JNUG Collar Strategy
JNUG (Direxion Daily Junior Gold Miners Index Bull 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Junior Gold Miners Index Bull and Bear 2X ETFs seek daily investment results, before fees and expenses, of 200%, or 200% of the inverse (or opposite), of the performance of the MVIS Global Junior Gold Miners Index. There is no guarantee these funds will achieve their stated investment objectives.
JNUG (Direxion Daily Junior Gold Miners Index Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $566.8M, a beta of 0.57 versus the broader market, a 52-week range of 58.57-363.55, average daily share volume of 267K, a public-listing history dating back to 2013. These structural characteristics shape how JNUG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.57 indicates JNUG has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. JNUG pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on JNUG?
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 JNUG snapshot
As of May 15, 2026, spot at $182.24, ATM IV 104.50%, IV rank 53.68%, expected move 29.96%. The collar on JNUG 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 JNUG specifically: IV regime affects collar pricing on both sides; mid-range JNUG IV at 104.50% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 29.96% (roughly $54.60 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 JNUG expiries trade a higher absolute premium for lower per-day decay. Position sizing on JNUG should anchor to the underlying notional of $182.24 per share and to the trader's directional view on JNUG etf.
JNUG collar setup
The JNUG 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 JNUG near $182.24, the first option leg uses a $191.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed JNUG 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 JNUG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $182.24 | long |
| Sell 1 | Call | $191.00 | $18.50 |
| Buy 1 | Put | $173.00 | $17.60 |
JNUG collar risk and reward
- Net Premium / Debit
- -$18,134.00
- Max Profit (per contract)
- $966.00
- Max Loss (per contract)
- -$834.00
- Breakeven(s)
- $181.34
- Risk / Reward Ratio
- 1.158
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.
JNUG collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on JNUG. 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% | -$834.00 |
| $40.30 | -77.9% | -$834.00 |
| $80.60 | -55.8% | -$834.00 |
| $120.89 | -33.7% | -$834.00 |
| $161.18 | -11.6% | -$834.00 |
| $201.48 | +10.6% | +$966.00 |
| $241.77 | +32.7% | +$966.00 |
| $282.06 | +54.8% | +$966.00 |
| $322.36 | +76.9% | +$966.00 |
| $362.65 | +99.0% | +$966.00 |
When traders use collar on JNUG
Collars on JNUG hedge an existing long JNUG 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.
JNUG thesis for this collar
The market-implied 1-standard-deviation range for JNUG extends from approximately $127.64 on the downside to $236.84 on the upside. A JNUG collar hedges an existing long JNUG 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 JNUG IV rank near 53.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on JNUG should anchor more to the directional view and the expected-move geometry. As a Financial Services name, JNUG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to JNUG-specific events.
JNUG 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. JNUG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move JNUG alongside the broader basket even when JNUG-specific fundamentals are unchanged. Always rebuild the position from current JNUG chain quotes before placing a trade.
Frequently asked questions
- What is a collar on JNUG?
- A collar on JNUG is the collar strategy applied to JNUG (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 JNUG etf trading near $182.24, the strikes shown on this page are snapped to the nearest listed JNUG chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are JNUG 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 JNUG collar priced from the end-of-day chain at a 30-day expiry (ATM IV 104.50%), the computed maximum profit is $966.00 per contract and the computed maximum loss is -$834.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a JNUG collar?
- The breakeven for the JNUG collar priced on this page is roughly $181.34 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 JNUG market-implied 1-standard-deviation expected move is approximately 29.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on JNUG?
- Collars on JNUG hedge an existing long JNUG 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 JNUG implied volatility affect this collar?
- JNUG ATM IV is at 104.50% with IV rank near 53.68%, 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.