SCC Collar Strategy
SCC (ProShares - UltraShort Consumer Discretionary), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares UltraShort Consumer Discretionary seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the S&P Consumer Discretionary Select SectorSM Index.
SCC (ProShares - UltraShort Consumer Discretionary) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.0M, a beta of -2.25 versus the broader market, a 52-week range of 13.12-19.6, average daily share volume of 29K, a public-listing history dating back to 2007. These structural characteristics shape how SCC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.25 indicates SCC has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SCC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SCC?
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 SCC snapshot
As of May 15, 2026, spot at $14.88, ATM IV 109.70%, IV rank 31.42%, expected move 31.45%. The collar on SCC 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 SCC specifically: IV regime affects collar pricing on both sides; mid-range SCC IV at 109.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 31.45% (roughly $4.68 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 SCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCC should anchor to the underlying notional of $14.88 per share and to the trader's directional view on SCC etf.
SCC collar setup
The SCC 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 SCC near $14.88, the first option leg uses a $15.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCC 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 SCC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $14.88 | long |
| Sell 1 | Call | $15.62 | N/A |
| Buy 1 | Put | $14.14 | N/A |
SCC 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.
SCC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SCC. 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 SCC
Collars on SCC hedge an existing long SCC 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.
SCC thesis for this collar
The market-implied 1-standard-deviation range for SCC extends from approximately $10.20 on the downside to $19.56 on the upside. A SCC collar hedges an existing long SCC 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 SCC IV rank near 31.42% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SCC should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCC-specific events.
SCC 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. SCC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCC alongside the broader basket even when SCC-specific fundamentals are unchanged. Always rebuild the position from current SCC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SCC?
- A collar on SCC is the collar strategy applied to SCC (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 SCC etf trading near $14.88, the strikes shown on this page are snapped to the nearest listed SCC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SCC 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 SCC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 109.70%), 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 SCC collar?
- The breakeven for the SCC 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 SCC market-implied 1-standard-deviation expected move is approximately 31.45%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SCC?
- Collars on SCC hedge an existing long SCC 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 SCC implied volatility affect this collar?
- SCC ATM IV is at 109.70% with IV rank near 31.42%, 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.