SGDM Collar Strategy
SGDM (Sprott Gold Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Sprott Gold Miners ETF (SGDM) endeavors to replicate the investment performance of its underlying benchmark index. This index specifically targets gold-producing companies situated in the United States and Canada, provided their common stock or American Depositary Receipts (ADRs) are traded on the Toronto Stock Exchange, the New York Stock Exchange, or NASDAQ. Typically, the fund commits a substantial portion—at least 90% of its net assets—to the very securities that compose this index. It is important to note that this fund maintains a non-diversified status.
SGDM (Sprott Gold Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $673.7M, a beta of 0.54 versus the broader market, a 52-week range of 43.511-96.5, average daily share volume of 63K, a public-listing history dating back to 2014. These structural characteristics shape how SGDM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.54 indicates SGDM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SGDM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SGDM?
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 SGDM snapshot
As of June 29, 2026, spot at $62.16, ATM IV 46.30%, IV rank 41.16%, expected move 13.27%. The collar on SGDM 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 18-day expiry.
Why this collar structure on SGDM specifically: IV regime affects collar pricing on both sides; mid-range SGDM IV at 46.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.27% (roughly $8.25 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SGDM expiries trade a higher absolute premium for lower per-day decay. Position sizing on SGDM should anchor to the underlying notional of $62.16 per share and to the trader's directional view on SGDM etf.
SGDM collar setup
The SGDM 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 SGDM near $62.16, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SGDM chain at a 18-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 SGDM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $62.16 | long |
| Sell 1 | Call | $65.00 | $1.68 |
| Buy 1 | Put | $59.00 | $1.15 |
SGDM collar risk and reward
- Net Premium / Debit
- -$6,163.50
- Max Profit (per contract)
- $336.50
- Max Loss (per contract)
- -$263.50
- Breakeven(s)
- $61.64
- Risk / Reward Ratio
- 1.277
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.
SGDM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SGDM. 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% | -$263.50 |
| $13.75 | -77.9% | -$263.50 |
| $27.50 | -55.8% | -$263.50 |
| $41.24 | -33.7% | -$263.50 |
| $54.98 | -11.5% | -$263.50 |
| $68.72 | +10.6% | +$336.50 |
| $82.47 | +32.7% | +$336.50 |
| $96.21 | +54.8% | +$336.50 |
| $109.95 | +76.9% | +$336.50 |
| $123.70 | +99.0% | +$336.50 |
When traders use collar on SGDM
Collars on SGDM hedge an existing long SGDM 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.
SGDM thesis for this collar
The market-implied 1-standard-deviation range for SGDM extends from approximately $53.91 on the downside to $70.41 on the upside. A SGDM collar hedges an existing long SGDM 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 SGDM IV rank near 41.16% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on SGDM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SGDM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SGDM-specific events.
SGDM 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. SGDM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SGDM alongside the broader basket even when SGDM-specific fundamentals are unchanged. Always rebuild the position from current SGDM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SGDM?
- A collar on SGDM is the collar strategy applied to SGDM (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 SGDM etf trading near $62.16, the strikes shown on this page are snapped to the nearest listed SGDM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SGDM 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 SGDM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 46.30%), the computed maximum profit is $336.50 per contract and the computed maximum loss is -$263.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SGDM collar?
- The breakeven for the SGDM collar priced on this page is roughly $61.64 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 SGDM market-implied 1-standard-deviation expected move is approximately 13.27%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SGDM?
- Collars on SGDM hedge an existing long SGDM 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 SGDM implied volatility affect this collar?
- SGDM ATM IV is at 46.30% with IV rank near 41.16%, 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.