ROM Collar Strategy
ROM (ProShares - Ultra Technology), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra Technology fund (ROM) endeavors to provide daily investment returns that accurately reflect double (2x) the daily performance of the S&P Technology Select SectorSM Index. This goal is measured prior to factoring in any fees or operational expenses.
ROM (ProShares - Ultra Technology) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $852.9M, a beta of 3.09 versus the broader market, a 52-week range of 71.36-171.82, average daily share volume of 69K, a public-listing history dating back to 2007. These structural characteristics shape how ROM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.09 indicates ROM has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. ROM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on ROM?
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.
ROM snapshot
As of August 14, 2026, spot at $151.00, ATM IV 55.60%, IV rank 44.01%, expected move 15.94%. The collar on ROM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on ROM specifically: IV regime affects collar pricing on both sides; mid-range ROM IV at 55.60% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.94% (roughly $24.07 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated ROM expiries trade a higher absolute premium for lower per-day decay. Position sizing on ROM should anchor to the underlying notional of $151.00 per share and to the trader's directional view on ROM etf.
ROM collar setup
The ROM collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With ROM at $151.00 on that close, the first option leg uses a $160.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ROM chain at a 35-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 ROM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $151.00 | long |
| Sell 1 | Call | $160.00 | $7.10 |
| Buy 1 | Put | $143.00 | $6.65 |
ROM collar risk and reward
- Net Premium / Debit
- -$15,055.00
- Max Profit (per contract)
- $945.00
- Max Loss (per contract)
- -$755.00
- Breakeven(s)
- $150.55
- Risk / Reward Ratio
- 1.252
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.
ROM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on ROM. 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% | -$755.00 |
| $33.40 | -77.9% | -$755.00 |
| $66.78 | -55.8% | -$755.00 |
| $100.17 | -33.7% | -$755.00 |
| $133.55 | -11.6% | -$755.00 |
| $166.94 | +10.6% | +$945.00 |
| $200.32 | +32.7% | +$945.00 |
| $233.71 | +54.8% | +$945.00 |
| $267.10 | +76.9% | +$945.00 |
| $300.48 | +99.0% | +$945.00 |
When traders use collar on ROM
Collars on ROM hedge an existing long ROM 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.
ROM thesis for this collar
The market-implied 1-standard-deviation range for ROM extends from approximately $126.93 on the downside to $175.07 on the upside. A ROM collar hedges an existing long ROM 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 ROM IV rank near 44.01% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on ROM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, ROM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ROM-specific events.
ROM 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. ROM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ROM alongside the broader basket even when ROM-specific fundamentals are unchanged. Always rebuild the position from current ROM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on ROM?
- A collar on ROM is the collar strategy applied to ROM (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 ROM etf at $151.00 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed ROM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are ROM 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 ROM collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 55.60%), the computed maximum profit is $945.00 per contract and the computed maximum loss is -$755.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ROM collar?
- The breakeven for the ROM collar priced on this page is roughly $150.55 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The ROM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on ROM?
- Collars on ROM hedge an existing long ROM 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 ROM implied volatility affect this collar?
- ROM ATM IV is at 55.60% with IV rank near 44.01%, 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.