URNJ Collar Strategy
URNJ (Sprott Junior Uranium Miners ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Under normal market conditions, this fund allocates a minimum of 80% of its total assets to securities within its benchmark index. This index is specifically constructed to track the financial performance of companies that obtain at least half of their revenue or maintain at least half of their assets from activities related to uranium. These activities include its extraction, exploration, project development, production, the collection of uranium royalties, or its distribution. The index typically holds between 30 and 40 underlying companies. It is important to note that this fund operates as a non-diversified investment.
URNJ (Sprott Junior Uranium Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $223.7M, a beta of 1.06 versus the broader market, a 52-week range of 19.12-40.81, average daily share volume of 319K, 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 1.06 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 June 29, 2026, spot at $23.41, ATM IV 60.80%, IV rank 38.12%, expected move 17.43%. 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 18-day expiry.
Why this collar structure on URNJ specifically: IV regime affects collar pricing on both sides; mid-range URNJ IV at 60.80% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 17.43% (roughly $4.08 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 URNJ expiries trade a higher absolute premium for lower per-day decay. Position sizing on URNJ should anchor to the underlying notional of $23.41 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 $23.41, the first option leg uses a $25.00 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 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 URNJ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $23.41 | long |
| Sell 1 | Call | $25.00 | $0.73 |
| Buy 1 | Put | $22.00 | $0.63 |
URNJ collar risk and reward
- Net Premium / Debit
- -$2,331.00
- Max Profit (per contract)
- $169.00
- Max Loss (per contract)
- -$131.00
- Breakeven(s)
- $23.31
- Risk / Reward Ratio
- 1.290
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% | -$131.00 |
| $5.18 | -77.9% | -$131.00 |
| $10.36 | -55.7% | -$131.00 |
| $15.53 | -33.6% | -$131.00 |
| $20.71 | -11.5% | -$131.00 |
| $25.88 | +10.6% | +$169.00 |
| $31.06 | +32.7% | +$169.00 |
| $36.23 | +54.8% | +$169.00 |
| $41.41 | +76.9% | +$169.00 |
| $46.58 | +99.0% | +$169.00 |
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 $19.33 on the downside to $27.49 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 38.12% 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 $23.41, 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 60.80%), the computed maximum profit is $169.00 per contract and the computed maximum loss is -$131.00 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 $23.31 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 17.43%; 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 60.80% with IV rank near 38.12%, 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.