UBR Collar Strategy
UBR (ProShares - Ultra MSCI Brazil Capped), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra MSCI Brazil Capped fund's primary goal is to deliver daily investment returns that are double (2x) the daily performance of the MSCI Brazil 25/50 Index. These results are calculated before any fees or expenses are taken into account.
UBR (ProShares - Ultra MSCI Brazil Capped) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $3.9M, a beta of 1.01 versus the broader market, a 52-week range of 18.09-43.88, average daily share volume of 5K, a public-listing history dating back to 2010. These structural characteristics shape how UBR etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places UBR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UBR pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UBR?
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 UBR snapshot
As of June 30, 2026, spot at $29.41, ATM IV 40.30%, IV rank 13.15%, expected move 11.55%. The collar on UBR 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 17-day expiry.
Why this collar structure on UBR specifically: IV regime affects collar pricing on both sides; compressed UBR IV at 40.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 11.55% (roughly $3.40 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 UBR expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBR should anchor to the underlying notional of $29.41 per share and to the trader's directional view on UBR etf.
UBR collar setup
The UBR 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 UBR near $29.41, the first option leg uses a $31.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBR 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 UBR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $29.41 | long |
| Sell 1 | Call | $31.00 | $1.16 |
| Buy 1 | Put | $28.00 | $1.11 |
UBR collar risk and reward
- Net Premium / Debit
- -$2,936.00
- Max Profit (per contract)
- $164.00
- Max Loss (per contract)
- -$136.00
- Breakeven(s)
- $29.36
- Risk / Reward Ratio
- 1.206
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.
UBR collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UBR. 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% | -$136.00 |
| $6.51 | -77.9% | -$136.00 |
| $13.01 | -55.8% | -$136.00 |
| $19.51 | -33.6% | -$136.00 |
| $26.02 | -11.5% | -$136.00 |
| $32.52 | +10.6% | +$164.00 |
| $39.02 | +32.7% | +$164.00 |
| $45.52 | +54.8% | +$164.00 |
| $52.02 | +76.9% | +$164.00 |
| $58.52 | +99.0% | +$164.00 |
When traders use collar on UBR
Collars on UBR hedge an existing long UBR 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.
UBR thesis for this collar
The market-implied 1-standard-deviation range for UBR extends from approximately $26.01 on the downside to $32.81 on the upside. A UBR collar hedges an existing long UBR 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 UBR IV rank near 13.15% 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 UBR at 40.30%. As a Financial Services name, UBR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBR-specific events.
UBR 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. UBR positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBR alongside the broader basket even when UBR-specific fundamentals are unchanged. Always rebuild the position from current UBR chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UBR?
- A collar on UBR is the collar strategy applied to UBR (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 UBR etf trading near $29.41, the strikes shown on this page are snapped to the nearest listed UBR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UBR 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 UBR collar priced from the end-of-day chain at a 30-day expiry (ATM IV 40.30%), the computed maximum profit is $164.00 per contract and the computed maximum loss is -$136.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UBR collar?
- The breakeven for the UBR collar priced on this page is roughly $29.36 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 UBR market-implied 1-standard-deviation expected move is approximately 11.55%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UBR?
- Collars on UBR hedge an existing long UBR 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 UBR implied volatility affect this collar?
- UBR ATM IV is at 40.30% with IV rank near 13.15%, 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.