PEX Collar Strategy
PEX (ProShares - Global Listed Private Equity ETF), in the Financial Services sector, (Asset Management - Global industry), listed on CBOE.
The index consists of up to 30 qualifying listed private equity companies. The fund invests insecurities that ProShare Advisors believes, in combination, should track the performance of the index. It will invest at least 80% of its total assets in component securities. The fund will concentrate its investments in a particular industry or group of industries, country or region to approximately the same extent as the index is so concentrated. It is non-diversified.
PEX (ProShares - Global Listed Private Equity ETF) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $11.8M, a beta of 0.84 versus the broader market, a 52-week range of 20.49-29.48, average daily share volume of 4K, a public-listing history dating back to 2013. These structural characteristics shape how PEX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.84 places PEX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. PEX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on PEX?
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 PEX snapshot
As of May 15, 2026, spot at $21.74, ATM IV 45.80%, IV rank 18.03%, expected move 13.13%. The collar on PEX 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 PEX specifically: IV regime affects collar pricing on both sides; compressed PEX IV at 45.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.13% (roughly $2.85 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 PEX expiries trade a higher absolute premium for lower per-day decay. Position sizing on PEX should anchor to the underlying notional of $21.74 per share and to the trader's directional view on PEX etf.
PEX collar setup
The PEX 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 PEX near $21.74, the first option leg uses a $22.83 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PEX 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 PEX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $21.74 | long |
| Sell 1 | Call | $22.83 | N/A |
| Buy 1 | Put | $20.65 | N/A |
PEX collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
PEX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on PEX. 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.
When traders use collar on PEX
Collars on PEX hedge an existing long PEX 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.
PEX thesis for this collar
The market-implied 1-standard-deviation range for PEX extends from approximately $18.89 on the downside to $24.59 on the upside. A PEX collar hedges an existing long PEX 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 PEX IV rank near 18.03% 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 PEX at 45.80%. As a Financial Services name, PEX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PEX-specific events.
PEX 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. PEX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move PEX alongside the broader basket even when PEX-specific fundamentals are unchanged. Always rebuild the position from current PEX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on PEX?
- A collar on PEX is the collar strategy applied to PEX (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 PEX etf trading near $21.74, the strikes shown on this page are snapped to the nearest listed PEX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are PEX 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 PEX collar priced from the end-of-day chain at a 30-day expiry (ATM IV 45.80%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a PEX collar?
- The breakeven for the PEX collar priced on this page is no defined breakeven on the modeled curve 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 PEX market-implied 1-standard-deviation expected move is approximately 13.13%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on PEX?
- Collars on PEX hedge an existing long PEX 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 PEX implied volatility affect this collar?
- PEX ATM IV is at 45.80% with IV rank near 18.03%, 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.