URTY Collar Strategy
URTY (ProShares - UltraPro Russell2000), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
ProShares UltraPro Russell2000 is structured to provide daily investment outcomes that magnify the Russell 2000 Index's daily performance by a factor of three. This target is pursued before accounting for any operational fees or expenses.
URTY (ProShares - UltraPro Russell2000) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $271.5M, a beta of 3.83 versus the broader market, a 52-week range of 43.33-89.85, average daily share volume of 725K, 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 3.83 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.
URTY snapshot
As of September 30, 2026, spot at $67.69, ATM IV 53.70%, IV rank 13.28%, expected move 15.40%. The collar on URTY below is built from the September 30, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 16-day expiry.
Why this collar structure on URTY specifically: IV regime affects collar pricing on both sides; compressed URTY IV at 53.70% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 15.40% (roughly $10.42 on the underlying). The 16-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 $67.69 per share and to the trader's directional view on URTY etf.
URTY collar setup
The URTY collar below is built from the September 30, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With URTY at $67.69 on that close, the first option leg uses a $70.00 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 16-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 | $67.69 | long |
| Sell 1 | Call | $70.00 | $2.20 |
| Buy 1 | Put | $65.00 | $2.00 |
URTY collar risk and reward
- Net Premium / Debit
- -$6,749.00
- Max Profit (per contract)
- $251.00
- Max Loss (per contract)
- -$249.00
- Breakeven(s)
- $67.49
- Risk / Reward Ratio
- 1.008
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% | -$249.00 |
| $14.98 | -77.9% | -$249.00 |
| $29.94 | -55.8% | -$249.00 |
| $44.91 | -33.7% | -$249.00 |
| $59.87 | -11.5% | -$249.00 |
| $74.84 | +10.6% | +$251.00 |
| $89.80 | +32.7% | +$251.00 |
| $104.77 | +54.8% | +$251.00 |
| $119.73 | +76.9% | +$251.00 |
| $134.70 | +99.0% | +$251.00 |
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 $57.27 on the downside to $78.11 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 13.28% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on URTY at 53.70%. 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 at $67.69 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed URTY chain strike and the premiums come straight from that session's 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 September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 53.70%), the computed maximum profit is $251.00 per contract and the computed maximum loss is -$249.00 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 $67.49 at expiration, derived from the September 30, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The URTY market-implied 1-standard-deviation expected move in the same options snapshot is approximately 15.40%; 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 53.70% with IV rank near 13.28%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.