UTHY Collar Strategy
UTHY (US Treasury 30 Year Bond ETF), in the Financial Services sector, (Asset Management - Bonds industry), listed on NASDAQ.
The fund's manager primarily aims to fulfill its investment targets by committing at least 80% of the fund's total capital (which includes any funds borrowed for investment) to the securities comprising its benchmark index, during typical market environments. This benchmark is the ICE BofA Current 30-Year US Treasury Index, an index composed entirely of the most recently issued 30-year U.S. Treasury bond.
UTHY (US Treasury 30 Year Bond ETF) trades in the Financial Services sector, specifically Asset Management - Bonds, with a market capitalization of approximately $20.8M, a beta of 2.34 versus the broader market, a 52-week range of 39.115-43.44, average daily share volume of 95K, a public-listing history dating back to 2023. These structural characteristics shape how UTHY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.34 indicates UTHY has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UTHY pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a collar on UTHY?
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 UTHY snapshot
As of June 29, 2026, spot at $41.16, ATM IV 37.10%, IV rank 5.67%, expected move 10.64%. The collar on UTHY 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 UTHY specifically: IV regime affects collar pricing on both sides; compressed UTHY IV at 37.10% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.64% (roughly $4.38 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 UTHY expiries trade a higher absolute premium for lower per-day decay. Position sizing on UTHY should anchor to the underlying notional of $41.16 per share and to the trader's directional view on UTHY etf.
UTHY collar setup
The UTHY 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 UTHY near $41.16, the first option leg uses a $43.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UTHY 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 UTHY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $41.16 | long |
| Sell 1 | Call | $43.00 | $0.68 |
| Buy 1 | Put | $39.00 | $0.49 |
UTHY collar risk and reward
- Net Premium / Debit
- -$4,097.00
- Max Profit (per contract)
- $203.00
- Max Loss (per contract)
- -$197.00
- Breakeven(s)
- $40.97
- Risk / Reward Ratio
- 1.030
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.
UTHY collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UTHY. 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% | -$197.00 |
| $9.11 | -77.9% | -$197.00 |
| $18.21 | -55.8% | -$197.00 |
| $27.31 | -33.7% | -$197.00 |
| $36.41 | -11.5% | -$197.00 |
| $45.51 | +10.6% | +$203.00 |
| $54.61 | +32.7% | +$203.00 |
| $63.71 | +54.8% | +$203.00 |
| $72.81 | +76.9% | +$203.00 |
| $81.91 | +99.0% | +$203.00 |
When traders use collar on UTHY
Collars on UTHY hedge an existing long UTHY 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.
UTHY thesis for this collar
The market-implied 1-standard-deviation range for UTHY extends from approximately $36.78 on the downside to $45.54 on the upside. A UTHY collar hedges an existing long UTHY 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 UTHY IV rank near 5.67% 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 UTHY at 37.10%. As a Financial Services name, UTHY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UTHY-specific events.
UTHY 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. UTHY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UTHY alongside the broader basket even when UTHY-specific fundamentals are unchanged. Always rebuild the position from current UTHY chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UTHY?
- A collar on UTHY is the collar strategy applied to UTHY (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 UTHY etf trading near $41.16, the strikes shown on this page are snapped to the nearest listed UTHY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UTHY 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 UTHY collar priced from the end-of-day chain at a 30-day expiry (ATM IV 37.10%), the computed maximum profit is $203.00 per contract and the computed maximum loss is -$197.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UTHY collar?
- The breakeven for the UTHY collar priced on this page is roughly $40.97 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 UTHY market-implied 1-standard-deviation expected move is approximately 10.64%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UTHY?
- Collars on UTHY hedge an existing long UTHY 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 UTHY implied volatility affect this collar?
- UTHY ATM IV is at 37.10% with IV rank near 5.67%, 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.