UST Collar Strategy
UST (ProShares - Ultra 7-10 Year Treasury), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra 7-10 Year Treasury aims to deliver daily investment returns that effectively double the single-day performance of the ICE U.S. Treasury 7-10 Year Bond Index, all before accounting for any associated fees and operational costs.
UST (ProShares - Ultra 7-10 Year Treasury) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $15.2M, a beta of 2.34 versus the broader market, a 52-week range of 41.13-45.43, average daily share volume of 8K, a public-listing history dating back to 2010. These structural characteristics shape how UST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.34 indicates UST has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UST pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UST?
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 UST snapshot
As of June 30, 2026, spot at $42.34, ATM IV 283.10%, IV rank 100.00%, expected move 81.16%. The collar on UST 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 17-day expiry.
Why this collar structure on UST specifically: IV regime affects collar pricing on both sides; elevated UST IV at 283.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 81.16% (roughly $34.36 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UST expiries trade a higher absolute premium for lower per-day decay. Position sizing on UST should anchor to the underlying notional of $42.34 per share and to the trader's directional view on UST etf.
UST collar setup
The UST 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 UST near $42.34, the first option leg uses a $44.46 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UST chain at a 17-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 UST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $42.34 | long |
| Sell 1 | Call | $44.46 | N/A |
| Buy 1 | Put | $40.22 | N/A |
UST collar risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
UST collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UST. 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.
When traders use collar on UST
Collars on UST hedge an existing long UST 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.
UST thesis for this collar
The market-implied 1-standard-deviation range for UST extends from approximately $7.98 on the downside to $76.70 on the upside. A UST collar hedges an existing long UST 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 UST IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on UST at 283.10%. As a Financial Services name, UST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UST-specific events.
UST 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. UST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UST alongside the broader basket even when UST-specific fundamentals are unchanged. Always rebuild the position from current UST chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UST?
- A collar on UST is the collar strategy applied to UST (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 UST etf trading near $42.34, the strikes shown on this page are snapped to the nearest listed UST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UST 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 UST collar priced from the end-of-day chain at a 30-day expiry (ATM IV 283.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UST collar?
- The breakeven for the UST collar priced on this page is no defined breakeven on the modeled curve 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 UST market-implied 1-standard-deviation expected move is approximately 81.16%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UST?
- Collars on UST hedge an existing long UST 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 UST implied volatility affect this collar?
- UST ATM IV is at 283.10% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.