SH Collar Strategy
SH (ProShares - Short S&P500), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
ProShares Short S&P500 seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the S&P 500.
SH (ProShares - Short S&P500) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $1.14B, a beta of -0.96 versus the broader market, a 52-week range of 33.33-42.89, average daily share volume of 13.3M, a public-listing history dating back to 2006. These structural characteristics shape how SH etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.96 indicates SH has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SH pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SH?
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 SH snapshot
As of May 15, 2026, spot at $33.53, ATM IV 17.00%, IV rank 9.53%, expected move 4.87%. The collar on SH 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 SH specifically: IV regime affects collar pricing on both sides; compressed SH IV at 17.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 4.87% (roughly $1.63 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 SH expiries trade a higher absolute premium for lower per-day decay. Position sizing on SH should anchor to the underlying notional of $33.53 per share and to the trader's directional view on SH etf.
SH collar setup
The SH 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 SH near $33.53, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SH 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 SH shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $33.53 | long |
| Sell 1 | Call | $35.00 | $0.28 |
| Buy 1 | Put | $32.00 | $0.09 |
SH collar risk and reward
- Net Premium / Debit
- -$3,334.50
- Max Profit (per contract)
- $165.50
- Max Loss (per contract)
- -$134.50
- Breakeven(s)
- $33.35
- Risk / Reward Ratio
- 1.230
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.
SH collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SH. 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% | -$134.50 |
| $7.42 | -77.9% | -$134.50 |
| $14.84 | -55.8% | -$134.50 |
| $22.25 | -33.6% | -$134.50 |
| $29.66 | -11.5% | -$134.50 |
| $37.07 | +10.6% | +$165.50 |
| $44.49 | +32.7% | +$165.50 |
| $51.90 | +54.8% | +$165.50 |
| $59.31 | +76.9% | +$165.50 |
| $66.72 | +99.0% | +$165.50 |
When traders use collar on SH
Collars on SH hedge an existing long SH 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.
SH thesis for this collar
The market-implied 1-standard-deviation range for SH extends from approximately $31.90 on the downside to $35.16 on the upside. A SH collar hedges an existing long SH 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 SH IV rank near 9.53% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on SH at 17.00%. As a Financial Services name, SH options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SH-specific events.
SH 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. SH positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SH alongside the broader basket even when SH-specific fundamentals are unchanged. Always rebuild the position from current SH chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SH?
- A collar on SH is the collar strategy applied to SH (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 SH etf trading near $33.53, the strikes shown on this page are snapped to the nearest listed SH chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SH 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 SH collar priced from the end-of-day chain at a 30-day expiry (ATM IV 17.00%), the computed maximum profit is $165.50 per contract and the computed maximum loss is -$134.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SH collar?
- The breakeven for the SH collar priced on this page is roughly $33.35 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 SH market-implied 1-standard-deviation expected move is approximately 4.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SH?
- Collars on SH hedge an existing long SH 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 SH implied volatility affect this collar?
- SH ATM IV is at 17.00% with IV rank near 9.53%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.