IGHG Collar Strategy
IGHG (ProShares - Investment Grade - Interest Rate Hedged), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The index is comprised of (a) long positions in USD-denominated investment grade corporate bonds issued by both U.S. and foreign domiciled companies; and (b) short positions in U.S. Treasury notes or bonds ("Treasury Securities") of, in aggregate, approximate equivalent duration to the investment grade bonds. The fund will invest at least 80% of its total assets in component securities (i.e., securities of the index) and invest at least 80% of its total assets in investment grade bonds.
IGHG (ProShares - Investment Grade - Interest Rate Hedged) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $276.9M, a beta of -0.03 versus the broader market, a 52-week range of 76.83-79.56, average daily share volume of 14K, a public-listing history dating back to 2013. These structural characteristics shape how IGHG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.03 indicates IGHG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. IGHG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on IGHG?
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 IGHG snapshot
As of May 15, 2026, spot at $78.94, ATM IV 20.90%, IV rank 15.66%, expected move 5.99%. The collar on IGHG 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 IGHG specifically: IV regime affects collar pricing on both sides; compressed IGHG IV at 20.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 5.99% (roughly $4.73 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 IGHG expiries trade a higher absolute premium for lower per-day decay. Position sizing on IGHG should anchor to the underlying notional of $78.94 per share and to the trader's directional view on IGHG etf.
IGHG collar setup
The IGHG 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 IGHG near $78.94, the first option leg uses a $83.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IGHG 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 IGHG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $78.94 | long |
| Sell 1 | Call | $83.00 | $0.49 |
| Buy 1 | Put | $75.00 | $0.82 |
IGHG collar risk and reward
- Net Premium / Debit
- -$7,927.00
- Max Profit (per contract)
- $373.00
- Max Loss (per contract)
- -$427.00
- Breakeven(s)
- $79.27
- Risk / Reward Ratio
- 0.874
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.
IGHG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on IGHG. 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% | -$427.00 |
| $17.46 | -77.9% | -$427.00 |
| $34.92 | -55.8% | -$427.00 |
| $52.37 | -33.7% | -$427.00 |
| $69.82 | -11.6% | -$427.00 |
| $87.27 | +10.6% | +$373.00 |
| $104.73 | +32.7% | +$373.00 |
| $122.18 | +54.8% | +$373.00 |
| $139.63 | +76.9% | +$373.00 |
| $157.09 | +99.0% | +$373.00 |
When traders use collar on IGHG
Collars on IGHG hedge an existing long IGHG 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.
IGHG thesis for this collar
The market-implied 1-standard-deviation range for IGHG extends from approximately $74.21 on the downside to $83.67 on the upside. A IGHG collar hedges an existing long IGHG 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 IGHG IV rank near 15.66% 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 IGHG at 20.90%. As a Financial Services name, IGHG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IGHG-specific events.
IGHG 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. IGHG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IGHG alongside the broader basket even when IGHG-specific fundamentals are unchanged. Always rebuild the position from current IGHG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on IGHG?
- A collar on IGHG is the collar strategy applied to IGHG (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 IGHG etf trading near $78.94, the strikes shown on this page are snapped to the nearest listed IGHG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IGHG 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 IGHG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 20.90%), the computed maximum profit is $373.00 per contract and the computed maximum loss is -$427.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IGHG collar?
- The breakeven for the IGHG collar priced on this page is roughly $79.27 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 IGHG market-implied 1-standard-deviation expected move is approximately 5.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on IGHG?
- Collars on IGHG hedge an existing long IGHG 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 IGHG implied volatility affect this collar?
- IGHG ATM IV is at 20.90% with IV rank near 15.66%, 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.