SRS Collar Strategy
SRS (ProShares - UltraShort Real Estate), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
ProShares UltraShort Real Estate seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the S&P Real Estate Select SectorSM Index.
SRS (ProShares - UltraShort Real Estate) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $17.0M, a beta of -1.89 versus the broader market, a 52-week range of 39.58-51.32, average daily share volume of 12K, a public-listing history dating back to 2007. These structural characteristics shape how SRS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -1.89 indicates SRS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SRS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on SRS?
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 SRS snapshot
As of May 15, 2026, spot at $42.67, ATM IV 34.80%, IV rank 18.49%, expected move 9.98%. The collar on SRS 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 SRS specifically: IV regime affects collar pricing on both sides; compressed SRS IV at 34.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 9.98% (roughly $4.26 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 SRS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SRS should anchor to the underlying notional of $42.67 per share and to the trader's directional view on SRS etf.
SRS collar setup
The SRS 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 SRS near $42.67, the first option leg uses a $45.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SRS 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 SRS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $42.67 | long |
| Sell 1 | Call | $45.00 | $0.88 |
| Buy 1 | Put | $41.00 | $0.95 |
SRS collar risk and reward
- Net Premium / Debit
- -$4,274.50
- Max Profit (per contract)
- $225.50
- Max Loss (per contract)
- -$174.50
- Breakeven(s)
- $42.75
- Risk / Reward Ratio
- 1.292
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.
SRS collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on SRS. 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% | -$174.50 |
| $9.44 | -77.9% | -$174.50 |
| $18.88 | -55.8% | -$174.50 |
| $28.31 | -33.7% | -$174.50 |
| $37.74 | -11.5% | -$174.50 |
| $47.18 | +10.6% | +$225.50 |
| $56.61 | +32.7% | +$225.50 |
| $66.04 | +54.8% | +$225.50 |
| $75.48 | +76.9% | +$225.50 |
| $84.91 | +99.0% | +$225.50 |
When traders use collar on SRS
Collars on SRS hedge an existing long SRS 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.
SRS thesis for this collar
The market-implied 1-standard-deviation range for SRS extends from approximately $38.41 on the downside to $46.93 on the upside. A SRS collar hedges an existing long SRS 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 SRS IV rank near 18.49% 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 SRS at 34.80%. As a Financial Services name, SRS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SRS-specific events.
SRS 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. SRS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SRS alongside the broader basket even when SRS-specific fundamentals are unchanged. Always rebuild the position from current SRS chain quotes before placing a trade.
Frequently asked questions
- What is a collar on SRS?
- A collar on SRS is the collar strategy applied to SRS (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 SRS etf trading near $42.67, the strikes shown on this page are snapped to the nearest listed SRS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SRS 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 SRS collar priced from the end-of-day chain at a 30-day expiry (ATM IV 34.80%), the computed maximum profit is $225.50 per contract and the computed maximum loss is -$174.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SRS collar?
- The breakeven for the SRS collar priced on this page is roughly $42.75 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 SRS market-implied 1-standard-deviation expected move is approximately 9.98%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on SRS?
- Collars on SRS hedge an existing long SRS 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 SRS implied volatility affect this collar?
- SRS ATM IV is at 34.80% with IV rank near 18.49%, 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.