UGL Collar Strategy
UGL (ProShares - Ultra Gold), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares Ultra Gold seeks daily investment results, before fees and expenses, that correspond to two times (2x) the daily performance of the Bloomberg Gold SubindexSM.
UGL (ProShares - Ultra Gold) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $957.9M, a beta of 0.07 versus the broader market, a 52-week range of 32.1125-90.4, average daily share volume of 3.4M, a public-listing history dating back to 2008. These structural characteristics shape how UGL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.07 indicates UGL has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on UGL?
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 UGL snapshot
As of May 15, 2026, spot at $57.24, ATM IV 47.40%, IV rank 41.22%, expected move 13.59%. The collar on UGL 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 UGL specifically: IV regime affects collar pricing on both sides; mid-range UGL IV at 47.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 13.59% (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 UGL expiries trade a higher absolute premium for lower per-day decay. Position sizing on UGL should anchor to the underlying notional of $57.24 per share and to the trader's directional view on UGL etf.
UGL collar setup
The UGL 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 UGL near $57.24, 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 UGL 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 UGL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $57.24 | long |
| Sell 1 | Call | $60.00 | $2.20 |
| Buy 1 | Put | $54.00 | $1.80 |
UGL collar risk and reward
- Net Premium / Debit
- -$5,684.00
- Max Profit (per contract)
- $316.00
- Max Loss (per contract)
- -$284.00
- Breakeven(s)
- $56.84
- Risk / Reward Ratio
- 1.113
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.
UGL collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UGL. 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% | -$284.00 |
| $12.66 | -77.9% | -$284.00 |
| $25.32 | -55.8% | -$284.00 |
| $37.97 | -33.7% | -$284.00 |
| $50.63 | -11.5% | -$284.00 |
| $63.28 | +10.6% | +$316.00 |
| $75.94 | +32.7% | +$316.00 |
| $88.59 | +54.8% | +$316.00 |
| $101.25 | +76.9% | +$316.00 |
| $113.90 | +99.0% | +$316.00 |
When traders use collar on UGL
Collars on UGL hedge an existing long UGL 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.
UGL thesis for this collar
The market-implied 1-standard-deviation range for UGL extends from approximately $49.46 on the downside to $65.02 on the upside. A UGL collar hedges an existing long UGL 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 UGL IV rank near 41.22% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UGL should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UGL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UGL-specific events.
UGL 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. UGL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UGL alongside the broader basket even when UGL-specific fundamentals are unchanged. Always rebuild the position from current UGL chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UGL?
- A collar on UGL is the collar strategy applied to UGL (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 UGL etf trading near $57.24, the strikes shown on this page are snapped to the nearest listed UGL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UGL 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 UGL collar priced from the end-of-day chain at a 30-day expiry (ATM IV 47.40%), the computed maximum profit is $316.00 per contract and the computed maximum loss is -$284.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UGL collar?
- The breakeven for the UGL collar priced on this page is roughly $56.84 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 UGL market-implied 1-standard-deviation expected move is approximately 13.59%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UGL?
- Collars on UGL hedge an existing long UGL 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 UGL implied volatility affect this collar?
- UGL ATM IV is at 47.40% with IV rank near 41.22%, 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.