SKRE Collar Strategy
SKRE (Tuttle Capital Daily 2X Inverse Regional Banks ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on NASDAQ.
Under normal circumstances, this fund allocates a minimum of 80% of its net assets (including any capital borrowed for investment purposes) to swap agreements. These agreements are engineered to deliver twice the inverse (opposite) daily performance of TSLA. The fund manager's objective is to achieve daily leveraged inverse investment results. Consequently, this fund operates very differently from typical exchange-traded funds and carries unique and elevated risks. Furthermore, its investment portfolio is not diversified.
SKRE (Tuttle Capital Daily 2X Inverse Regional Banks ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $2.0M, a beta of -1.56 versus the broader market, a 52-week range of 5.7-11.92, average daily share volume of 35K, a public-listing history dating back to 2024. These structural characteristics shape how SKRE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.56 indicates SKRE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SKRE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SKRE?
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.
SKRE snapshot
As of August 14, 2026, spot at $5.77, ATM IV 114.70%, IV rank 20.90%, expected move 32.88%. The collar on SKRE below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this collar structure on SKRE specifically: IV regime affects collar pricing on both sides; compressed SKRE IV at 114.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 32.88% (roughly $1.90 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SKRE expiries trade a higher absolute premium for lower per-day decay. Position sizing on SKRE should anchor to the underlying notional of $5.77 per share and to the trader's directional view on SKRE etf.
SKRE collar setup
The SKRE 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 SKRE at $5.77 on that close, the first option leg uses a $6.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SKRE chain at a 35-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 SKRE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $5.77 | long |
| Sell 1 | Call | $6.06 | N/A |
| Buy 1 | Put | $5.48 | N/A |
SKRE 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.
SKRE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SKRE. 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 SKRE
Collars on SKRE hedge an existing long SKRE 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.
SKRE thesis for this collar
The market-implied 1-standard-deviation range for SKRE extends from approximately $3.87 on the downside to $7.67 on the upside. A SKRE collar hedges an existing long SKRE 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 SKRE IV rank near 20.90% 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 SKRE at 114.70%. As a Financial Services name, SKRE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SKRE-specific events.
SKRE 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. SKRE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SKRE alongside the broader basket even when SKRE-specific fundamentals are unchanged. Always rebuild the position from current SKRE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SKRE?
- A collar on SKRE is the collar strategy applied to SKRE (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 SKRE etf at $5.77 on the most recent close, the strikes shown on this page are snapped to the nearest listed SKRE chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SKRE 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 SKRE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 114.70%), 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 SKRE collar?
- The breakeven for the SKRE collar priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 SKRE market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SKRE?
- Collars on SKRE hedge an existing long SKRE 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 SKRE implied volatility affect this collar?
- SKRE ATM IV is at 114.70% with IV rank near 20.90%, 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.