URNJ Collar Strategy
URNJ (Sprott Junior Uranium Miners ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The fund will, under normal circumstances, invest at least 80% of its total assets in securities of the index. The index is designed to track the performance of companies that derive at least 50% of their revenue and/or assets from (i) mining, exploration, development, and production of uranium; (ii) earning uranium royalties; and/or (iii) supplying uranium. The index generally consists of from 30 to 40 constituents. The fund is non-diversified.
URNJ (Sprott Junior Uranium Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $285.7M, a beta of 1.21 versus the broader market, a 52-week range of 15.54-40.81, average daily share volume of 385K, a public-listing history dating back to 2023. These structural characteristics shape how URNJ etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.21 places URNJ roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. URNJ pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on URNJ?
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 URNJ snapshot
As of May 15, 2026, spot at $27.69, ATM IV 63.40%, IV rank 43.20%, expected move 18.18%. The collar on URNJ 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 URNJ specifically: IV regime affects collar pricing on both sides; mid-range URNJ IV at 63.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 18.18% (roughly $5.03 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 URNJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on URNJ should anchor to the underlying notional of $27.69 per share and to the trader's directional view on URNJ etf.
URNJ collar setup
The URNJ 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 URNJ near $27.69, the first option leg uses a $29.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URNJ 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 URNJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $27.69 | long |
| Sell 1 | Call | $29.00 | $1.85 |
| Buy 1 | Put | $26.00 | $1.28 |
URNJ collar risk and reward
- Net Premium / Debit
- -$2,711.50
- Max Profit (per contract)
- $188.50
- Max Loss (per contract)
- -$111.50
- Breakeven(s)
- $27.12
- Risk / Reward Ratio
- 1.691
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.
URNJ collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on URNJ. 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% | -$111.50 |
| $6.13 | -77.9% | -$111.50 |
| $12.25 | -55.8% | -$111.50 |
| $18.37 | -33.6% | -$111.50 |
| $24.50 | -11.5% | -$111.50 |
| $30.62 | +10.6% | +$188.50 |
| $36.74 | +32.7% | +$188.50 |
| $42.86 | +54.8% | +$188.50 |
| $48.98 | +76.9% | +$188.50 |
| $55.10 | +99.0% | +$188.50 |
When traders use collar on URNJ
Collars on URNJ hedge an existing long URNJ 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.
URNJ thesis for this collar
The market-implied 1-standard-deviation range for URNJ extends from approximately $22.66 on the downside to $32.72 on the upside. A URNJ collar hedges an existing long URNJ 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 URNJ IV rank near 43.20% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on URNJ should anchor more to the directional view and the expected-move geometry. As a Financial Services name, URNJ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URNJ-specific events.
URNJ 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. URNJ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URNJ alongside the broader basket even when URNJ-specific fundamentals are unchanged. Always rebuild the position from current URNJ chain quotes before placing a trade.
Frequently asked questions
- What is a collar on URNJ?
- A collar on URNJ is the collar strategy applied to URNJ (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 URNJ etf trading near $27.69, the strikes shown on this page are snapped to the nearest listed URNJ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are URNJ 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 URNJ collar priced from the end-of-day chain at a 30-day expiry (ATM IV 63.40%), the computed maximum profit is $188.50 per contract and the computed maximum loss is -$111.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URNJ collar?
- The breakeven for the URNJ collar priced on this page is roughly $27.12 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 URNJ market-implied 1-standard-deviation expected move is approximately 18.18%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on URNJ?
- Collars on URNJ hedge an existing long URNJ 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 URNJ implied volatility affect this collar?
- URNJ ATM IV is at 63.40% with IV rank near 43.20%, 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.