PAWZ Collar Strategy
PAWZ (ProShares Pet Care ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
ProShares Trust - ProShares Pet Care ETF is an exchange traded fund launched and managed by ProShare Advisors LLC. The fund invests in public equity markets of global region. The fund invests in stocks of companies operating across consumer discretionary, retailing, internet and direct marketing retail, catalog specialty retail, catalog pet care product retail, internet and direct marketing retail, online specialty retail, online pet care product retail, specialty retail, specialty stores, household product stores, pet care product stores, consumer staples, household and personal products, household products, animal care products, pet toys, pet grooming products, health care, health care equipment and services, health care providers and services, health care facilities, veterinary services and animal hospitals, pet care services sectors. It invests in growth and value stocks of companies across diversified market capitalization. The fund seeks to track the performance of the FactSet Pet Care Index, by using full replication technique. ProShares Trust - ProShares Pet Care ETF was formed on November 5, 2018 and is domiciled in the United States.
PAWZ (ProShares Pet Care ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $41.2M, a beta of 1.09 versus the broader market, a 52-week range of 45.96-58.99, average daily share volume of 6K, a public-listing history dating back to 2018. These structural characteristics shape how PAWZ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.09 places PAWZ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PAWZ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PAWZ?
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 PAWZ snapshot
As of June 30, 2026, spot at $48.08, ATM IV 26.00%, IV rank 3.32%, expected move 7.45%. The collar on PAWZ 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 PAWZ specifically: IV regime affects collar pricing on both sides; compressed PAWZ IV at 26.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 7.45% (roughly $3.58 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 PAWZ expiries trade a higher absolute premium for lower per-day decay. Position sizing on PAWZ should anchor to the underlying notional of $48.08 per share and to the trader's directional view on PAWZ etf.
PAWZ collar setup
The PAWZ 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 PAWZ near $48.08, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PAWZ 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 PAWZ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $48.08 | long |
| Sell 1 | Call | $50.00 | $0.41 |
| Buy 1 | Put | $46.00 | $0.31 |
PAWZ collar risk and reward
- Net Premium / Debit
- -$4,798.00
- Max Profit (per contract)
- $202.00
- Max Loss (per contract)
- -$198.00
- Breakeven(s)
- $47.98
- Risk / Reward Ratio
- 1.020
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.
PAWZ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PAWZ. 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% | -$198.00 |
| $10.64 | -77.9% | -$198.00 |
| $21.27 | -55.8% | -$198.00 |
| $31.90 | -33.7% | -$198.00 |
| $42.53 | -11.5% | -$198.00 |
| $53.16 | +10.6% | +$202.00 |
| $63.79 | +32.7% | +$202.00 |
| $74.42 | +54.8% | +$202.00 |
| $85.05 | +76.9% | +$202.00 |
| $95.68 | +99.0% | +$202.00 |
When traders use collar on PAWZ
Collars on PAWZ hedge an existing long PAWZ 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.
PAWZ thesis for this collar
The market-implied 1-standard-deviation range for PAWZ extends from approximately $44.50 on the downside to $51.66 on the upside. A PAWZ collar hedges an existing long PAWZ 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 PAWZ IV rank near 3.32% 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 PAWZ at 26.00%. As a Financial Services name, PAWZ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PAWZ-specific events.
PAWZ 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. PAWZ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PAWZ alongside the broader basket even when PAWZ-specific fundamentals are unchanged. Always rebuild the position from current PAWZ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PAWZ?
- A collar on PAWZ is the collar strategy applied to PAWZ (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 PAWZ etf trading near $48.08, the strikes shown on this page are snapped to the nearest listed PAWZ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PAWZ 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 PAWZ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 26.00%), the computed maximum profit is $202.00 per contract and the computed maximum loss is -$198.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PAWZ collar?
- The breakeven for the PAWZ collar priced on this page is roughly $47.98 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 PAWZ market-implied 1-standard-deviation expected move is approximately 7.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PAWZ?
- Collars on PAWZ hedge an existing long PAWZ 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 PAWZ implied volatility affect this collar?
- PAWZ ATM IV is at 26.00% with IV rank near 3.32%, 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.