UBT Collar Strategy
UBT (ProShares - Ultra 20+ Year Treasury), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra 20+ Year Treasury seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the ICE U.S. Treasury 20+ Year Bond Index.
UBT (ProShares - Ultra 20+ Year Treasury) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $63.5M, a beta of 4.74 versus the broader market, a 52-week range of 15.25-18.48, average daily share volume of 100K, a public-listing history dating back to 2010. These structural characteristics shape how UBT etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.74 indicates UBT has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UBT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UBT?
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 UBT snapshot
As of May 15, 2026, spot at $15.34, ATM IV 24.20%, IV rank 5.01%, expected move 6.94%. The collar on UBT 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 UBT specifically: IV regime affects collar pricing on both sides; compressed UBT IV at 24.20% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 6.94% (roughly $1.06 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 UBT expiries trade a higher absolute premium for lower per-day decay. Position sizing on UBT should anchor to the underlying notional of $15.34 per share and to the trader's directional view on UBT etf.
UBT collar setup
The UBT 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 UBT near $15.34, the first option leg uses a $16.11 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UBT 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 UBT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $15.34 | long |
| Sell 1 | Call | $16.11 | N/A |
| Buy 1 | Put | $14.57 | N/A |
UBT 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.
UBT collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UBT. 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 UBT
Collars on UBT hedge an existing long UBT 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.
UBT thesis for this collar
The market-implied 1-standard-deviation range for UBT extends from approximately $14.28 on the downside to $16.40 on the upside. A UBT collar hedges an existing long UBT 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 UBT IV rank near 5.01% 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 UBT at 24.20%. As a Financial Services name, UBT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UBT-specific events.
UBT 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. UBT positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UBT alongside the broader basket even when UBT-specific fundamentals are unchanged. Always rebuild the position from current UBT chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UBT?
- A collar on UBT is the collar strategy applied to UBT (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 UBT etf trading near $15.34, the strikes shown on this page are snapped to the nearest listed UBT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UBT 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 UBT collar priced from the end-of-day chain at a 30-day expiry (ATM IV 24.20%), 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 UBT collar?
- The breakeven for the UBT collar priced on this page is no defined breakeven on the modeled curve 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 UBT market-implied 1-standard-deviation expected move is approximately 6.94%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UBT?
- Collars on UBT hedge an existing long UBT 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 UBT implied volatility affect this collar?
- UBT ATM IV is at 24.20% with IV rank near 5.01%, 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.