $39.96 at expiration, derived from the September 29, 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 GUSH market-implied 1-standard-deviation expected move in the same options snapshot is approximately 20.58%; 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 71.80% with IV rank near 61.19%, 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.