URNM Collar Strategy
URNM (Sprott Uranium Miners ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The fund will normally invest at least 80% of its total assets in securities of the index. The index is designed to track the performance of companies that devote at least 50% of their assets to (i) mining, exploration, development, and production of uranium; and/or (ii) holding physical uranium, owning uranium royalties, or engaging in other, non-mining activities that support the uranium mining industry. It is non-diversified.
URNM (Sprott Uranium Miners ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.48B, a beta of 1.01 versus the broader market, a 52-week range of 35.933-84.95, average daily share volume of 737K, a public-listing history dating back to 2019. These structural characteristics shape how URNM etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.01 places URNM roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. URNM pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on URNM?
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 URNM snapshot
As of May 15, 2026, spot at $60.30, ATM IV 53.30%, IV rank 51.73%, expected move 15.28%. The collar on URNM 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 URNM specifically: IV regime affects collar pricing on both sides; mid-range URNM IV at 53.30% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.28% (roughly $9.21 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 URNM expiries trade a higher absolute premium for lower per-day decay. Position sizing on URNM should anchor to the underlying notional of $60.30 per share and to the trader's directional view on URNM etf.
URNM collar setup
The URNM 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 URNM near $60.30, the first option leg uses a $63.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URNM 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 URNM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $60.30 | long |
| Sell 1 | Call | $63.00 | $2.73 |
| Buy 1 | Put | $57.00 | $2.13 |
URNM collar risk and reward
- Net Premium / Debit
- -$5,970.00
- Max Profit (per contract)
- $330.00
- Max Loss (per contract)
- -$270.00
- Breakeven(s)
- $59.70
- Risk / Reward Ratio
- 1.222
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.
URNM collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on URNM. 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% | -$270.00 |
| $13.34 | -77.9% | -$270.00 |
| $26.67 | -55.8% | -$270.00 |
| $40.00 | -33.7% | -$270.00 |
| $53.34 | -11.5% | -$270.00 |
| $66.67 | +10.6% | +$330.00 |
| $80.00 | +32.7% | +$330.00 |
| $93.33 | +54.8% | +$330.00 |
| $106.66 | +76.9% | +$330.00 |
| $119.99 | +99.0% | +$330.00 |
When traders use collar on URNM
Collars on URNM hedge an existing long URNM 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.
URNM thesis for this collar
The market-implied 1-standard-deviation range for URNM extends from approximately $51.09 on the downside to $69.51 on the upside. A URNM collar hedges an existing long URNM 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 URNM IV rank near 51.73% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on URNM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, URNM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URNM-specific events.
URNM 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. URNM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URNM alongside the broader basket even when URNM-specific fundamentals are unchanged. Always rebuild the position from current URNM chain quotes before placing a trade.
Frequently asked questions
- What is a collar on URNM?
- A collar on URNM is the collar strategy applied to URNM (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 URNM etf trading near $60.30, the strikes shown on this page are snapped to the nearest listed URNM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are URNM 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 URNM collar priced from the end-of-day chain at a 30-day expiry (ATM IV 53.30%), the computed maximum profit is $330.00 per contract and the computed maximum loss is -$270.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URNM collar?
- The breakeven for the URNM collar priced on this page is roughly $59.70 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 URNM market-implied 1-standard-deviation expected move is approximately 15.28%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on URNM?
- Collars on URNM hedge an existing long URNM 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 URNM implied volatility affect this collar?
- URNM ATM IV is at 53.30% with IV rank near 51.73%, 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.