UVIX Collar Strategy
UVIX (2x Long VIX Futures ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on CBOE.
This index is designed to track the daily performance of a hypothetical investment basket consisting of long positions in VIX futures contracts, specifically those with the closest two expiration dates. To maintain a consistent average time until maturity for these futures, the portfolio is adjusted through a daily rebalancing mechanism. The index's value is finalized each day at 4:00 p.m. Eastern Time, calculated from the average trading price of its component futures during the period between 3:45 p.m. and 4:00 p.m. Eastern Time.
UVIX (2x Long VIX Futures ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $60.2M, a beta of -4.27 versus the broader market, a 52-week range of 34.9-293, average daily share volume of 2.0M, a public-listing history dating back to 2022. These structural characteristics shape how UVIX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -4.27 indicates UVIX has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a collar on UVIX?
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.
UVIX snapshot
As of September 30, 2026, spot at $36.38, ATM IV 108.00%, IV rank 32.38%, expected move 30.96%. The collar on UVIX 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 30-day expiry.
Why this collar structure on UVIX specifically: IV regime affects collar pricing on both sides; mid-range UVIX IV at 108.00% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 30.96% (roughly $11.26 on the underlying). The 30-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated UVIX expiries trade a higher absolute premium for lower per-day decay. Position sizing on UVIX should anchor to the underlying notional of $36.38 per share and to the trader's directional view on UVIX etf.
UVIX collar setup
The UVIX 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 UVIX at $36.38 on that close, the first option leg uses a $38.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UVIX chain at a 30-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 UVIX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 100 shares | Stock | $36.38 | long |
| Sell 1 | Call | $38.00 | $3.90 |
| Buy 1 | Put | $35.00 | $3.65 |
UVIX collar risk and reward
- Net Premium / Debit
- -$3,613.00
- Max Profit (per contract)
- $187.00
- Max Loss (per contract)
- -$113.00
- Breakeven(s)
- $36.13
- Risk / Reward Ratio
- 1.655
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.
UVIX collar payoff curve
Modeled P&L at expiration across a range of underlying prices for the collar on UVIX. 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% | -$113.00 |
| $8.05 | -77.9% | -$113.00 |
| $16.10 | -55.8% | -$113.00 |
| $24.14 | -33.6% | -$113.00 |
| $32.18 | -11.5% | -$113.00 |
| $40.22 | +10.6% | +$187.00 |
| $48.27 | +32.7% | +$187.00 |
| $56.31 | +54.8% | +$187.00 |
| $64.35 | +76.9% | +$187.00 |
| $72.39 | +99.0% | +$187.00 |
When traders use collar on UVIX
Collars on UVIX hedge an existing long UVIX 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.
UVIX thesis for this collar
The market-implied 1-standard-deviation range for UVIX extends from approximately $25.12 on the downside to $47.64 on the upside. A UVIX collar hedges an existing long UVIX 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 UVIX IV rank near 32.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on UVIX should anchor more to the directional view and the expected-move geometry. As a Financial Services name, UVIX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UVIX-specific events.
UVIX 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. UVIX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UVIX alongside the broader basket even when UVIX-specific fundamentals are unchanged. Always rebuild the position from current UVIX chain quotes before placing a trade.
Frequently asked questions
- What is a collar on UVIX?
- A collar on UVIX is the collar strategy applied to UVIX (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 UVIX etf at $36.38 on the September 30, 2026 close, the strikes shown on this page are snapped to the nearest listed UVIX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UVIX 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 UVIX collar priced from the September 30, 2026 end-of-day chain at a 30-day expiry (ATM IV 108.00%), the computed maximum profit is $187.00 per contract and the computed maximum loss is -$113.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UVIX collar?
- The breakeven for the UVIX collar priced on this page is roughly $36.13 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 UVIX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 30.96%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a collar on UVIX?
- Collars on UVIX hedge an existing long UVIX 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 UVIX implied volatility affect this collar?
- UVIX ATM IV is at 108.00% with IV rank near 32.38%, 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.