URTY Collar Strategy
URTY (ProShares - UltraPro Russell2000), in the Financial Services sector, (Asset Management industry), listed on AMEX.
ProShares UltraPro Russell2000 seeks daily investment results, before fees and expenses, that correspond to three times (3x) the daily performance of the Russell 2000 Index.
URTY (ProShares - UltraPro Russell2000) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $343.3M, a beta of 3.97 versus the broader market, a 52-week range of 31.49-78.82, average daily share volume of 1.3M, a public-listing history dating back to 2010. These structural characteristics shape how URTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.97 indicates URTY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. URTY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on URTY?
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 URTY snapshot
As of May 15, 2026, spot at $70.94, ATM IV 66.40%, IV rank 35.08%, expected move 19.04%. The collar on URTY 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 URTY specifically: IV regime affects collar pricing on both sides; mid-range URTY IV at 66.40% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 19.04% (roughly $13.50 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 URTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on URTY should anchor to the underlying notional of $70.94 per share and to the trader's directional view on URTY etf.
URTY collar setup
The URTY 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 URTY near $70.94, the first option leg uses a $74.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed URTY 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 URTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $70.94 | long |
| Sell 1 | Call | $74.00 | $4.15 |
| Buy 1 | Put | $67.00 | $3.55 |
URTY collar risk and reward
- Net Premium / Debit
- -$7,034.00
- Max Profit (per contract)
- $366.00
- Max Loss (per contract)
- -$334.00
- Breakeven(s)
- $70.34
- Risk / Reward Ratio
- 1.096
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.
URTY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on URTY. 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% | -$334.00 |
| $15.69 | -77.9% | -$334.00 |
| $31.38 | -55.8% | -$334.00 |
| $47.06 | -33.7% | -$334.00 |
| $62.75 | -11.5% | -$334.00 |
| $78.43 | +10.6% | +$366.00 |
| $94.11 | +32.7% | +$366.00 |
| $109.80 | +54.8% | +$366.00 |
| $125.48 | +76.9% | +$366.00 |
| $141.17 | +99.0% | +$366.00 |
When traders use collar on URTY
Collars on URTY hedge an existing long URTY 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.
URTY thesis for this collar
The market-implied 1-standard-deviation range for URTY extends from approximately $57.44 on the downside to $84.44 on the upside. A URTY collar hedges an existing long URTY 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 URTY IV rank near 35.08% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on URTY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, URTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to URTY-specific events.
URTY 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. URTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move URTY alongside the broader basket even when URTY-specific fundamentals are unchanged. Always rebuild the position from current URTY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on URTY?
- A collar on URTY is the collar strategy applied to URTY (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 URTY etf trading near $70.94, the strikes shown on this page are snapped to the nearest listed URTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are URTY 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 URTY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 66.40%), the computed maximum profit is $366.00 per contract and the computed maximum loss is -$334.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a URTY collar?
- The breakeven for the URTY collar priced on this page is roughly $70.34 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 URTY market-implied 1-standard-deviation expected move is approximately 19.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on URTY?
- Collars on URTY hedge an existing long URTY 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 URTY implied volatility affect this collar?
- URTY ATM IV is at 66.40% with IV rank near 35.08%, 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.