UBOT Collar Strategy
UBOT (Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
This ETF is designed to provide daily investment returns that are double (200%) the performance of the Indxx Global Robotics and Artificial Intelligence Thematic Index, before accounting for any associated fees and expenses. However, there is no assurance that the fund will consistently meet its specified investment objective.
UBOT (Direxion Daily Robotics, Artificial Intelligence & Automation Index Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $33.3M, a beta of 3.19 versus the broader market, a 52-week range of 19.12-32.08, average daily share volume of 23K, a public-listing history dating back to 2018. These structural characteristics shape how UBOT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.19 indicates UBOT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UBOT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UBOT?
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 UBOT snapshot
As of June 29, 2026, spot at $24.50, ATM IV 59.90%, IV rank 7.65%, expected move 17.17%. The collar on UBOT 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 UBOT specifically: IV regime affects collar pricing on both sides; compressed UBOT IV at 59.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.17% (roughly $4.21 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 UBOT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBOT should anchor to the underlying notional of $24.50 per share and to the trader's directional view on UBOT etf.
UBOT collar setup
The UBOT 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 UBOT near $24.50, 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 UBOT 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 UBOT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $24.50 | long |
| Sell 1 | Call | $26.00 | $0.69 |
| Buy 1 | Put | $23.00 | $0.73 |
UBOT collar risk and reward
- Net Premium / Debit
- -$2,454.00
- Max Profit (per contract)
- $146.00
- Max Loss (per contract)
- -$154.00
- Breakeven(s)
- $24.54
- Risk / Reward Ratio
- 0.948
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.
UBOT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UBOT. 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% | -$154.00 |
| $5.43 | -77.9% | -$154.00 |
| $10.84 | -55.7% | -$154.00 |
| $16.26 | -33.6% | -$154.00 |
| $21.67 | -11.5% | -$154.00 |
| $27.09 | +10.6% | +$146.00 |
| $32.51 | +32.7% | +$146.00 |
| $37.92 | +54.8% | +$146.00 |
| $43.34 | +76.9% | +$146.00 |
| $48.75 | +99.0% | +$146.00 |
When traders use collar on UBOT
Collars on UBOT hedge an existing long UBOT 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.
UBOT thesis for this collar
The market-implied 1-standard-deviation range for UBOT extends from approximately $20.29 on the downside to $28.71 on the upside. A UBOT collar hedges an existing long UBOT 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 UBOT IV rank near 7.65% 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 UBOT at 59.90%. As a Financial Services name, UBOT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBOT-specific events.
UBOT 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. UBOT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBOT alongside the broader basket even when UBOT-specific fundamentals are unchanged. Always rebuild the position from current UBOT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UBOT?
- A collar on UBOT is the collar strategy applied to UBOT (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 UBOT etf trading near $24.50, the strikes shown on this page are snapped to the nearest listed UBOT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UBOT 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 UBOT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 59.90%), the computed maximum profit is $146.00 per contract and the computed maximum loss is -$154.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UBOT collar?
- The breakeven for the UBOT collar priced on this page is roughly $24.54 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 UBOT market-implied 1-standard-deviation expected move is approximately 17.17%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UBOT?
- Collars on UBOT hedge an existing long UBOT 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 UBOT implied volatility affect this collar?
- UBOT ATM IV is at 59.90% with IV rank near 7.65%, 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.