REGL Collar Strategy
REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF), in the Financial Services sector, (Asset Management - Income industry), listed on CBOE.
Under ordinary market conditions, this fund is structured to commit a significant majority—at least 80% of its overall investments—to the specific stocks that make up its reference index. This underlying index is composed of a minimum of 40 individual companies, each assigned an identical weighting within the portfolio. Furthermore, to promote diversification, no single industry sector is permitted to constitute more than 30% of the index's total value.
REGL (ProShares - S&P MidCap 400 Dividend Aristocrats ETF) trades in the Financial Services sector, specifically Asset Management - Income, with a market capitalization of approximately $1.68B, a beta of 0.70 versus the broader market, a 52-week range of 80.52-93.738, average daily share volume of 53K, a public-listing history dating back to 2015. These structural characteristics shape how REGL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.70 places REGL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. REGL pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on REGL?
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 REGL snapshot
As of June 29, 2026, spot at $91.63, ATM IV 21.70%, IV rank 42.97%, expected move 6.22%. The collar on REGL 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 109-day expiry.
Why this collar structure on REGL specifically: IV regime affects collar pricing on both sides; mid-range REGL IV at 21.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.22% (roughly $5.70 on the underlying). The 109-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated REGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on REGL should anchor to the underlying notional of $91.63 per share and to the trader's directional view on REGL etf.
REGL collar setup
The REGL 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 REGL near $91.63, the first option leg uses a $96.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REGL chain at a 109-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 REGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $91.63 | long |
| Sell 1 | Call | $96.00 | $2.60 |
| Buy 1 | Put | $87.00 | $1.02 |
REGL collar risk and reward
- Net Premium / Debit
- -$9,005.00
- Max Profit (per contract)
- $595.00
- Max Loss (per contract)
- -$305.00
- Breakeven(s)
- $90.05
- Risk / Reward Ratio
- 1.951
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.
REGL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on REGL. 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% | -$305.00 |
| $20.27 | -77.9% | -$305.00 |
| $40.53 | -55.8% | -$305.00 |
| $60.79 | -33.7% | -$305.00 |
| $81.05 | -11.6% | -$305.00 |
| $101.30 | +10.6% | +$595.00 |
| $121.56 | +32.7% | +$595.00 |
| $141.82 | +54.8% | +$595.00 |
| $162.08 | +76.9% | +$595.00 |
| $182.34 | +99.0% | +$595.00 |
When traders use collar on REGL
Collars on REGL hedge an existing long REGL 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.
REGL thesis for this collar
The market-implied 1-standard-deviation range for REGL extends from approximately $85.93 on the downside to $97.33 on the upside. A REGL collar hedges an existing long REGL 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 REGL IV rank near 42.97% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on REGL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, REGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REGL-specific events.
REGL 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. REGL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REGL alongside the broader basket even when REGL-specific fundamentals are unchanged. Always rebuild the position from current REGL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on REGL?
- A collar on REGL is the collar strategy applied to REGL (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 REGL etf trading near $91.63, the strikes shown on this page are snapped to the nearest listed REGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REGL 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 REGL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 21.70%), the computed maximum profit is $595.00 per contract and the computed maximum loss is -$305.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a REGL collar?
- The breakeven for the REGL collar priced on this page is roughly $90.05 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 REGL market-implied 1-standard-deviation expected move is approximately 6.22%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on REGL?
- Collars on REGL hedge an existing long REGL 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 REGL implied volatility affect this collar?
- REGL ATM IV is at 21.70% with IV rank near 42.97%, 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.