UFO Collar Strategy
UFO (Procure Space ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Procure Space ETF seeks investment results that correspond generally to the performance, before the Fund’s fees and expenses, of an equity index called the 'S-Network Space Index' which is designed to measure the performance of companies engaged in space-related industries.
UFO (Procure Space ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $172.5M, a beta of 1.56 versus the broader market, a 52-week range of 23.695-57.115, average daily share volume of 720K, a public-listing history dating back to 2019. These structural characteristics shape how UFO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.56 indicates UFO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UFO pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UFO?
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 UFO snapshot
As of May 15, 2026, spot at $56.56, ATM IV 48.00%, IV rank 41.84%, expected move 13.76%. The collar on UFO 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 UFO specifically: IV regime affects collar pricing on both sides; mid-range UFO IV at 48.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.76% (roughly $7.78 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 UFO expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFO should anchor to the underlying notional of $56.56 per share and to the trader's directional view on UFO etf.
UFO collar setup
The UFO 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 UFO near $56.56, the first option leg uses a $60.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFO 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 UFO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $56.56 | long |
| Sell 1 | Call | $60.00 | $2.03 |
| Buy 1 | Put | $55.00 | $2.45 |
UFO collar risk and reward
- Net Premium / Debit
- -$5,698.50
- Max Profit (per contract)
- $301.50
- Max Loss (per contract)
- -$198.50
- Breakeven(s)
- $56.99
- Risk / Reward Ratio
- 1.519
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.
UFO collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UFO. 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% | -$198.50 |
| $12.51 | -77.9% | -$198.50 |
| $25.02 | -55.8% | -$198.50 |
| $37.52 | -33.7% | -$198.50 |
| $50.03 | -11.5% | -$198.50 |
| $62.53 | +10.6% | +$301.50 |
| $75.04 | +32.7% | +$301.50 |
| $87.54 | +54.8% | +$301.50 |
| $100.05 | +76.9% | +$301.50 |
| $112.55 | +99.0% | +$301.50 |
When traders use collar on UFO
Collars on UFO hedge an existing long UFO 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.
UFO thesis for this collar
The market-implied 1-standard-deviation range for UFO extends from approximately $48.78 on the downside to $64.34 on the upside. A UFO collar hedges an existing long UFO 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 UFO IV rank near 41.84% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UFO should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UFO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFO-specific events.
UFO 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. UFO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFO alongside the broader basket even when UFO-specific fundamentals are unchanged. Always rebuild the position from current UFO chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UFO?
- A collar on UFO is the collar strategy applied to UFO (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 UFO etf trading near $56.56, the strikes shown on this page are snapped to the nearest listed UFO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UFO 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 UFO collar priced from the end-of-day chain at a 30-day expiry (ATM IV 48.00%), the computed maximum profit is $301.50 per contract and the computed maximum loss is -$198.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UFO collar?
- The breakeven for the UFO collar priced on this page is roughly $56.99 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 UFO market-implied 1-standard-deviation expected move is approximately 13.76%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UFO?
- Collars on UFO hedge an existing long UFO 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 UFO implied volatility affect this collar?
- UFO ATM IV is at 48.00% with IV rank near 41.84%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.