SGDJ Collar Strategy
SGDJ (Sprott Junior Gold Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund will invest at least 90% of its net assets in securities that comprise the underlying index. The underlying index aims to track the performance of "junior" gold companies primarily located in the U.S., Canada and Australia whose common stock, American Depositary Receipts ("ADRs") or Global Depositary Receipts ("GDRs") are traded on a regulated stock exchange in the form of shares tradeable for foreign investors without any restrictions. It is non-diversified.
SGDJ (Sprott Junior Gold Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $329.2M, a beta of 1.04 versus the broader market, a 52-week range of 42.8-115.775, average daily share volume of 82K, a public-listing history dating back to 2015. These structural characteristics shape how SGDJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.04 places SGDJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. SGDJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SGDJ?
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 SGDJ snapshot
As of May 15, 2026, spot at $90.66, ATM IV 49.20%, IV rank 50.88%, expected move 14.11%. The collar on SGDJ 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 SGDJ specifically: IV regime affects collar pricing on both sides; mid-range SGDJ IV at 49.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.11% (roughly $12.79 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 SGDJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGDJ should anchor to the underlying notional of $90.66 per share and to the trader's directional view on SGDJ etf.
SGDJ collar setup
The SGDJ 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 SGDJ near $90.66, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGDJ 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 SGDJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $90.66 | long |
| Sell 1 | Call | $95.00 | $3.65 |
| Buy 1 | Put | $86.00 | $3.48 |
SGDJ collar risk and reward
- Net Premium / Debit
- -$9,048.50
- Max Profit (per contract)
- $451.50
- Max Loss (per contract)
- -$448.50
- Breakeven(s)
- $90.49
- Risk / Reward Ratio
- 1.007
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.
SGDJ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SGDJ. 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% | -$448.50 |
| $20.05 | -77.9% | -$448.50 |
| $40.10 | -55.8% | -$448.50 |
| $60.14 | -33.7% | -$448.50 |
| $80.19 | -11.6% | -$448.50 |
| $100.23 | +10.6% | +$451.50 |
| $120.28 | +32.7% | +$451.50 |
| $140.32 | +54.8% | +$451.50 |
| $160.36 | +76.9% | +$451.50 |
| $180.41 | +99.0% | +$451.50 |
When traders use collar on SGDJ
Collars on SGDJ hedge an existing long SGDJ 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.
SGDJ thesis for this collar
The market-implied 1-standard-deviation range for SGDJ extends from approximately $77.87 on the downside to $103.45 on the upside. A SGDJ collar hedges an existing long SGDJ 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 SGDJ IV rank near 50.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SGDJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SGDJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGDJ-specific events.
SGDJ 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. SGDJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGDJ alongside the broader basket even when SGDJ-specific fundamentals are unchanged. Always rebuild the position from current SGDJ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SGDJ?
- A collar on SGDJ is the collar strategy applied to SGDJ (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 SGDJ etf trading near $90.66, the strikes shown on this page are snapped to the nearest listed SGDJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGDJ 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 SGDJ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 49.20%), the computed maximum profit is $451.50 per contract and the computed maximum loss is -$448.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SGDJ collar?
- The breakeven for the SGDJ collar priced on this page is roughly $90.49 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 SGDJ market-implied 1-standard-deviation expected move is approximately 14.11%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SGDJ?
- Collars on SGDJ hedge an existing long SGDJ 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 SGDJ implied volatility affect this collar?
- SGDJ ATM IV is at 49.20% with IV rank near 50.88%, 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.