SJB Collar Strategy
SJB (ProShares - Short High Yield), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Short High Yield fund (SJB) is designed to deliver daily investment returns that are the exact opposite of the Markit iBoxx $ Liquid High Yield Index's daily performance, before any deductions for management fees and other operational expenses.
SJB (ProShares - Short High Yield) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $48.8M, a beta of -0.68 versus the broader market, a 52-week range of 15.05-15.71, average daily share volume of 170K, a public-listing history dating back to 2011. These structural characteristics shape how SJB etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -0.68 indicates SJB has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SJB pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SJB?
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.
SJB snapshot
As of September 29, 2026, spot at $15.46, ATM IV 1.00%, IV rank 0.00%, expected move 0.29%. The collar on SJB below is built from the September 29, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 17-day expiry.
Why this collar structure on SJB specifically: IV regime affects collar pricing on both sides; compressed SJB IV at 1.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 0.29% (roughly $0.04 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SJB expiries trade a higher absolute premium for lower per-day decay. Position sizing on SJB should anchor to the underlying notional of $15.46 per share and to the trader's directional view on SJB etf.
SJB collar setup
The SJB collar below is built from the September 29, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SJB at $15.46 on that close, the first option leg uses a $16.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SJB chain at a 17-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 SJB shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $15.46 | long |
| Sell 1 | Call | $16.00 | $0.09 |
| Buy 1 | Put | $15.00 | $0.09 |
SJB collar risk and reward
- Net Premium / Debit
- -$1,546.00
- Max Profit (per contract)
- $54.00
- Max Loss (per contract)
- -$46.00
- Breakeven(s)
- $15.46
- Risk / Reward Ratio
- 1.174
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.
SJB collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SJB. 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 | -99.9% | -$46.00 |
| $3.43 | -77.8% | -$46.00 |
| $6.84 | -55.7% | -$46.00 |
| $10.26 | -33.6% | -$46.00 |
| $13.68 | -11.5% | -$46.00 |
| $17.10 | +10.6% | +$54.00 |
| $20.51 | +32.7% | +$54.00 |
| $23.93 | +54.8% | +$54.00 |
| $27.35 | +76.9% | +$54.00 |
| $30.76 | +99.0% | +$54.00 |
When traders use collar on SJB
Collars on SJB hedge an existing long SJB 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.
SJB thesis for this collar
The market-implied 1-standard-deviation range for SJB extends from approximately $15.42 on the downside to $15.50 on the upside. A SJB collar hedges an existing long SJB 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 SJB IV rank near 0.00% 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 SJB at 1.00%. As a Financial Services name, SJB options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SJB-specific events.
SJB 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. SJB positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SJB alongside the broader basket even when SJB-specific fundamentals are unchanged. Always rebuild the position from current SJB chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SJB?
- A collar on SJB is the collar strategy applied to SJB (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 SJB etf at $15.46 on the September 29, 2026 close, the strikes shown on this page are snapped to the nearest listed SJB chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SJB 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 SJB collar priced from the September 29, 2026 end-of-day chain at a 30-day expiry (ATM IV 1.00%), the computed maximum profit is $54.00 per contract and the computed maximum loss is -$46.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SJB collar?
- The breakeven for the SJB collar priced on this page is roughly $15.46 at expiration, derived from the September 29, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SJB market-implied 1-standard-deviation expected move in the same options snapshot is approximately 0.29%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SJB?
- Collars on SJB hedge an existing long SJB 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 SJB implied volatility affect this collar?
- SJB ATM IV is at 1.00% with IV rank near 0.00%, 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.