SBIT Collar Strategy
SBIT (ProShares - UltraShort Bitcoin ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
This ETF is designed to deliver daily investment returns, calculated prior to any associated costs or fees, that precisely track two times the inverse (-2x) of the Bloomberg Bitcoin Index's performance each day.
SBIT (ProShares - UltraShort Bitcoin ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $166.3M, a beta of -2.17 versus the broader market, a 52-week range of 23.6-76.515, average daily share volume of 1.1M, a public-listing history dating back to 2024. These structural characteristics shape how SBIT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.17 indicates SBIT has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SBIT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SBIT?
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 SBIT snapshot
As of June 30, 2026, spot at $69.75, ATM IV 86.10%, IV rank 30.57%, expected move 24.68%. The collar on SBIT 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 SBIT specifically: IV regime affects collar pricing on both sides; mid-range SBIT IV at 86.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 24.68% (roughly $17.22 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 SBIT expiries trade a higher absolute premium for lower per-day decay. Position sizing on SBIT should anchor to the underlying notional of $69.75 per share and to the trader's directional view on SBIT etf.
SBIT collar setup
The SBIT 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 SBIT near $69.75, the first option leg uses a $75.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SBIT 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 SBIT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $69.75 | long |
| Sell 1 | Call | $75.00 | $3.18 |
| Buy 1 | Put | $65.00 | $2.55 |
SBIT collar risk and reward
- Net Premium / Debit
- -$6,912.50
- Max Profit (per contract)
- $587.50
- Max Loss (per contract)
- -$412.50
- Breakeven(s)
- $69.13
- Risk / Reward Ratio
- 1.424
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.
SBIT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SBIT. 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% | -$412.50 |
| $15.43 | -77.9% | -$412.50 |
| $30.85 | -55.8% | -$412.50 |
| $46.27 | -33.7% | -$412.50 |
| $61.69 | -11.5% | -$412.50 |
| $77.12 | +10.6% | +$587.50 |
| $92.54 | +32.7% | +$587.50 |
| $107.96 | +54.8% | +$587.50 |
| $123.38 | +76.9% | +$587.50 |
| $138.80 | +99.0% | +$587.50 |
When traders use collar on SBIT
Collars on SBIT hedge an existing long SBIT 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.
SBIT thesis for this collar
The market-implied 1-standard-deviation range for SBIT extends from approximately $52.53 on the downside to $86.97 on the upside. A SBIT collar hedges an existing long SBIT 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 SBIT IV rank near 30.57% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SBIT should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SBIT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SBIT-specific events.
SBIT 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. SBIT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SBIT alongside the broader basket even when SBIT-specific fundamentals are unchanged. Always rebuild the position from current SBIT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SBIT?
- A collar on SBIT is the collar strategy applied to SBIT (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 SBIT etf trading near $69.75, the strikes shown on this page are snapped to the nearest listed SBIT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SBIT 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 SBIT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 86.10%), the computed maximum profit is $587.50 per contract and the computed maximum loss is -$412.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SBIT collar?
- The breakeven for the SBIT collar priced on this page is roughly $69.13 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 SBIT market-implied 1-standard-deviation expected move is approximately 24.68%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SBIT?
- Collars on SBIT hedge an existing long SBIT 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 SBIT implied volatility affect this collar?
- SBIT ATM IV is at 86.10% with IV rank near 30.57%, 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.