UCC Collar Strategy
UCC (ProShares - Ultra Consumer Discretionary), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra Consumer Discretionary fund is designed to achieve daily returns, prior to any charges or costs, that are double (2x) the one-day performance of the S&P Consumer Discretionary Select SectorSM Index.
UCC (ProShares - Ultra Consumer Discretionary) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $11.5M, a beta of 2.43 versus the broader market, a 52-week range of 39.96-56.96, average daily share volume of 5K, a public-listing history dating back to 2007. These structural characteristics shape how UCC etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.43 indicates UCC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UCC pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UCC?
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 UCC snapshot
As of June 30, 2026, spot at $48.02, ATM IV 52.30%, IV rank 25.03%, expected move 14.99%. The collar on UCC 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 UCC specifically: IV regime affects collar pricing on both sides; compressed UCC IV at 52.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 14.99% (roughly $7.20 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 UCC expiries trade a higher absolute premium for lower per-day decay. Position sizing on UCC should anchor to the underlying notional of $48.02 per share and to the trader's directional view on UCC etf.
UCC collar setup
The UCC 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 UCC near $48.02, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UCC 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 UCC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $48.02 | long |
| Sell 1 | Call | $50.00 | $1.42 |
| Buy 1 | Put | $46.00 | $1.26 |
UCC collar risk and reward
- Net Premium / Debit
- -$4,786.00
- Max Profit (per contract)
- $214.00
- Max Loss (per contract)
- -$186.00
- Breakeven(s)
- $47.86
- Risk / Reward Ratio
- 1.151
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.
UCC collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UCC. 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% | -$186.00 |
| $10.63 | -77.9% | -$186.00 |
| $21.24 | -55.8% | -$186.00 |
| $31.86 | -33.7% | -$186.00 |
| $42.48 | -11.5% | -$186.00 |
| $53.09 | +10.6% | +$214.00 |
| $63.71 | +32.7% | +$214.00 |
| $74.32 | +54.8% | +$214.00 |
| $84.94 | +76.9% | +$214.00 |
| $95.56 | +99.0% | +$214.00 |
When traders use collar on UCC
Collars on UCC hedge an existing long UCC 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.
UCC thesis for this collar
The market-implied 1-standard-deviation range for UCC extends from approximately $40.82 on the downside to $55.22 on the upside. A UCC collar hedges an existing long UCC 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 UCC IV rank near 25.03% 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 UCC at 52.30%. As a Financial Services name, UCC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UCC-specific events.
UCC 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. UCC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UCC alongside the broader basket even when UCC-specific fundamentals are unchanged. Always rebuild the position from current UCC chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UCC?
- A collar on UCC is the collar strategy applied to UCC (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 UCC etf trading near $48.02, the strikes shown on this page are snapped to the nearest listed UCC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UCC 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 UCC collar priced from the end-of-day chain at a 30-day expiry (ATM IV 52.30%), the computed maximum profit is $214.00 per contract and the computed maximum loss is -$186.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UCC collar?
- The breakeven for the UCC collar priced on this page is roughly $47.86 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 UCC market-implied 1-standard-deviation expected move is approximately 14.99%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UCC?
- Collars on UCC hedge an existing long UCC 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 UCC implied volatility affect this collar?
- UCC ATM IV is at 52.30% with IV rank near 25.03%, 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.