UGE Collar Strategy
UGE (ProShares - Ultra Consumer Staples), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
ProShares Ultra Consumer Staples strives to achieve daily investment returns that are two times (2x) the daily performance of the S&P Consumer Staples Select Sector Index, prior to accounting for any fees and expenses.
UGE (ProShares - Ultra Consumer Staples) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $11.1M, a beta of 0.81 versus the broader market, a 52-week range of 15.74-22.26, average daily share volume of 67K, a public-listing history dating back to 2007. These structural characteristics shape how UGE etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.81 places UGE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. UGE pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UGE?
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 UGE snapshot
As of June 29, 2026, spot at $19.16, ATM IV 41.90%, IV rank 7.17%, expected move 12.01%. The collar on UGE 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 UGE specifically: IV regime affects collar pricing on both sides; compressed UGE IV at 41.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 12.01% (roughly $2.30 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 UGE expiries trade a higher absolute premium for lower per-day decay. Position sizing on UGE should anchor to the underlying notional of $19.16 per share and to the trader's directional view on UGE etf.
UGE collar setup
The UGE 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 UGE near $19.16, the first option leg uses a $20.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UGE 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 UGE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $19.16 | long |
| Sell 1 | Call | $20.00 | $0.38 |
| Buy 1 | Put | $18.00 | $0.25 |
UGE collar risk and reward
- Net Premium / Debit
- -$1,903.50
- Max Profit (per contract)
- $96.50
- Max Loss (per contract)
- -$103.50
- Breakeven(s)
- $19.04
- Risk / Reward Ratio
- 0.932
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.
UGE collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UGE. 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 | -99.9% | -$103.50 |
| $4.25 | -77.8% | -$103.50 |
| $8.48 | -55.7% | -$103.50 |
| $12.72 | -33.6% | -$103.50 |
| $16.95 | -11.5% | -$103.50 |
| $21.19 | +10.6% | +$96.50 |
| $25.42 | +32.7% | +$96.50 |
| $29.66 | +54.8% | +$96.50 |
| $33.89 | +76.9% | +$96.50 |
| $38.13 | +99.0% | +$96.50 |
When traders use collar on UGE
Collars on UGE hedge an existing long UGE 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.
UGE thesis for this collar
The market-implied 1-standard-deviation range for UGE extends from approximately $16.86 on the downside to $21.46 on the upside. A UGE collar hedges an existing long UGE 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 UGE IV rank near 7.17% 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 UGE at 41.90%. As a Financial Services name, UGE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UGE-specific events.
UGE 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. UGE positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UGE alongside the broader basket even when UGE-specific fundamentals are unchanged. Always rebuild the position from current UGE chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UGE?
- A collar on UGE is the collar strategy applied to UGE (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 UGE etf trading near $19.16, the strikes shown on this page are snapped to the nearest listed UGE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UGE 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 UGE collar priced from the end-of-day chain at a 30-day expiry (ATM IV 41.90%), the computed maximum profit is $96.50 per contract and the computed maximum loss is -$103.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UGE collar?
- The breakeven for the UGE collar priced on this page is roughly $19.04 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 UGE market-implied 1-standard-deviation expected move is approximately 12.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UGE?
- Collars on UGE hedge an existing long UGE 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 UGE implied volatility affect this collar?
- UGE ATM IV is at 41.90% with IV rank near 7.17%, 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.