TBF Collar Strategy
TBF (ProShares - Short 20+ Year Treasury), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Short 20+ Year Treasury seeks daily investment results, before fees and expenses, that correspond to the inverse (-1x) of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index.
TBF (ProShares - Short 20+ Year Treasury) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $69.7M, a beta of -2.38 versus the broader market, a 52-week range of 23.01-25.73, average daily share volume of 164K, a public-listing history dating back to 2009. These structural characteristics shape how TBF etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.38 indicates TBF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. TBF pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on TBF?
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 TBF snapshot
As of May 15, 2026, spot at $25.13, ATM IV 12.00%, IV rank 3.45%, expected move 3.44%. The collar on TBF 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 TBF specifically: IV regime affects collar pricing on both sides; compressed TBF IV at 12.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 3.44% (roughly $0.86 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 TBF expiries trade a higher absolute premium for lower per-day decay. Position sizing on TBF should anchor to the underlying notional of $25.13 per share and to the trader's directional view on TBF etf.
TBF collar setup
The TBF 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 TBF near $25.13, the first option leg uses a $26.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TBF 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 TBF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $25.13 | long |
| Sell 1 | Call | $26.00 | $0.15 |
| Buy 1 | Put | $24.00 | $0.05 |
TBF collar risk and reward
- Net Premium / Debit
- -$2,503.00
- Max Profit (per contract)
- $97.00
- Max Loss (per contract)
- -$103.00
- Breakeven(s)
- $25.03
- Risk / Reward Ratio
- 0.942
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.
TBF collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on TBF. 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% | -$103.00 |
| $5.57 | -77.9% | -$103.00 |
| $11.12 | -55.7% | -$103.00 |
| $16.68 | -33.6% | -$103.00 |
| $22.23 | -11.5% | -$103.00 |
| $27.79 | +10.6% | +$97.00 |
| $33.34 | +32.7% | +$97.00 |
| $38.90 | +54.8% | +$97.00 |
| $44.45 | +76.9% | +$97.00 |
| $50.01 | +99.0% | +$97.00 |
When traders use collar on TBF
Collars on TBF hedge an existing long TBF 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.
TBF thesis for this collar
The market-implied 1-standard-deviation range for TBF extends from approximately $24.27 on the downside to $25.99 on the upside. A TBF collar hedges an existing long TBF 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 TBF IV rank near 3.45% 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 TBF at 12.00%. As a Financial Services name, TBF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TBF-specific events.
TBF 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. TBF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TBF alongside the broader basket even when TBF-specific fundamentals are unchanged. Always rebuild the position from current TBF chain quotes before placing a trade.
Frequently asked questions
- What is a collar on TBF?
- A collar on TBF is the collar strategy applied to TBF (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 TBF etf trading near $25.13, the strikes shown on this page are snapped to the nearest listed TBF chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TBF 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 TBF collar priced from the end-of-day chain at a 30-day expiry (ATM IV 12.00%), the computed maximum profit is $97.00 per contract and the computed maximum loss is -$103.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TBF collar?
- The breakeven for the TBF collar priced on this page is roughly $25.03 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 TBF market-implied 1-standard-deviation expected move is approximately 3.44%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on TBF?
- Collars on TBF hedge an existing long TBF 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 TBF implied volatility affect this collar?
- TBF ATM IV is at 12.00% with IV rank near 3.45%, 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.