SIJ Collar Strategy
SIJ (ProShares UltraShort Industrials), in the Financial Services sector, (Asset Management industry), listed on AMEX.
SIJ provides geared inverse (-2x) exposure to the S&P Industrials Select Sector Index, a market cap-weighted index of US industrial companies drawn exclusively from the S&P 500. The index includes the following GICS industries: aerospace and defense, building products, construction and engineering, electrical equipment, industrial conglomerates, machinery, trading companies and distributors, commercial services and supplies, professional services, air freight and logistics, passenger airlines, marine and ground transportation, and transportation infrastructure. SIJ is designed as a short-term trading vehicle, not a long-term investment. It holds swap agreements and resets on a daily basis. As a result, long-term returns could materially differ from those of the underlying index due to daily compounding. Prior to March 20, 2023, the fund tracked the Dow Jones US Industrials Index.
SIJ (ProShares UltraShort Industrials) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $867,643, a beta of -1.93 versus the broader market, a 52-week range of 15.25-27.02, average daily share volume of 7K, a public-listing history dating back to 2007, approximately 4K full-time employees. These structural characteristics shape how SIJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.93 indicates SIJ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SIJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SIJ?
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 SIJ snapshot
As of June 29, 2026, spot at $15.93, ATM IV 61.70%, IV rank 25.55%, expected move 17.69%. The collar on SIJ 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 SIJ specifically: IV regime affects collar pricing on both sides; compressed SIJ IV at 61.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.69% (roughly $2.82 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 SIJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on SIJ should anchor to the underlying notional of $15.93 per share and to the trader's directional view on SIJ etf.
SIJ collar setup
The SIJ 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 SIJ near $15.93, the first option leg uses a $16.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SIJ 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 SIJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $15.93 | long |
| Sell 1 | Call | $16.73 | N/A |
| Buy 1 | Put | $15.13 | N/A |
SIJ 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.
SIJ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SIJ. 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 SIJ
Collars on SIJ hedge an existing long SIJ 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.
SIJ thesis for this collar
The market-implied 1-standard-deviation range for SIJ extends from approximately $13.11 on the downside to $18.75 on the upside. A SIJ collar hedges an existing long SIJ 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 SIJ IV rank near 25.55% 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 SIJ at 61.70%. As a Financial Services name, SIJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SIJ-specific events.
SIJ 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. SIJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SIJ alongside the broader basket even when SIJ-specific fundamentals are unchanged. Always rebuild the position from current SIJ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SIJ?
- A collar on SIJ is the collar strategy applied to SIJ (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 SIJ etf trading near $15.93, the strikes shown on this page are snapped to the nearest listed SIJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SIJ 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 SIJ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 61.70%), 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 SIJ collar?
- The breakeven for the SIJ 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 SIJ market-implied 1-standard-deviation expected move is approximately 17.69%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SIJ?
- Collars on SIJ hedge an existing long SIJ 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 SIJ implied volatility affect this collar?
- SIJ ATM IV is at 61.70% with IV rank near 25.55%, 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.